At times we make mistakes on ordering too many vehicles, or our manufacturer overbuilds on certain models. Our manufacturer wants to clear out these models allowing us to order more units. However, we will not order if we already have too many in our inventory.
Therefore, the vehicles receive additional discounts from the manufacturer, and the selling dealerships put an extra discount on top of the manufacturers’ discount to clear them out.
You win by getting a greater discount, and we win when we clear out some old stock that is costing us money to stock.
Dealerships provide a demo to a customer wanting to purchase a new vehicle and a loaner when a customer comes in for repairs on a new vehicle. These vehicles are written down because of the mileage on them, and these discounts provided to the customer are posted on Deal of the Month.
Sometimes we over appraise a vehicle we are going to take in trade, or we missed some items on the appraisal and spend extra time and parts reconditioning the vehicle. We then must sell the vehicle for less, and you win by getting a vehicle that has all these new parts in it that is worth more than the mileage on the vehicle.