|
In Reply to: Free Enterprise posted by Z8 Bob on August 01, 2000 at 12:57:56:
I don't think it's very short sighted to do so.
If you are a rich customer who buys and trades in car every year, then sure it's better to kiss up to you and give you deals on purchasing, while making money when you trade them in.
But in general, for people who leases a car every 3 years or buys a new car every 5 years, why would a dealer give up the oppotunity to make $100k on Z8 instead of banking on you come back to them every 3-5 years(while they don't make much anyway when you come back since they don't sell over msrp to you)?
Dealer has a lift span, they only live this long and work this long, so they try to make the maximum while they can, a $100k mark-up on a Z8 is worth selling 30 other cars below msrp to a loyal customer, but really how many customer buys 30 cars from the same dealer?