Quote:
Originally Posted by wtwo3
The way I understand it, there are a few situations where a dealer is willing to lose money on a sale. One is if they have a quota to hit which qualifies them for a bonus greater than the loss in profit of the sale.
So for example, let's say they need to sell 100 cars to hit quota which qualifies them for a $100k bonus, but they're projecting to be 5 cars short. They'll gladly take $5k loss on each of those remaining cars to get that $100k bonus. This is typically why you'll get the best deals at the end of a month/quarter/year, when hitting quota is way more important than making a profit on each car.
The other reason I'm assuming is if they see potential for dealer market share growth and repeat business.
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Thanks - those seem to be reasonable explanations. But why Mid year on a MY that has yet to hit the showrooms? Surely dealers aren't pressed to hit quota on cars not even on the showroom floor. Unless the quota is for total cars sold and not specific models. Seeing some of these 9%+ discounts w/ zero incentives really has me doing some soul searching b/c based on my initial communications, I will be ecstatic with 7% on an M50i custom build.