GM Dealerships Hurt Sales

So I'm one of the rare folks actually looking to buy a car, possibly new. Given the current economy and GM news, I had thought I would be a rare shopper. However, after talking/visiting 2 Chevy dealerships in the Lansing area, they have been happy to give the feel that business is good.

I don't fault them here, I can understand the need to make customers feel like they'll be around for a long time, and your making a good investment in their store. Its the life blood of capitalism. But the dealerships seemed to lay it on a little too thick.

For instance:
They gave me this quote:

"People still have jobs, and you don't see anyone walking into work yet"
(actually I do know a few)

Meanwhile, another sales rep was happy to tell me about his 4 corvettes he owns and how they can't keep cars in stock.

Something to understand when buying a new car, you generally will get a fixed price, and some GM incentives. This makes senses, as it prevents undercutting other dealerships, and its not just the auto industry that did this. However, if you plan a trade-in then you can haggle a bit between the different dealerships.

So here's my rub. The price we're getting quoted for our Nissan Maxima is $1,500. The sales rep then went into a 15 minute diatribe (complete with arms flailing) about how their cautious with buying used cars, because if they can not resell them, it goes to auction. There was also a contradiction regarding how well the market is. So, if your buying from them, the market is strong, but if your selling to them, suddenly the market/credit sucks.

However, (in my best Stone Philips voice) remember that time when I mentioned how the sales person was bragging about owning 4 Corvettes? It seems to me that if GM needs to sell vehicles, they will need the dealers to also take a hit. If that means the sales person will have to cut back on buying Corvettes, then so be it. There are several sites that will give you data on what to expect for a trade-in. Websites, I've looked at indicate $2,200 for my trade-in.

These days of uncertainty, every dollar counts. Given that, if dealers can not offer the expected trade price, then they loose a sale for GM. GM goes down the toilet. Chevrolet sales guy out of a job.