It's The Economy Stupid!!!

I just love periodicals and what someone wants to pass off as a news article informing consumer of what to watch for when shopping at your local car dealership.

I read recently an article written for... well for right now I'll keep the news agency's name to myself... But the article's author states in glorious consumer friendly terms how consumers should purchase there next vehicle towards the end of the month (the author is a analyst for a financial services firm) because among other things, that sales managers do not have the pressure of making the sale early on in the month because of end of the month bonuses and inventory pressure from incoming units coming in next month...HUH! This is another lame uninformed individual who has no idea what happens within the confines of a retail auto dealership. AUTO DEALERSHIPS HAVE INVENTORY COMING IN CONSTANTLY... Plus any Sales Manager worth his weight has an early bird incentive at the beginning of the month to jump start his month...or at the least weekly spiffs/bonuses.

The facts are this, auto dealerships are under constant strain to produce DAILY!... not at the end of the month... heck you don't have to be in the retail auto industry to understand sales... a successful retail auto dealership is not going to wait around waiting and hoping that a costumer will come back (be-back is the vernacular that is used in the industry, you get fairy dust with every be-back...FYI) at the end of the month... any sales person worth their salt will make every effort to make a sale happen right now, regardless of the time of month. In addition the cost of holding on to a vehicle when you have a customer in this market who desires the vehicle, far out ways any end of month effort to push the vehicle out the door, the fact is this... the dealership makes more money the less days the vehicle is in inventory... not the more days as the article implies, there is a daily cost associated with the vehicle (floor plan [interest] rate, insurance cost, etc...), in addition to a host of other weighty matters... yes there may be incentives to make bonuses at the end of a month, however in a market where customers are few and far between and an economy that is shaky and individuals not purchasing or leasing many vehicles these days... the incentive to make a sale happen is now!

It's the economy that creates the motivation for the delaership to move inventory... and in this economy every sale every day is important!

I wish the people who knew what they were talking about wrote the national articles, not someone sitting in an office or sitting at there home who has only visited a auto dealership as a consumer... GET YOUR FACTS STRAIGHT OR ASK SOMEBODY....

OK I'm done...

Enjoy Today!

That Car Guy

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