For Immediate Release
GM Employee Pricing Saves Buyers Over $1100 per Vehicle in Ownership Costs
BLOOMFIELD HILLS, Michigan – July 5, 2005 – Vincentric, a leading automotive data compilation and analysis firm, released findings today showing that the General Motors Employee Discount For Everyone promotion provides buyers average savings of over $1,100 per vehicle through reductions in depreciation cost, interest payments, state fees & taxes, and opportunity cost.
Vincentric compiles the cost to own and operate over 1,900 vehicle configurations for the 2005 model year, and updates this information each month to analyze the impact of current market conditions. “The true impact of the savings with this program is greater than simply the price reduction,” stated David Wurster, Co-founder and President of Vincentric. “Factors such as depreciation, interest, and taxes are all reduced when the price drops, providing savings that are 26% higher than the price break,” he added.
Vincentric’s findings show that the “first mover” advantage enjoyed by GM through this reduction in ownership cost has significantly altered the competitive landscape, with numerous improvements for GM occurring in virtually all segments. Examples of these gains include:
- Luxury: The Cadillac Deville Base lowered its Cost of Ownership by $3171, passing the BMW 530i, Mercedes-Benz E320W CDI and E320W, Audi A6 3.2 Tip Quattro, Lincoln Town Car Signature and Executive, Jaguar S-Type 3.0L, Lexus GS300, and the Volvo 80 Series T6.
- Compact Pickup 4WD: The Chevrolet Colorado LS Z71 Regular Cab lowered its cost of ownership from $28,898 to $28,208, passing such notable trucks as the Tacoma Base Regular Cab 4 and the Ford Ranger XL and XLT Regular Cab.
- Subcompact: The Chevrolet Aveo Special Value 4D Sedan lowered its ownership costs from $25,375 to $24,846 passing the Honda Civic VP, 2D Coupe 5-speed and the Scion xA Hatchback 5-speed, giving the Aveo the lowest Cost of Ownership in the Subcompact Class.
- Large SUVs under $40,000: The 2WD Chevrolet Tahoe lowered its ownership costs to surpass the Toyota Sequoia. When combined with the low ownership costs of the GMC Envoy, the improvements by these vehicles gave GM the top four spots in this segment.
Clients and media can gain access to the results of national and state-level cost of ownership information through Vinbase Online™, a web access tool, by contacting Vincentric to obtain a user ID and password.
For further details on Vincentric’s study of the General Motors Employee Discount for Everyone promotion, visit www.vincentric.com. Vincentric will announce the impact of any similar programs offered by competing manufacturers as details become available.
Vincentric provides data, knowledge, and insight to the automotive industry by identifying and applying the many aspects of automotive value. Using Vinbase™, its comprehensive, proprietary cost-of-ownership database, the company measures and analyzes the overall cost of owning and operating vehicles and its effect on the value provided to consumers. Vincentric, LLC, is a privately held automotive data compilation and analysis firm headquartered in Bloomfield Hills, Michigan.
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