28th May 2009

Chrysler dealers making more money

posted in Daves Blog |

Here's something that sounds a little counter intuitive, to say the least. Edmunds.com has found that Chrysler's terminated dealers have actually managed to make higher profits on heavily discounted stock.

Edmunds.com says in a release: 'Despite the terminated dealers selling vehicles at a unusually high discounted rate, overall profit margins for Chryslers dealers actually increased in May.   How could this be?   There is an intuitive logic around the idea that vehicles purchased from a bankrupt automaker must be a great deal.  Consumers accepting this logic actually negotiate less aggressively and pricing trends up.' 

So, don't forget to negotiate on that great deal...


This entry was posted on Thursday, May 28th, 2009 at 10:22 am and is filed under Daves Blog. Original contribution by David Leggett's automotive industry blog - from just-auto.com. Responses are currently closed, but you can trackback from your own site.

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