3 ms·
Yea, neither am I: Grandpa had a Ford dealership until about 5 years ago, his son ran the service department. My uncle on the other side currently sells cars f
by fancyketchup 13y ago
Yea, neither am I: Grandpa had a Ford dealership until about 5 years ago, his son ran the service department. My uncle on the other side currently sells cars for Honda. I'm well-versed in the car business.
I'm not sure how your comment contradicts mine. If you get a $100,000 bonus for selling a vehicle, the marginal profit on that vehicle is damn near $100,000. Dealerships don't sell cars for a loss. Of course, that doesn't help the consumer unless the consumer wants that particular model, with the particular options that need to be sold to get the bonus.
- sixQuarks 13y agoOK, now you're just using semantics to change your argument. Regardless, the stair-step incentives is just ONE of many examples I can provide. The backlash against TrueCar's initial business model showed there were some dealers selling vehicles for below cost, in hopes of making up the difference with add-on sales. Whether these dealers made up the profit difference on the whole does not change the fact that at least some of those customers purchased vehicles at a profit loss to the dealer.
- fancyketchup 13y agoAnd I quote: "[...] chances are you will get a zero-profit or even below-cost deal on your new car" Let's say I'm a car dealer and I need to sell one more car to get my bonus. Let's say that car cost me $20,000. Let's say the bonus is $100,000. Now let's say I give away the car for free. I still have $80,000 more than I started with at the beginning of the comment.