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Old 03-01-2015, 10:41 AM   #7
XDCX
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Join Date: Nov 2007
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Quote:
Originally Posted by mryan55 View Post
I only think of this because the two facing Nissan dealers in my immediate market often seem to sell a lot of units at the end of the month, even if there isn't traffic...

The also seem to always have large numbers of model year old vehicles with miles, and from what I hear they are usually pretty big losers on the front end. Robbing Peter to pay Paul in a sense, but I don't fault them for taking advantage of a program that helps dealers cash in.
I agree and I guess it's good that Nissan might be giving their dealers the option of dumping cars into DRAC to hit a Dealer Cash objective. The tough part is I'm sure the DRAC units would be added to the next Dealer Cash objective and the dealer would face the same quandary at the end of the next program.

Quote:
Originally Posted by mryan55 View Post
FCA actually allowed a C, D or E dealer to count up to 8 Chrysler 200 loaners as retail back in late 2014 (A and B size stores could count 4 if I recall) with the only stipulation being holding the car for 90 days before retailing. I didn't do any since the wouldn't be DRAC units for me store more than they would be abused loaners give out to anyone who asked.

I would also be worried that if we did the 200 DRAC program and sold one on day 91 that corporate audit would look for any way to get the incentive money and volume money back.. since the normal rule is 180 days. Of course, other dealers smelled this to so FCA actually issued a written adjustment to the policy.
I actually like programs like the one you described. I always figured the program's not for everyone but if a dealer has the resources to manage the DRAC cars and can create a source of used cars that can be perfect flip vehicles - it can be a "win win" for both the store and the factory.
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