Wednesday, February 15, 2012

What incentives do auto dealers get from car manufacturers like GM and Ford? How are these deals structured?

What incentives do auto dealers get from car manufacturers like GM and Ford? How are these deals structured? Do the manufacturers gives the dealers a percentage of each car sold? Do they give them some kind of money back guarantee or what?What incentives do auto dealers get from car manufacturers like GM and Ford? How are these deals structured?The basic deal structure:

Manufacturers set the maximum value of the vehicle which a consumer will pay (MSRP).

Dealers purchase cars from manufacturer for less than MSRP.

Consumers and dealers work out a price to pay for the vehicle.

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