Quote:
Originally Posted by OUR72GTO
It is not meant to "save ' them money.....
It is intended to lower the competition between them for less buyers thus increasing the profitability. As we will be paying more because the dealer "down the road " is gone.
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I'm not so sure. It will clearly make the allocation and the logistics simpler for GM. The transport that currently has 10 cars, divided between 2 dealers might only have to go to one. Fewer dealers combined with the reduction in name-plates will allow for more trims to sit side by side on lots. So instead of having one LS and one 2SS on one lot, then a 2LT and a 1SS at another, all 4 could be in the same place.
You might have a point with the individual dealers, but I don't think GM see any of that money. They sell a car to the dealer who sells it to you. The dealer doesn't hold the car and then send GM a cheque for 75% of your transaction total. All that aside, it might make some dealers more willing to accept a deal from you. If they move a higher volume there is less (
less, not
no, less) pressure on them to suck every last penny from you -its better to make $3000 twice than $4000 once. After all, there are sill Ford, Dodge, and Toyota dealerships just down the road too.