Chevy Offers $11,000 Discount To Move Silverado

[Guest Wings4Life(BANNED)]

The past month or so has been the best time in eight years to buy a pickup — and, as predicted, it looks as if the time is getting even better. General Motors Co. (NYSE: GM) is currently offering a total incentive package of up to $11,115 on its 2016 Chevy Silverado 1500 Crew Cab LT All Star.

That’s almost double the company’s September average incentive of $5,647 on a pickup. GM was not the only automaker offering big incentive packages on pickups. Fiat Chrysler Automobiles NV (NYSE: FCAU) offered an average incentive of $7,082 on Ram pickups last month. Ford Motor Co.’s (NYSE: F) offer on the F-150 was the lowest of the three at $5,173.

As far as FCA is concerned, the September incentives did their job. The company’s Ram pickups outsold the Silverado by 2,412 units, the first time since 2011 that Ram has beaten Silverado in monthly sales.

http://247wallst.com/autos/2016/10/23/chevy-offers-11000-discount-to-move-silverado/

[G. David Felt]

How about just cutting the price so more people will buy rather than take crazy profits and selling less. If they can make a profit with an $11K discount, clearly they need to drop prices.

[ccap41]

1 hour ago, dfelt said:

How about just cutting the price so more people will buy rather than take crazy profits and selling less. If they can make a profit with an $11K discount, clearly they need to drop prices.

Agreed. I know it would entice a lot more people to come look at them if their MSRPs weren't 40-50k EASILY. Heck, I have a buddy who just spent 25k on a 2012 F150 XLT 3.5EB 4WD and I think it had 65k miles on it. If that same truck brand new was only 5k more or so I guarantee he would have just bought a new one but these incentives are all over the map. It's a crap shoot when to buy one to get a good deal on it or not.

[Guest Wings4Life(BANNED)]

 

People love discounts, and one could argue that creates more sales than a lower base price.

A modern truck today requires far more engineering than any luxury car or sports car.  That’s a bold statement, but think about what these things have to do relative to let’s say a $80K luxury sedan or sports car.  In some cases, trucks offer nearly the same luxury and features even. So at that level, their prices are somewhat justified.  But at an entry point, there is still a lot of engineering to make them so competitive.

 

IMO, if MSRP prices dropped $5K on average, there would be less interest than if they suddenly plopped it down on the hood.

[ccap41]

I can agree with that. That's why stores like Khols do well. It's that business model, and I personally hate it.

[FordCosworth]

Not a surprise at all. The Silverado is down 4% YTD ( Ford up 6% with FCA up 8% ), and a whooping 16% for the month of September.

With no lowering or stoppage in production, inventory is mounting and collecting dust. Therefore increase incentives ( like GM did with the growing Camaro inventory - a 139 supply heading into September ) to try and save face.

[Drew Dowdell]

@FordCosworth why do you yet again insist on comparing just Silverado to the entire Ford for Ram lineup? Silverado/Sierra are within a few thousand units of Ford in the 1/2 Ton 3/4 ton segment.  You'd pitch a fit if we counted all Ford trucks except the Platinums, King Ranches, and Raptors.  That is essentially what you're trying to do. 

That said, I saw this article pop up on my news feed yesterday and went out hunting for such a deal.  I had a really hard time finding a truck in my local inventory that had the full $11k in incentives.  In fact, I found none at my local dealers even though the website clearly was promoting the $11k incentive. 

So... that begs the question... how much of the $11k is smoke and mirrors to get people in the door and then turn them on to some other truck with lower incentives. I was actually pretty disappointed I couldn't find one... my Honda is back at the mechanic again after only a week since the last trip, I really need to get out of that car. 

[Guest Wings4Life(BANNED)]

48 minutes ago, Drew Dowdell said:

@FordCosworth why do you yet again insist on comparing just Silverado to the entire Ford for Ram lineup? Silverado/Sierra are within a few thousand units of Ford in the 1/2 Ton 3/4 ton segment.  You'd pitch a fit if we counted all Ford trucks except the Platinums, King Ranches, and Raptors.  That is essentially what you're trying to do. 

That said, I saw this article pop up on my news feed yesterday and went out hunting for such a deal.  I had a really hard time finding a truck in my local inventory that had the full $11k in incentives.  In fact, I found none at my local dealers even though the website clearly was promoting the $11k incentive. 

So... that begs the question... how much of the $11k is smoke and mirrors to get people in the door and then turn them on to some other truck with lower incentives. I was actually pretty disappointed I couldn't find one... my Honda is back at the mechanic again after only a week since the last trip, I really need to get out of that car. 

I believe he referenced sales trajectories through the year for each brand, which is what motivates incentive deals like this in the first place.  He did not reference or compare total sales of anything.  And your analogy about trim levels, is outrageous. Two distinct brands offer very unique advantages, and disadvantages.

[Drew Dowdell]

You know as well as anyone that there is a difference between badge engineering and platform engineering.  The difference between a Silverado and Sierra is just about the same difference between an F-150 XLT and a King Ranch, or a Lariat 3.5 EB and a Raptor.

[surreal1272]

1 hour ago, Drew Dowdell said:

@FordCosworth why do you yet again insist on comparing just Silverado to the entire Ford for Ram lineup? Silverado/Sierra are within a few thousand units of Ford in the 1/2 Ton 3/4 ton segment.  You'd pitch a fit if we counted all Ford trucks except the Platinums, King Ranches, and Raptors.  That is essentially what you're trying to do. 

That said, I saw this article pop up on my news feed yesterday and went out hunting for such a deal.  I had a really hard time finding a truck in my local inventory that had the full $11k in incentives.  In fact, I found none at my local dealers even though the website clearly was promoting the $11k incentive. 

So... that begs the question... how much of the $11k is smoke and mirrors to get people in the door and then turn them on to some other truck with lower incentives. I was actually pretty disappointed I couldn't find one... my Honda is back at the mechanic again after only a week since the last trip, I really need to get out of that car. 

Maybe GM should have been smarter, like Ford, and just shut down production for a week or two and let employees get paid for doing nothing during that time as opposed to offering the actual customers a nice enticement to buy one of their trucks. 

 

Thats sarcasm btw. 

[ccap41]

1 hour ago, Drew Dowdell said:

@FordCosworth why do you yet again insist on comparing just Silverado to the entire Ford for Ram lineup? Silverado/Sierra are within a few thousand units of Ford in the 1/2 Ton 3/4 ton segment.  You'd pitch a fit if we counted all Ford trucks except the Platinums, King Ranches, and Raptors.  That is essentially what you're trying to do. 

That said, I saw this article pop up on my news feed yesterday and went out hunting for such a deal.  I had a really hard time finding a truck in my local inventory that had the full $11k in incentives.  In fact, I found none at my local dealers even though the website clearly was promoting the $11k incentive. 

So... that begs the question... how much of the $11k is smoke and mirrors to get people in the door and then turn them on to some other truck with lower incentives. I was actually pretty disappointed I couldn't find one... my Honda is back at the mechanic again after only a week since the last trip, I really need to get out of that car. 

It costs money to design and produce two different: Front facia, grills, headlights, and likely a similar setup out back with different tail lights and tailgate, then two tweaked interiors. I understand all of the sold mechanicals are the exact same but combining sales of two products(when referencing money) doesn't make sense. Because it will cost more to produce 1 Silverado and 1 Sierra than it will 2 F150's or two Ram 1500s because more parts need to be made.

For what it's worth somebody on another site showed about 20k off of a Ford diesel(I assumed it was a 2016 as the 2017's are on lots now).

[Guest Wings4Life(BANNED)]

35 minutes ago, Drew Dowdell said:

You know as well as anyone that there is a difference between badge engineering and platform engineering.  The difference between a Silverado and Sierra is just about the same difference between an F-150 XLT and a King Ranch, or a Lariat 3.5 EB and a Raptor.

Again, he did not mention sales totals, only what probably motivated increased incentives.  In the case for Silverado, for example, they felt the need to motivate sales based on sales trajectories. 

[FordCosworth]

1 hour ago, Drew Dowdell said:

@FordCosworth why do you yet again insist on comparing just Silverado to the entire Ford for Ram lineup? Silverado/Sierra are within a few thousand units of Ford in the 1/2 Ton 3/4 ton segment.  You'd pitch a fit if we counted all Ford trucks except the Platinums, King Ranches, and Raptors.  That is essentially what you're trying to do. 

That said, I saw this article pop up on my news feed yesterday and went out hunting for such a deal.  I had a really hard time finding a truck in my local inventory that had the full $11k in incentives.  In fact, I found none at my local dealers even though the website clearly was promoting the $11k incentive. 

So... that begs the question... how much of the $11k is smoke and mirrors to get people in the door and then turn them on to some other truck with lower incentives. I was actually pretty disappointed I couldn't find one... my Honda is back at the mechanic again after only a week since the last trip, I really need to get out of that car. 

Insist on comparing Silverado to the F Series and Ram lineup? 

I suppose one should maybe read the attached link in the OP.  Is 24/7 wall st insisting too? As there is NO mention of the GMC Sierra either. Its about the Chevy brand doubling their incentives. And last I saw, the Silverado also has different trim lvls, 1/2 ton, 3/4 ton, though noticeably not a Raptor, like Ford, like Ram, too.

Was it the Dealers web site, or Cheverolet.com promoting the 11k incentives? Either way, unless there's some " fine print " ( stating the Silverado HAD to be on the lot ATM, certain dates, trims etc ) the ammo is in the gun and you need to play hard ball.

 

[surreal1272]

Ford offers more trims (with different grills, bumper covers, and other sheet metal nuances) than GM so there is are just as many variations for Ford to build than for GM to make the two different brands they supply. This one is better than two or two is better than one argument is just asinine knowing those simple facts. 

 

 

Edited October 24, 2016 by surreal1272

[ccap41]

Ford has two differently shaped headlights and tail lights forcing facias and tailgates to be molded differently?

[surreal1272]

On 10/24/2016 at 4:00 PM, ccap41 said:

Ford has two differently shaped headlights and tail lights forcing facias and tailgates to be molded differently?

2

One word. 

 

Raptor. 

Edited October 26, 2016 by William Maley

[ccap41]

And weird enough.. the headlight and taillight are the same. It is really difficult to see but if you squint really really hard and put your face really really close to your monitor and then slam your face into the monitor you'll be able to see they are using the same head light and tail light.. With different fenders, you are correct. But still the same lights.

[Drew Dowdell]

59 minutes ago, ccap41 said:

It costs money to design and produce two different: Front facia, grills, headlights, and likely a similar setup out back with different tail lights and tailgate, then two tweaked interiors. I understand all of the sold mechanicals are the exact same but combining sales of two products(when referencing money) doesn't make sense. Because it will cost more to produce 1 Silverado and 1 Sierra than it will 2 F150's or two Ram 1500s because more parts need to be made.

For what it's worth somebody on another site showed about 20k off of a Ford diesel(I assumed it was a 2016 as the 2017's are on lots now).

Indeed it does take money to do different headlights, tail lights, hood, and interiors... different grilles, some with light pipes in the headlight, some without...   By my count on Ford.com, Ford has at least 12 different grilles, 6 different front bumpers, and at least 5 different headlight cluster assemblies for the 150/250.  Ram has 5 grilles, 4 bumpers, and 3 headlight assemblies. GM has 4 headlight clusters (Silverado 1500, Silverado 2500, Sierra 1500, Sierra 2500), 9 grilles, and 4 front bumpers (two each for 1500 and 2500) with various coatings.  

The interiors of the GM trucks are so identical... I can't even spot any difference beyond the airbag cover on the wheel... there might be some material composition differences, but those are paid for by the more expensive prices on the GMC anyway just like paying for 2-tone paint and fancy leather on a King Ranch is more expensive.  

So let's not try and pretend that there is some vast cost advantage in the engineering department that Ford has over GM by sticking all of the trucks in a single brand.  It's literally an extra airbag cover and tailgate badge that GM has to do where Ford doesn't. And yet GM actually has fewer choices in "look" than Ford. 

 

 

[FordCosworth]

Nice looking trucks!

[Drew Dowdell]

Indeed... I could see myself in a King Ranch... but that's what my mom drives and I'm not sure I want to go that way. 

[ccap41]

7 minutes ago, Drew Dowdell said:

Indeed it does take money to do different headlights, tail lights, hood, and interiors... different grilles, some with light pipes in the headlight, some without...   By my count on Ford.com, Ford has at least 12 different grilles, 6 different front bumpers, and at least 5 different headlight cluster assemblies for the 150/250.  Ram has 5 grilles, 4 bumpers, and 3 headlight assemblies. GM has 4 headlight clusters (Silverado 1500, Silverado 2500, Sierra 1500, Sierra 2500), 9 grilles, and 4 front bumpers (two each for 1500 and 2500) with various coatings.  

The interiors of the GM trucks are so identical... I can't even spot any difference beyond the airbag cover on the wheel... there might be some material composition differences, but those are paid for by the more expensive prices on the GMC anyway just like paying for 2-tone paint and fancy leather on a King Ranch is more expensive.  

So let's not try and pretend that there is some vast cost advantage in the engineering department that Ford has over GM by sticking all of the trucks in a single brand.  It's literally an extra airbag cover and tailgate badge that GM has to do where Ford doesn't. And yet GM actually has fewer choices in "look" than Ford. 

 

 

First, where did the 250/2500s come from? I guess I was only assuming the half tons.. Either way.

I also didn't single out Ford, I said Ram as well as they don't have two brand for the same truck with different lights, etc.

Those you pictures outside of the Raptor as the same exact mold with different colors and parts covered vs opened. They might be different grills but they're all fitting in the same exact shape/location whereas the GMC and Chevy have two different shapes and splits meaning they must redesign the rear clips and surround for both, same with lights and everything else mentioned. Yes, you are also right when it comes to the higher prices of the GMC help pay for those tweaks but those tweaks do cost money and with vehicles where margins are typically very small(less so with trucks, as you know) everything they can make the same adds up.

[FordCosworth]

FYI there is some " fine print ".

A total incentive package of up to $11,115 on its 2016 Chevy Silverado 1500 Crew Cab LT All Star

The kickbacks are for only one trim of Silverado 1500

[Drew Dowdell]

6 minutes ago, ccap41 said:

First, where did the 250/2500s come from? I guess I was only assuming the half tons.. Either way.

I also didn't single out Ford, I said Ram as well as they don't have two brand for the same truck with different lights, etc.

Those you pictures outside of the Raptor as the same exact mold with different colors and parts covered vs opened. They might be different grills but they're all fitting in the same exact shape/location whereas the GMC and Chevy have two different shapes and splits meaning they must redesign the rear clips and surround for both, same with lights and everything else mentioned. Yes, you are also right when it comes to the higher prices of the GMC help pay for those tweaks but those tweaks do cost money and with vehicles where margins are typically very small(less so with trucks, as you know) everything they can make the same adds up.

Actually, the clips and everything are in the same places.  You can take the front end off of a Sierra and graft it onto a Silverado and fastener wise, everything will line up.   As I mentioned, GMC gets its two sets of bumpers and headlights, Chevrolet gets its own sets... the puzzle pieces for each set fit together.  

With the number of other permutations being largely the same, Ford spends more on grilles and bumpers while GM spends more on front fenders...  The tail light shape and tailgates on both of the GMs are identical. The front fenders are so close that anyone with a grinder could modify a GMC fender into a Chevrolet fender (but not vice versa unless you're good at adding sheet metal.) The exact same modifications that go into making a Raptor front clip.

So again... it is a falsehood... a mistake... erroneous... to imply that Ford has some massive engineering and profit advantage here by keeping their trucks in a single brand. 

4 minutes ago, FordCosworth said:

FYI there is some " fine print ".

A total incentive package of up to $11,115 on its 2016 Chevy Silverado 1500 Crew Cab LT All Star

The kickbacks are for only one trim of Silverado 1500

Boo..well that's why I couldn't find one then... I was only looking at 2017s...

So they're clearing out old stock at the end of a model year.... no news here.... 

[Drew Dowdell]

And the reason the 250/2500s are in there is because that's the way Ford counts them.  They count F-150/250/350 all as a single model.  Then @FordCosworth goes around comparing it to just the Silverado to suit his purpose of trying to elevate Ford.

 

[FordCosworth]

And " up to 11k " wouldn't be an easy task to qualify for. 

Things like " must be member of 4H Club, VFW, or had a Flu shot within the past month "... 

22 minutes ago, Drew Dowdell said:

And the reason the 250/2500s are in there is because that's the way Ford counts them.  They count F-150/250/350 all as a single model.  Then @FordCosworth goes around comparing it to just the Silverado to suit his purpose of trying to elevate Ford.

 

Chevy counts the same way. As does Ram, as does GMC

When you see " Silverado Sept Sales are XX,XXX, or YTD " etc etc. they include 1500/2500/3500. 

Edited October 24, 2016 by FordCosworth

[Guest Wings4Life(BANNED)]

Wait, why are we counting the complexity of grills (which is actually not complex at all) while ignoring the very costly and complex process of different body panels and interior panels?   

 

 

 

[surreal1272]

2 hours ago, Drew Dowdell said:

And the reason the 250/2500s are in there is because that's the way Ford counts them.  They count F-150/250/350 all as a single model.  Then @FordCosworth goes around comparing it to just the Silverado to suit his purpose of trying to elevate Ford.

 

A thousand times, this^^^!!

 

and mentioning the interior shows that someone clearly has not looked at both, which are the same save for badging and Denali trims. 

Edited October 25, 2016 by surreal1272

[ocnblu]

Everything from the fenders forward is different between Chevy/GMC.  The bedsides are different.  The taillight cutouts are a different shape.  In addition, on the previous gen trucks, the tailgates were different.  I will have to look at the new trucks again to see if there is a difference in the tailgates, but I think, without verifying, that they are the same.  GM is working toward making the trucks less identical than in decades past.  As far as interiors, all except for the highest trim levels are the same between GMC and Chevy... except for badging, and maybe a wood tone trim piece v. a silver painted.

[ccap41]

2 hours ago, Wings4Life said:

Wait, why are we counting the complexity of grills (which is actually not complex at all) while ignoring the very costly and complex process of different body panels and interior panels?   

 

 

 

This was my main point. This and the headlight fixtures. They are way more complex than people give them credit for.

1 hour ago, ocnblu said:

Everything from the fenders forward is different between Chevy/GMC.  The bedsides are different.  The taillight cutouts are a different shape.  In addition, on the previous gen trucks, the tailgates were different.  I will have to look at the new trucks again to see if there is a difference in the tailgates, but I think, without verifying, that they are the same.  GM is working toward making the trucks less identical than in decades past.  As far as interiors, all except for the highest trim levels are the same between GMC and Chevy... except for badging, and maybe a wood tone trim piece v. a silver painted.

Yes, I was wrong on the interiors. They are much more similar than I thought. Not really sure why I thought they were a little different, but they really aren't. 

[Guest Wings4Life(BANNED)]

2 minutes ago, ccap41 said:

This was my main point. This and the headlight fixtures. They are way more complex than people give them credit for.

agreed on headlights.

[ccap41]

8 minutes ago, Wings4Life said:

agreed on headlights.

I'd wager good money on if one had to replace their headlight housing for either any of these trucks with all the LEDs and HIDs you're talking about a grand per fixture. Wasn't there a test ahile back where they were getting estimates to repair the F150(they sledge hammered) and the tail light was like a grand with the sensor in it..? I'll have to look that up.

I found it really quick.

2015 F150 damage repair

"The price jumped from $106.28 to $887.25. For a taillight."

Edited October 25, 2016 by ccap41

[Drew Dowdell]

On 10/24/2016 at 7:20 PM, Wings4Life said:

Wait, why are we counting the complexity of grills (which is actually not complex at all) while ignoring the very costly and complex process of different body panels and interior panels? 

Because the body panels are largely identical except for a tiny big of metal at the bottom of the headlights. It's two fenders and a hood. The interiors are absolutely identical except for the airbag cover.  The trim pieces may be a different material, but that's no different than different materials of the same shape offered on various grades of F-series.  Again, no advantage to Ford here.  GMC will gladly print extra Denali airbag covers for the average $4,500 markup they get for the effort. 

[ccap41]

2 hours ago, Drew Dowdell said:

Because the body panels are largely identical except for a tiny big of metal at the bottom of the headlights. It's two fenders and a hood. The interiors are absolutely identical except for the airbag cover.  The trim pieces may be a different material, but that's no different than different materials of the same shape offered on various grades of F-series.  Again, no advantage to Ford here.  GMC will gladly print extra Denali airbag covers for the average $4,500 markup they get for the effort. 

They might be minute changes but that's two different molds for multiple panels. No denying the Denalis are paying for the difference but there are enough different pieces(and I'm glad there are as the trucks aren't just tacky badge jobs - they've differentiated them very well, IMO) to add a decent cost difference between the two. But I do see what you mean with the multiple variations of F150 and there are 11 different trims for Ram as well. 

[Drew Dowdell]

12 hours ago, ccap41 said:

They might be minute changes but that's two different molds for multiple panels. No denying the Denalis are paying for the difference but there are enough different pieces(and I'm glad there are as the trucks aren't just tacky badge jobs - they've differentiated them very well, IMO) to add a decent cost difference between the two. But I do see what you mean with the multiple variations of F150 and there are 11 different trims for Ram as well. 

Again... that is exactly my point. I'm not saying that there isn't a cost increase to do multiple variations of trucks.... I'm saying that the big three all have roughly the same number of variations. Where GM has to stamp 2 extra fenders, Ford has multiple different bumper setups and actually a greater number of grilles than GM. On the GM's, the interiors are identical with only the trim material (not the trim shape) being different. So even with all of the variants available from all of the above, in GM's case... there is just an extra badge in the mix that sells at a premium.