Dodge to cut back on greedy dealerships

[jptxchallenger]

I heard this from an insider with Chrylser and they said that the 1st of the year 2009 they were going to possibly announce cutting some dealerships and they were looking at how some handled the sales of the Challenger as a way to gauge good and bad.
Has anyone else heard this yet?

[JonW]

They can't use the sales criteria from one car as the basis of terminating a dealership. Chrysler has previously announced that it wants to combine C-D-J dealers and will eliminate overlap in their product lineup. But this is voluntary, and Chrysler is not forcing dealers out, nor are they participating in the dealer buyouts.

[challygirl]

No, I have not heard that. But I did complain to Chrysler about the price gouging and got a prompt reply. They said that they could not control the dealers, but I have a sneaky suspicion that with all the complaints they have had that they are going to do something about this! Fortunately, My husband and I made a deal with Ray Brandt dodge in Harvey, LA., that was great. We now own a BEAUTIFUL 2008 SILVER BULLET that we just picked up today! Go to newbie section to see it. I really hope you have the same luck as we did! Trust me, we will still keep our eye on the dealers who are gouging everybody. We hate when they try to take advantage of people!

[Warrior#7]

Congrats Chally Girl!

[09 R/T]

Crap... Well I gotta say I support them in this... But I better call them up a few times posing as different people with nothing but good things to say about the dealership I ordered with haha...

Then I can start calling them with complaints about EVERY other dealership in the world!

[Hemi 007]

Well the dealerships seem to have forgot what dealer incentives are.

[Go Goody]

Or that it is the customer that keeps them in business!

[09 R/T]

My dealer has been pushing them for the lowest price possible to get as many sold as he can. These guys get bug discounts when they move larger volumes.

[SRTpusher]

Originally Posted by 09 R/T

My dealer has been pushing them for the lowest price possible to get as many sold as he can. These guys get bug discounts when they move larger volumes.

not any more...

[SRTpusher]

Originally Posted by Hemi 007

Well the dealerships seem to have forgot what dealer incentives are.

Here I go...


the factory has squeezed margins to a point where huge discounts are not as easy to come by. aside from pickup trucks, the markup on a vehicle is very slim.

caliber may have a $500 - $1000 markup and a $600 hold back.

a 2009 srt-8 challenger has about a $2600 markup and around a $1400 hold back. that is a $4000 profit on a $45,000 vehicle - in round numbers. not even 10% margin on a performance vehicle that even the factory won't put a rebate on. this vehicle is not primary basic transportation. if you want one at a lower price, you have every right to shop around.

people sell the nintendo wii on ebay for huge markups - i wonder if people are telling nintendo they should do something about that? i didn't - i had to buy my wii setup off of ebay because the retailers DIDN'T mark them up. the price at the register is lower than the market value, so people buy at a retailer and then resell for a profit and there are none in my area to purchase at a store. now if best buy would have marked the thing up to the point that the potential markup by a reseller would put the item out of its market value, then i would have bought it from the bricks and mortar.

i guess it just miffs me that because someone sells a product for what the market is willing to pay, they are called greedy. we live in a capitalist society. if we were charging too much for a vehicle, then we would have 9 Challengers sitting on our showroom right now. We have one that is still here - only because the buyer is out of town.

i also wonder if any of you who see dealerships as greedy benefitted from the housing market? when your "greedy" neighbors were selling houses for tens of thousands more than they were worth thus raising the price of your house by no other means that people were willing to pay more money for something?

the only difference is that the auto industry has the gov't mandated window stickers and houses don't.

well end of rant as i need to go sell another car at my "greedy" dealership


PS - i sell many vehicles and make great deals for people every day - please do not think i am in this to "rip someone's head off" -