Interesting.... My family were car dealers for 60 years.... and the
major dealerships had what was called a 'hold-back' from every
vehicle. It basically was approx. 3% of the dealer's profit. 1% went
into the dealer's account to cover leases/etc.; 1% went into something
else I don't recall just now.... and 1% went into a regional pool to
cover the cost of regional advertising. So when ads ran on TV/Radio and
mentioned
multiple dealerships of a particular brand, that ad was paid for out of
the regional funds that were managed by the regional office. So I think
it's
funny that this is being done in some areas...just another way to make
more profit.
Last time I got a car I told the dealer that I didn't want all the gook
stuff he had on it in the lot so he could order me one directly from the
factory without all of it or I was going elsewhere. They decided they
wanted to sell the one on the lot (reduces their inventory carrying costs)
so they dropped-off the cost for the stuff but because it was already on
the car I got it anyway...
I suspect they're hurting and it costs them money to have a vehicle
sitting on the lot...
Penney, John wrote:
> Well, Kent and guys, to put things in perspective re dealerships to blame etc., WA state is the home of the (in)famous "second sticker" which is a document made to look like the MSRP sticker, glued next to the actual manufacturer's list price etc. It charges for the things that Ray Shahan discovered like pinstriping, etc. etc. but also such delicacies as "extra dealer profit", "Pacific Northwest Market Adjustment", etc. and it too adds up to extra thousands of dollars. FWIW IIRC YMMV
>
> Happy Friday from Olympia!
>
>
> John M Penney
> --- On Fri, 2/20/09, Kent Wallace <[log in to unmask]> wrote:
>
> From: Kent Wallace <[log in to unmask]>
> Subject: Re: [HP3000-L] OT: Are dealerships to blame for slow car sales?
> To: [log in to unmask]
> Date: Friday, February 20, 2009, 3:32 PM
>
> American labor cannot compete with countries that pay there labor small
> amounts of money and give no medical. There are a lot of places with
> cheap labor.
>
> Last I was to a free trade zone (UAE) they were bringing in Labor for
> 75$(Hopefully more by now) a month from India. You fed them, provided
> clothes and medical (very cheap).
>
> I understand that when a Union Detroit auto manufacturer was laid off he
> could draw 80% of his salary for years.
>
> The end result of high wages is unemployment, unless you bring in new
> technology.
>
> A lot of people with skills that are not marketable are going to be out
> of work in a little while in the US.
>
> Now what I am not hearing is what the good economist are preaching at
> this time. Milton Friedman is dead, I really like his philosophy.
>
> "I am favor of cutting taxes under any circumstances and for any excuse,
> for any reason, whenever it's possible."
>
> Milton Friedman
>
> I guess he died in 2006?
>
> Nancy Peloci put together this economic stimulus package??? What is her
> degree in?
>
>
> I ramble on....
> Kent
>
>
>
> I love this one
>
>
> "I'm in favor of legalizing drugs. According to my values system, if
> people want to kill themselves, they have every right to do so. Most of
> the harm that comes from drugs is because they are illegal."
>
> Milton Friedman
>
>
> -----Original Message-----
> From: HP-3000 Systems Discussion [mailto:[log in to unmask]] On
> Behalf Of John Lee
> Sent: Friday, February 20, 2009 1:07 PM
> To: [log in to unmask]
> Subject: Re: [HP3000-L] OT: Are dealerships to blame for slow car sales?
>
> Detroit needs to consolidate into one or 2 automakers, sell off valuable
>
> excess assets to recapitalize, and come out lean and mean. I don't
> think
> they need any taxpayer assistance to prop up outdated factories and
> policies. There's a new world order, it's time to recognize it and
> adjust
> to it.
>
> John Lee
>
>
> At 03:52 PM 2/20/09 -0500, Pickering, John (NORBORD) wrote:
>
>>> Once they nationalize the banks, car dealers will be next.
>>>
>> Remember, "What's good for General Motors is good for
>>
> America."
>
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> 2/20/09
>
>> 7:26 AM
>>
>
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