The Chevy Silverado, the second best-selling vehicle in America, is on sale. The General Motors division has a model that it has discounted $9,515. The pickup category is ruthlessly competitive. The deal shows how far that competition goes, financially.
Chevy is locked in competition with two other companies in the full-sized pickup segment of the car industry. The Ford F-150 has been the best-selling vehicle in America for four decades. The Ram, from Fiat Chrysler, rounds out the competition. Despite their sturdy construction, none of the big pickups is on the list of 15 cars most likely to last 15 years.
The version of the Silverado with the deepest discount is the 2019 Crew Cab LT All Star Z71. The $9,515 sum includes a total cash discount of $4,000, a $3,015 discount from MSRP (manufacturer’s suggested retail price), a $2,000 competitive owner cash offer, and a $500 discount on options. A quick break down shows how few people can actually get the discount.
First, the buyer has to get financing through GM Financial, a way for GM to make extra money. Next, it is hard to find out what “competitive owners discount” is by viewing the chevy.com site. Presumably, it is a discount for people who currently own competing pickups. As for the option package, it is also hard to find what is on that list. At least we looked hard.
There are two primary discounts. The total case discount of $4,000 is easy to understand. The $3,015 discount is off an artificial price. The manufacturer’s suggested retail price does not bind dealers anymore if it ever did.
Chevy has another offer if people would rather lease than own this version of the Silverado. A “well qualified” customer can 0% APR, 72-month lease. While long-term leases have started to become more risky for car and finance companies, Chevy and GM are willing to take the six-year risk. When and if a buyer takes one of Chevy’s two offers, another advantage is that large pickups are among the 25 least expensive cars in America to insure.
The most astonishing thing about the large discount on the Silverado is that it may not be a discount at all, at least according to the fine print:
*MSRP less cash offers. Tax, title, license and dealer fees extra. Residency restrictions apply. Not available with some other offers. See dealer for details.
1 Not available with special financing, lease and some other offers. See participating dealer for details. Must take retail delivery by 04/30/2019
2 Not available with special financing, lease and some other offers. See participating dealer for details. Must take retail delivery by 05/31/2019
3 Not available with lease and some other offers. Residency restrictions apply. Must take retail delivery by 04/30/2019
4 Not available with lease and some other offers. See dealer for details. Must take retail delivery by 05/31/2019
5 Some customers may not qualify. Not available with special financing, lease and some other offers. See dealer for details. Must take retail delivery by 04/30/2019
Those are a lot of hurdles to clear.