I always thought it was funny how I used to see so many early third gen V8s with no PW or PL, and how virtually every newer third gen V8 I have seen has these and more. After consulting one of my books, I see why...

I know preferred equipment packages debuted in '88 or '89. They really did change the way people ordered these things I think...For instance, I always thought of Formulas as being the budget, stripped down performance car. Because of this, I was always surprised to see so many with PW, PL and other goodies. I always thought that these were contrary to the purpose of the budget performance V8. Then I looked through the RPO codes on the Formula I am 95% sure I am buying, and it made more sense...

For instance, a 1SB option package on a Formula added body side moldings, PW, PL, courtesy lights and tone. The package cost $499, but the "savings" was $1,200. So you get all this stuff for a credit of $701. Where's the budget V8 theory when you can get MORE stuff for LESS??

Why did GM do stuff like this?? I mean, my RS had a preferred equipment group too, but I never paid any attention to the impact it had. Any idea why GM penalized people for options they may not want??

 

Its easier for GM if the cars are closer to being identical. If you've got option packages, its less likely that a buyer is going to pick and choose options when it'll cost more. Its just GM making a smart business decision.

 

Drew, I understand what you're saying entirely. I order cars at work...option packages are good for dealers because it makes ordering mass quantities of cars easy, keeps orderers from forgetting items that are popular by accident, and it is cheaper for GM.

BUT...

What I'm wondering is not why they created option packages, but what was the move behind adding more equipment to the car and then discounting the sticker??? Like I said, the person who didn't order the power stuff is the one that gets penalized with a higher price, for stuff he didn't want!! How does that make any sense??

Why didn't GM just lower the base price and then make the option packages extra, not a credit item?? It would have allowed those who wanted more basic cars to get the cheapest car possible. Since when should someone have to pay MORE to receive LESS? I see your theory on packages being cheaper for GM...I just wonder why they priced the packages the way they did.

 

here's an illustration... its 1989... 10 people walk into a chevy/pontiac dealer and see GTA or IrocZ in the showroom. 5 of the 10 want all the power options available, 4 want some of the power options, and one wants a stripper with the L98 and nothing else. Now multiply this by dealerships, and pretty soon you've got a large number of people that want power options and next to none that want to crank their own windows. So when GM goes to order those parts (either parts from a third party, or bare metal to machine the parts, etc.) if they order say 200 power window motors they will get a bulk price, same as when a group of people have a group purchase here. When buying in bulk you get a discount cause the tooling is already setup, its a simple process, just repeated several times.

Not to mention by giving the masses what they want they'll be happier with thier purchase.

 

Drew is correct, GM did it to make more money on each car and to make life easier for them. Still interesting combo's were available. I have an 87 IROC with leather interior, power antenna, t-tops, g92, auto, option level #2, I never understood why cruise wasn't available with option level #2. My car does have cruise, but it's probably a dealer install.

 

I think you've misunderstood something here. When the window sticker is advertising a savings of $1,200, what it means is that if you had ordered each item in the preferred option package separately, the total cost would have been $1,200 more than what the option package cost is. To advertise it as a savings is somewhat of a misnomer, because once GM started packaging options like that, you couldn't have ordered every option separately even if you wanted to.

 

Mirsiro, I understand what you're saying, and that's what I originally thought too...that there was a savings of $1,200 over individual options alone. However, when you ordered this 1SB package, you didn't pay MORE, you paid LESS than if you hadn't ordered it at all.

For instance, when I order an '02 Grand Am GT for stock, for $1,500 I can get the "Sun and Sound" package, and get a "savings" of $600...meaning the overall package cost $900. But in this case, the car is CHEAPER when you order the package, not more expensive. That makes an optioned car cheaper than a base car...at least these days, that NEVER happens...which is why I found this interesting.

labrat, on the '89 Formula I am buying, mine doesn't have cruise either!! Odd that I got PW and PL, but no cruise. My '89 Camaro had cruise and PL but no PW...you're right, interesting combos were still available

 

You're the one who orders cars for a living, so I'll have to take your word for it, but it just doesn't sound right to me. When the "Sun and Sound" package costs $1,500, and it lists a savings of $600, I take it to mean that the original (or individually ordered) price is $2,100. There has to be some kind of misunderstanding here, GM would not sell a well optioned car for less than a "stripper" version of the same model.

 

Lacking cruise isn't that big a deal, in most cases it wasn't included except in the high end packages... but if I remember correctly it was available as a stand alone option. Both my 1SB Iroc and my 1SC V6 bird don't have cruise, by my 1SB Formula and 1SC RS vert do.

 

Drew,

My (hehe, I love calling it "my") Formula being a little older than yours did not have cruise included in 1SB...my 1SB V6 RS of the same year did however (at least I think the RS was a 1SB car...I have to check to make sure. I know it was "Preferred Equipment Group #2). Cruise indeed may have been a stand alone on the RS...I'll check the window sticker.

Mirsiro,

Now you see my point!! The better equipped versions WERE cheaper! That Grand Am example I gave...the package is $1,500, then you get a $600 discount, so the net is $900. On this '89 Formula example, the package was $499, but you saved $1,200, so there was a net of -$700!!

This is why I said now it makes sense why so many Formulas I have seen throughout the years had PW and PL. When I order my duplicate window sticker for it through PHS, I'll see if it shows this discount. In one of my Firebird books, the above case is EXACTLY what I have spelled out...

 

My problem is the cruise control isn't listed in my rpo codes, and also not listed on my window sticker. I'd love to find out if it came from the factory that way; it would make the car worth at least $11,000,000

 

Labrat ....... You might also try checking for the Code: WS1 or similar package code.

This would have been a package:

CC1 ~ Removable Glass Roof Panels (T-Tops)
N33 ~ Tilt Wheel Adjustable Steering Column
K34 ~ Electronic Speed Control w/resume

.... that would have included the cruise.

 

Jason,
First let me say that I hope you're not getting ticked off with me over this discussion. Your liberal use of exclamation points leads me to think you might be getting angry with me, and that's not what I'm trying to accomplish here. Having said that, let me try to clarify my thoughts on the matter at hand.
I looked on KBB.com and sure enough, it mirrored what you said about a discount on the option group. I don't think you can apply what GM does now, in regards to vehicle pricing, to what they did ten to twelve years ago. What I read on KBB.com said that the price of the option package reflects a discount of $600, which of course means that the price you pay is $600 less than the original price of $1,500. With the 89 Formula, you are telling us that it states that there is a $1,200 savings with the option group being priced at $499. What this means is that if you ordered separately every option that is in the option package, it would cost $1,200 more than what the package costs. What I'm saying here is that there is a difference between a "discount" and a "savings", and the two terms are not interchangeable. You have to admit that there is no way that GM would give options away for free, much less pay the customer to take the options. As i said before, you can't apply the pricing methods and terminology of today with those of ten to twelve years ago.

 

Mike, I've done research and also posted my lack of rpo code for cruise. I've come to the conclusion that on a 87 iroc, cruise was only available with option level #3. I have option level #2. So the best explaination is a chevy dealer install, probably at time of purchase, the buyer really wanted cruise but didn't want to pay for option level #3, so the dealer installed cruise for the customer on an option level #2 car

 

Mirsiro,

My sincerest apologies if it appeared I was getting upset. I did not mean to come across as if I was mad...I just like to use exclamation points a lot

Anyways, I totally understand what you are saying. Let me clarify what I have read.

Base Price, 1989 Formula Firebird: $13,989

Add: 1SB content package 499

Option package discount 1,200

Total price of vehicle $13,288


I know this makes no sense, but this is what this book (and a very informative book that I have yet to prove wrong!!!) is saying. It lists the 1SB package as being a $700 credit overall. This I am not misreading...when it shows the price of the package, it shows it as ($700), which for those of you unfamiliar with accounting terms, means its a negative #. It also says the package costs $499, but then $1,200 is removed from the sticker.

If I am reading this wrong, my sincerest apologies. I Will post the page when I get home from the long weekend. But I remember when Hot Rod did a budget buildup of an '89 RS 305, they ended up with a loaded car rather than a stripper because the loaded car was less. I'd be happy to post that too...

Sorry for all the confusion. If someone knows I'm wrong for sure, please speak up

 

Jason here is why. Remember how the dealerI worked for was ordering cars??? Or what about Dillion in greenfield??? A Hd with out posi? The do this to make it atractive for dealers to order cars the way GM wants em built. Just like when you go into voms and your allocations are set. If you do not go in and change them the cars are COMPLETELY loaded. Reason being is more $. The discount also persuades customers into wanting these options. Who is gonna say no to extra stuff that saves em money? The G/A package like you point out is for the person that might want a roof or chrome wheels or even better stereo. That is for specific people. That package was geared towards everyone and wanted the cars being built one way and one way only. Also at most dealers it is managers who order cars. They are there to make deals not knowing what people want. You and I are very lucky and rare in being able to preferance the cars. As for someone who doesn't know the car and needs to order some, are they gonna order a more loaded one that cheaper or a strip down one that is more expensive. Geeze you have been going through common training Fun huh? Ask for the Voms book and that will pretty much sum up why they did what they did.

 

I cant figure it our either, GM was just generous in the 80's!