Many buyers of a new car will use some form of finance package often provided by the dealer or by a friendly broker who specialises in this type of loan. These are relatively straight forward, the finance company knows the retail price of the vehicle (including any extras fitted to the car) and can assess the credit worthiness of the buyer. If the price matches the buyer's … [Read more...]
Auto Makers Try to Reduce the Cost of Sale
A while back I wrote an article about Tesla's foray into direct selling: the process of selling direct to a customer without using a sales channel. This potentially makes the cars cheaper to buy and cheaper to sell because the auto maker does not have to add in a dealer margin to each car sold and it reduces the opportunity for a buyer to negotiate the pricing - it won't stop … [Read more...]