New Discount Plans May Signal a New Dawn in Consumer Car Buying

Snide’s Remarks: What is with all the hubbub and the experts surprise at Detroit’s latest method to instill trust and provide consumers with enticing sales prices?

For years we have been shouting (to whoever would listen) that the American buyer really wants and needs just one thing…to believe that they have not been raped as they drive their just delivered new car home from the dealer.

Our understanding and belief is that the retail auto business is one of the last bastions of “horse trading” with neophyte buyers (that’s all of us…) always wondering whether they have been treated fairy and squarely on not…until Now!

These family plans allow buyers to believe that they really got a fair price, and that's all they have been asking for…just treat me like you would a family member… now they are, and have responded with opened wallets and smiles on their faces…for American built cars no less, hey Detroit don’t ever let the dealers screw their customers and ruin your business ever again.

This "family" thing may also be an example to the dealers that honesty is a better policy, and that a new a paradigm in retailing cars may be at hand.

The manufacturer’s must continue to sieze this opportunity by changing an antiquated convoluted wholesale pricing structure, where the MSRP or invoice pricing reflects a starting price not a sales price.

Will we soon see the day of a fair and honest new car One Price Policy? Where the decision to purchse is bsed on the merits of the product, not on the dealers sales efforts. Hey this may just lead to the ablity of the consumer to actually buy a car on the web...oooh boy!

Let me know what you think, msnide@theautochannel.com

Visitors Comments

Here is what JN thinks:

Sir,

An interesting assessment of the auto industries pricing models (many).
However, as you are most certainly aware, the current programs in some 
instances do not offer the value of the previous rebates/incentives 
offered in the months leading up to the "kumbaya.... we are all one big family" 
programs.

This aspect...as it becomes known will only further cause mistrust and 
skepticism among the retail vehicle purchasing public.

You are correct that the OEM's have a window of opportunity and some dealers 
are voicing concern about the future of unit pricing; believing that this is 
the first step in the OEM's attempting to establish  a more "reasonable" 
pricing model.

The next year will be an interesting one. If the Asian and Europeans do not 
follow suit the infighting will be interesting as well.


JN