I think this is correct analysis. All ups are by default internet customers, and all salesman are now internet sales consultants. It's time to rethink the game. Building huge BDC or having a " seperate " internet department is not working so well for many dealers.

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Jared, You've hit "my" nail right on the head as far as advertised prices go - it would be great if our industry could simply slap a price on a unit and *that's* the price...kinda like Wal-mart :) Would make things so much easier on both the customer and the dealer. Yet, our industry must take in so many other factors in the buying and selling of cars - customer credit, trade-in value/allowance, add-ons, customer "happy figure in their head," etc. - this all affects bottom line price and what it's actually going to cost the consumer. And much of this is truly out of our hands as dealers. Bait & Switch practices are one thing to grumble about as far as fostering trust with consumers (seen often, unfortunately) but when we get down to it, it all really DOES come down to the customer and 'making it all fit together' for them - sometimes that's just not a possibility...and cited in your post, it's not a possibility up to 84% of the time.

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I do not think these buyers have been pulled ahead. A good percentage of the clunker deals were made because of the program. Most of the clunker customers are not your typical new car buyers.

Ri-dic-u-lous!

The only thing I can think to say is WTF? What\'s next, kids in middle school running the military? How does somebody with no real world experience and no background in the auto industry get to make these kind of decisions. Maybe the dealers that got the termination letter were the lucky ones.

This is a very moving article.

Setting my political leaning\'s aside for now .....Will this accomplish the goal of driving folk\'s to the showroom to buy a new domestic car ? Let\'s play it out ..I\'m driving a 01 malibu with 96k on it . I bought it used , 3 years ago and still owe 3k . I want the new 09 . It\'s 20k . My trade is worth 2k . I get $4.5k from the new GM/\"government motors\" to make a deal ....Chevy may have some incentives at the time let say $1500 . 1.5k plus 4.5k = a total of 6k . My 20k malibu is now 14k . Will I buy ? Personally ..Yes . How about you ? What will this do to the value of those cars sold under the new program ? How will the dealer collect the cash ? Will this bring new tradin\'s to the market ? What happens to used car values then ? Will this create a shortage of New Inventory due to the fact that the teir 1 and 2 supplies may be out of business and not suppling parts need for new car production . Is this really how we want to do business folks ? What happen to the \"freemarket\" where those who can compete profitable survive ? Tim

A program similar to this started last year in Texas with the \"Drive a Clean Machine\" campaign. It offers Texans a $3000 voucher or trade allowance for trading in their old car for a more fuel efficient one. Applicants have to qualify by living in a highly populated county as well as qualify by falling below a certain income level. While I am grateful for the additional sales, the conservative in me doesn\'t like the program because it seems to encourage low income people who have a \"paid for\" auto to incur debt to obtain one of these newer cars at the expense of tax payers. It also piles on a monthly debt expense to the people that can least afford it. Government just sticking it\'s nose in another place that it doesn\'t belong

It seems so simple. Give people a fair price and provide a good experience and you will sell cars. Why do we struggle with this so much in our industry?

This article has deep implications. Cliff Banks did a great job on this column at Wards Auto.

I have heard very little from the UAW about the big three.

here\'s the correct link: http://budurl.com/gqbe

Definitely a great idea- has anyone sent this to the Oval Office yet?

Broken link....