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OK, 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 ag
by sixQuarks 13y ago
OK, 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.