I’m just going to call GM and Chevrolet “GM” for the purposes of this post.
I went with my wife on December 30 (prior to January 3rd, which is when the Red Tag promotion ended) to look at 2005 Chevrolet Tahoes. We have some amount of negative equity in my wife’s current car, but based on the research I had done, it seemed that with red tag pricing and 0% financing, we could come out to a place where we felt ok. The dealership that we went to at least 50 (but more like 100) 2005 SUVs — Tahoes, Suburbans, and Trailblazers on the lot. Long story short, apparently we didn’t read the fine print that you either choose Red Tag pricing or 0% financing, but you don’t get both.
Now here’s the thing: I’ve driven by the dealership and it doesn’t seem like they moved too many of the 2005 new vehicles that were on their lot, nor does it look like they moved too many of the 2006 vehicles that are on their lot. The 2007 Tahoes, Yukons, and Suburbans either are on dealer lots, or will be within the next few days. So now a dealer like the one I went to has a whole lot of 2005 models that are new, a whole lot of 2006 models that are new, and is taking delivery of a whole lot of new 2007 models. Compound that with the fact that the 2007 models include a gas-saving feature that shuts down 4 of the engine cylinders when they are not needed and in my humble opinion, dealers might be in real inventory trouble.
As if everything in the last paragraph isn’t enough, Autoblog reports that GM just announced a hybrid Tahoe/Yukon for 2008, which is supposed to deliver a 25% fuel efficiency over the 2007 model.
With the car my wife drives now, a 2005 Tahoe/Yukon would be a vast improvement in gas mileage if the price was right. I’m just waiting to see what GM does with incentives and financing to help dealers move the 2005 and 2006 models. Currently (expiring 1/10/05), GM is offering $8,000 cash back or 0% for 72 months on Tahoe + option package discounts; I’m just waiting for $8,000 cash + 0% + option package discounts before we pull the trigger. Hey, if you’re a car dealer out of state and can get around residency restrictions, etc. and want to offer me the deal, I’m sure we can work something out prior to the 10th, otherwise, I’m content to wait.