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Originally Posted by ROBZ 28
THIS SUCKS. NO ONE HAS YET EXPLAINED TO ME HOW THIS SAVES GM OR CHRYSLER. DEALERSHIPS ARE INDEPENDANTLY OWNED AND OPERATED. WE PAY GM FOR THE SIGN OUT FRONT OF THE BUILDING.
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I was confused about this too. The explanation I got is that when you have multiple dealers in the same market, they essentially compete with each other and drive down the average sale price for the same vehicle. That makes sense, but what I'm still not clear on is how that affects GM. They sell the car for $X to the dealership, and whether the dealership sells for little profit or significant profit, what's the difference to GM?