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One of the most common misconceptions among car buyers, it seems, is that cars cost more than they are worth. What’s even more common is the assumption that car dealers are ruthless sneaky people whose sole purpose it is to prey on clueless consumers. This assumption is not a commonplace occurrence.
According to a recent online survey conducted by JD Power, 36% of customers believe that car dealers in Canada make more than $3,000 per new vehicle sold. About 26% believe that the said amount is between $1,500 and $3,000. Believe it or not, both of those estimates are dead wrong. According to JD Power and Associates’ Power Information Network, the actual number is $1,161 in Canada. This means that there is a significant chunk of consumers who overestimate a car dealer’s profit.
While this may seem like not a big deal, I would argue that this sort of mentality is harmful to the auto industry as a whole. It’s harmful to the manufacturers, the dealers, and at the end of the day, it’s harmful to the consumer. Why? Click here to read more and find out.
How our outlandish price expectations threaten the auto industry
How our outlandish price expectations threaten the auto industry originally appeared on Autoblog Canada on Sat, 19 Jul 2014 20:00:00 EST. Please see our terms for use of feeds.
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