DealersEdge Professional Forums

We are a smallish dealer using 750-1000 gallons of oil per month. Has anyone out there made the switch to another oil company? not used the GM oil program at all?
I ask because a Citgo distributor has come in with prices half of what GM charges for equivalent product. I was just curious what the rest of the board does.

With PASE guidelines, you will have a hard time staying compliant if you buy oil from anyone other than GM. If purchase loyalty drops below 90 percent you soon lose all discounts, lose return reserve, lose RIM returns and are charged a premium if CSO orders are too high.

bigmac wrote:With PASE guidelines, you will have a hard time staying compliant if you buy oil from anyone other than GM. If purchase loyalty drops below 90 percent you soon lose all discounts, lose return reserve, lose RIM returns and are charged a premium if CSO orders are too high.

Oh, I am aware. It hurts your iMR funds also. I am not looking to change. The owner sees potential savings not losses. I love these talks

Prepaid / free maintenance still exist with GM? If you file claims and don't have the purchases to back them up, well....

bigmac wrote:With PASE guidelines, you will have a hard time staying compliant if you buy oil from anyone other than GM. If purchase loyalty drops below 90 percent you soon lose all discounts, lose return reserve, lose RIM returns and are charged a premium if CSO orders are too high.

Zep33 wrote:Prepaid / free maintenance still exist with GM? If you file claims and don't have the purchases to back them up, well....

These are pretty much the reasons that I jumped on the GM program from a company that was selling at super low prices. We still make money on oil changes, just maybe not as much as we were.

I make 1.80/quart on oil and 6.50 on filters. We do about 25 a day.

scott2112 wrote:I make 1.80/quart on oil and 6.50 on filters. We do about 25 a day.

Is that on conventional oil or Dexos?

I no longer sell conventional. its dexos 5w30 and 0w20. I try to keep gross profit % at 33% for all oils.

scott2112 wrote:I no longer sell conventional. its dexos 5w30 and 0w20. I try to keep gross profit % at 33% for all oils.

I sell my Dexos for $5.10 per quart and sell my filters for $6.50...as long as it's not anything uncommon.

I am on the GM oil program also. With what we would lose in return reserve is enough reason for me to be on it. Not to mention the Pase requirements makes it really hard not to be on it