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Old 11-24-2015, 09:52 AM   #4
DealerEx
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Join Date: May 2009
Posts: 548
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Quote:
Originally Posted by mryan55 View Post
Unfortunately this is what comes along the stair-step incentives! I always have to wonder "in what world is falsifying a sale or even purchasing the vehicle to use as a service loaner worth it for getting $20k in volume incentive?"

I have only once even purchased a new car for used inventory to use as a loaner... and that is only because the vehicle sustained $10,000 damage on the lot and had a bruised Carfax after the police report.

Thankfully it's not one that helped my hit my number or anything.
Buying a vehicle or "giving a few away" to hit a quarterly incentive number is not at all uncommon among large volume stores in my experience, and it's a lot more than $20,000 at stake most of the time. Got a buddy that has a store selling 100+ units a month that I know has done it several times. For example on a 90 day stair step incentive retro to first unit at different volume levels. last week of the 90 days, he's at 100% level paying$1,000 per unit and is just 10 units away from hitting $1500 at 125%...those 10 units are GOING to be sold to friends or family members at a huge discount...maybe with the agreement that they will buy them back in 30 days at the discounted price. that's $500 per unit back to unit #1...comes up to $150,000+ difference on the payment. Give'm away at $5k back of cost and make an extra $100k net.
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