Buy a gas guzzler, get a gas-sipper free
Posted
Jul 29 2008, 07:42 PM
by
Karen Datko
Rating:
Call it a desperation move or marketing genius. A Florida car dealer is offering a free energy-efficient car when customers buy a big truck or SUV.
BOGO in the showroom seems to be working. Dealer Jack Holcomb at New Smyrna Chevrolet in New Smyrna Beach said he's generating interest in his previously shunned gas-guzzling inventory. (And, as you'll note by reading the comments section below, it's not a unique idea. Readers are reporting similar promotions across the country.)
We already knew that this is a great time to buy if you really need a big vehicle, because a lot fewer people want one -- or can afford the gas for one -- and the prices have dropped. Meanwhile, the auto industry -- better late than never -- has switched its priorities from making trucks and SUVs to more fuel-efficient sedans. Here's a factlet for you: The sale of Hummers dropped 60% in May, according to Wired.com.
"The SUV as a lifestyle choice, as a personal statement, is dead," industry analyst Aaron Bragman told Wired.
So, what's an enterprising car dealer to do? Make lemonade out of ... um, leftover inventory. Dealers aren't giving away cars: The catch is that you'll pay sticker for the SUV, or that the thrown-in car is a short-term lease, or that you'll have to finance through the manufacturer. With rebates and manufacturer-to-dealer incentives totaling as much as $9,000 on some 2008 Dodge trucks (and nearly that much on many, many other models), it's not much of a stretch for dealers to dig a little deeper and throw in something like a $10,000 Chevy Aveo, just to move the metal and avoid the inventory costs.
This reminds us of the California developer's limited-time offer of a free townhouse to anyone who bought one of his San Diego-area McMansions.
It's not the first time car dealers have advertised freebies, such as the Missouri dealer who provided a free handgun or gas card with the purchase of a vehicle. (Most people took the gun.) The offer of a free car has come and gone over the years, but seems to be catching on again. We've read that at least several Nissan dealerships, with the help of Nissan Corp., have a deal similar to Holcomb's.
Cfnews13.com said this about the Chevrolet dealer:
Holcomb said the profit margin may be lower, but added once the economy improves, repeat customer traffic will improve as well when they remember the dealer who gave them two vehicles for the price of one.
