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Old 10-23-2014, 10:55 AM
sloride sloride is offline
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Join Date: Aug 2012
Location: Northwest Indiana
Posts: 11,216
Quote:
Originally Posted by HuskyMan View Post
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.
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.
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