From Chapter Three:
How Rebates and Rental Cars Cost You Money
. . . More Than You Could Ever Imagine
“There is nothing so useless as doing efficiently that which should not be done at all.”
—Peter F. Drucker
Writer (1909–2005)
Writer (1909–2005)
"Some vehicles today have but $600 in factory-to-dealer markup. Kia’s new Forte model, built as a replacement for their Spectra model, has just $550 in total markup between dealer cost and MSRP. I have sold the Chevrolet import-fighting Aveo model, which provided less than $400 in total profit before expenses to the dealership. Who cares right? You should. Why? Because if you spend all your time negotiating discounts off of those kind of numbers, you are setting yourself up for the financial penalty of the rest of the story. What is the rest of the story? Read on.
"How many consumers have purchased a new vehicle on Monday, then found out the rebates went up on the following Saturday? I have seen a particular product’s rebates go up or down as much as $7,500 in that short time. I’ve delivered vehicles in that scenario, when customers lost money by being a little too early or late buying their new car. Of course, there was no way either the customer or I could predict whether factory incentives would go up or down, because that information is kept secret by automakers. The only information released by manufacturers is the current incentives available and an end date to the program.
"Consequently, consumers play Russian roulette when buying rebated products—most vehicles on the market today..."
