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Retailing new vehicles is unprofitable for most dealers, with the average car sold for a $735 loss as of the latest data. Consumer adoption of online shopping sites forced dealers to lower retail margins as buyers pursued the lowest prices. New car pricing is another cause, with the average sale price reaching $36,000 in 2018, up from $31,000 in 2012.
Given the cost of meeting brand standards, many industry observers question dealers’ rationale for pursuing incentive income, but dealers explain that non-participation has disadvantages. They face reduced inventory allocation, less access to more desirable models, and the worst consequence of all — reduced competitiveness with same-brand dealers. If one dealer in a market agrees to take the automaker’s money, then others must follow to match their competitor’s pricing.
Make me an offer, heaven
Almost like people dont have enough buying power for all of these new vehicles.
Explains why Tesla doesn’t want them.... Not to mention they’re really just fronts for expensive repair shops. 1st scheduled maintenance for a Tesla? 100,000 miles.
I wonder how come India and US have same set of economic issues right now 🤔