Quote:
Originally Posted by HuskyMan
Back in the day, a demonstrator was provided to the new car sales professional for two reasons:
1. The new car sales professional would have a current model/year vehicle to use to take prospects on test drives in hopes of selling either the demonstrator or a new car. It wasn't unusual for a competent new car sales professional to sell three demonstrators before noon.
2. Providing the new car sales professional with a demonstrator give him/her a sense of ownership in the brand (Ford, GM, etc.). They were seen driving a new car of the same brand they were selling when out shopping at the grocery store as an example. If they were selling Fords and their PERSONAL car was a Chevrolet and one of their customers saw them at the grocery store driving a Chevrolet, their credibility was SHOT to HE**.
I personally experienced this recently. I took a test drive of a new Mercedes Benz. After the test drive, I had to ask the sales professional for their business card (The FIRST thing you do is give the suspect/prospect YOUR business card as you introduce yourself - the suspect/prospect should NEVER have to ASK for your business card). After the test drive I asked the sales professional which model Mercedes Benz he drove??? Answer: "I don't own a Mercedes but I hope to one day".
Back to your statement; if the sales professional quits/resigns or gets fired, the demonstrator is returned to the dealership. The use of the demonstrator is nothing more than a sales tool so the sales professional can sell more cars. It doesn't represent "income" to the sales professional because if they quit/resign or get fired, the demonstrator is returned to its rightful owner, the dealership. Of course, the sales professional may negotiate a great price on a purchase if they wish. If they purchase the demonstrator the car then becomes THEIR personal ride and should not be used in business.
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In your eyes, and mine that is how it is seen. in the eyes of the money grabbers it is a different story. That is why I started my post, with how the original post started with back in the days. Gov't wants to know why a 25K car sold for 20K someone has to pay.
Real Quick scenario:
Model year 2016 Buick ABC. MSRP 25K cost to dealer 20K
Buyer agrees to pay dealer 19K w/ 1K cash on the side for a brand new (called demo) vehicle.
Dealer writes off 1K loss pick but picks up 1K tax free.
Dealer makes a little on financing and hits the Mfg. for some warranty charges while in the demo program (never performed 100% profit)
Buyer got a 25K vehicle for 20K full warranty, saves say 8% local sales tax on say 5K= $400.00 not going to the money grabbers. (They are pissed about that injustice)
Not sure that is why those practices are no longer there but possibly.