Are You Serious

  The Car Business is Slow, But it isn't THAT SLOW!

Yesterday, for the third time this week I had a customer offer to buy a truck on our lot if and only if we would take another $7,000 off the price.  Mind you at the moment we are selling our cars and trucks at employee prices and then the customers get the rebates.  So we are selling the trucks for less than we own the trucks for and then Ford cuts us back a check for selling the vehicle.  The money that Ford gives back to us is somewhere between $500 and $2500 depending on the vehicle.  So if we took $7000 it would COST US at least $5500 to do this.

ARE YOU SERIOUS?!?!?!?!

Itstarted on Monday when we tried to get a 2008 truck from another dealership.  We do not have any 2008 F-150's left on our lot, because we are sold out!  It ended up that we could not get the truck from the other dealership, because they sold it!  When we tried again to find another truck that met the customers needs, there was not one available, the Midwest was SOLD OUT!  The customer became irate because we couldn't find another truck for him.  He argued that we should sell him a new 2009 F-150 for the same price, the price difference was about $6,000.  My reply is listed above, and I asked him why he thought we would even consider it.  He said you need to make sales, your boss will do it.  I kindly (maybe not so kindly) informed him that we wouldn't do it, because obviously we were selling F-150's, we and the rest of the Midwest was sold out of the truck he wanted.  He left saying "I can't believe you won't do it!"

Tuesday, I had a customer come in and drive a brand new F-150, his mom works at the Ford plant in town, and has for 25 years.  He wanted to look at the new F-150, so I showed him some numbers after he drove the truck.  As a Ford employee's son he could buy the truck for almost $10,000 off.  He called back on Wednesday and said he would buy the truck if we would take another $6,245 off.  Where he came up with the number I have no clue.  But again I was forced to respond, "Are you serious?" 

A customer that I have been working with for almost 6 months, he has been looking for a very specific vehicle.  He wants an F-250 Harley Davidson, we have been workingwith him for so long, that the one we have on our lot we ordered for him if we couldn't find the one he wanted before it came in.  When it came in, he kept saying, I want to see what the rebates do next month.  So he can buy this specific truck at the employee price minus the rebates, it is certainly the best deal of the year.  Yesterday he calls me and tells me he will be up on Friday to buy the truck, if and only if we took an additional $7,000 off.  Are you serious?  I told him not to bother.  He said, "You are going to have that truck forever".  I reminded him that we only had 3 2008 Super Duty trucks left, but he still was shocked when I would not take another $7,000.

Why would we take a loss of Thousands of dollars to sell a car? I know sales are down, but losing money is not how you stay in business.  Ford is selling all of their cars and trucks at employee prices and that is less than we own them for.  Our income per car and truck has already been cut to the bone.

Times are tough, but this isn't a fire sale.