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There are these "Bonus tags" on selected individual cars and specific dealerships. What are these tags anyways? are they applied by the dealer, and therefore part of the dealer discount? Are they cash provided by GM, and therefore not to be considered in negotiating a dealer discount? These tags seem to be applied and disregarded routinely, and that's making my bull**** detector go off.

I suspect that GM is actually just providing a rebate on all the cars, but hiding it by saying it only applies to specific cars.

What is the truth on these tags?
 

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They are cash from GM, just like private offers. Last time I asked, tags expire at the end of a month and the dealer can apply tags during 2 time periods each month. Each tag program will declare what % of a certain model can be tagged. The "dealer discount" is an agglomeration of GM programs and whatever the dealer wants to chip in from his profit margin. Supplier or employee pricing are GM subsidized as well, IIRC.
 

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I believe it's a manufacturer rebate to the dealer. Often for cars that have been on the lot for a while. If the dealer has two cars that qualify but only one bonus tag, after they sell the first car they can apply the tag to the second. It's definitely part of the dealer discount, but ultimately the price you get is based on what the dealer thinks it can get.
 
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