Now that sales of new cars and trucks are slowing down, automakers and their dealers are starting to lop thousands of dollars off sticker prices — sometimes slashing the final cost by a third — a sales tactic
that helps consumers but has led to industry troubles in the past.
Such discounting helped push the industry into crisis, and G. M.
Mr. Lutz’s franchise is offering a gray 2017 Dodge Challenger coupe for $27,900 — $6,680 under its list price — thanks to an incentive program
that Fiat Chrysler Automobiles ran last month allowing dealers to discount the price on certain models by up to 20 percent.
Bomnin Chevrolet in Miami is selling a white 2017 Colorado pickup truck for $16,481 — $7,594 below its sticker price —
and a 2017 Trax compact crossover for just $14,000, a discount of $7,700.
Or they give dealers discounts tied to aggressive sales targets, a practice
that sometimes results in very little profit for dealers while preserving the manufacturer’s margins
As the industry rebounded over the last seven years, automakers had been careful
to limit pure cash discounts and try more subtle ways of offering deals.
Luxury brands are also cutting prices but tend to offer smaller cash discounts and limit them to certain slow-selling models.
Discounted Cars Benefit Buyers, but May Spell Trouble for Industry -
Big cash discounts are making a comeback in the car business.
The trucks, S. U.V.s and other roomy vehicles that Americans favor these days are also being offered at bargain prices.