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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: ild who wrote (20637)	10/25/2004 9:59:01 AM
From: ild	Read Replies (1) \| Respond to of 110194

Car Dealers Give Away Free Car With Purchase Of SUV-Report DOW JONES NEWSWIRES October 25, 2004 9:49 a.m. DETROIT -- It's the ultimate consumer incentive - buy one, get one free. Now car dealers are using the ploy to attract new buyers. The Detroit Free Press Monday reported that car dealers have figured out that they can give away a low-priced car if customers will buy a truck for full price. Several dealers interviewed by the paper said they make the deal work by asking buyers to sign over their rebates to the dealership, letting the dealership still pull a profit on the vehicles. Buyers must also finance their cars through the carmaker's financing arm. Rebates on 2004 models have been about $4,500 for SUVs and $1,500 for compact cars, with an additional $1,500 bonus when financed through the carmaker's financing units. The deals are helping car dealers move vehicles off their lots in a time when inventory levels are higher than normal. Car dealers pay financing fees for every car that sits on their lots, so some are willing to take losses on some vehicles so they can stop paying financing on it. One dealer told the newspaper that he offered the deal until he ran out of Chevy Aveos, and then he offered it again with Chevy Cavaliers, which he also ran out of. The deal also helped bring in customers who ended up just buying one car.