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      11-16-2012, 07:58 PM   #29
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drob23's Avatar

Drives: S4
Join Date: Oct 2012
Location: Michigan

iTrader: (1)

Originally Posted by EnerJi View Post
It's absolutely an F-you.

I have two perspectives on this as to whether I empathize or not. In the case of a rare car on the lot (a 335, an Msport, etc.) then it may be a prudent business decision not to discount too much, as even if it results in one consumer walking, there may be someone else who walks into their dealer an hour later willing to pay substantially more.

It's different when it comes to ordering a car, however. A significant discount should be de rigueur in these cases, as the dealer is guaranteed an immediate sale. The CA shouldn't be unhappy, as they get additional volume that month and are one step closer to their volume bonus. When I visited my local dealers to order my car, none of my local dealers were willing to be anywhere close to reasonable. My best offer was a $2,500 discount off a > $57k MSRP, so I walked and went out-of-state. In my case, I have zero empathy for the local CAs.
I'm just glad not to be in a similar line of work. Is it as simple as you imply on your second point? If it was just sales volume than why wouldn't they discount every allocation until people pulled the trigger? As far as I understand, an allocation is an asset equal to a car on the lot, maybe more valuable since it has the "potential" to be exactly what a customer wants. Furthermore, they only get so many allocations per year. I'm also guessing it's worse to have a car sit on the lot for prolonged time. It's obviously a zero sum game between seller and buyer, but how about within their salesman world? What benefit do they get for selling a car at a higher price vs selling more? Promotions, bonus checks, a bumper sticker?? Clearly I don't know much about sales...