United States

Why does a dealership charge more for the same car? Dealer group chair has an answer

If you’ve wondered why the prices for similar cars at different dealerships are sometimes far apart, the head of a national trade group for auto dealers can offer one explanation. And he says the practice is a bad idea. During a talk in Detroit this week, Mark Scarpelli, chairman of the National Automobile Dealers Association, blasted so-called stair-step incentive programs (where dealers get cash from automakers for meeting sales goals) as programs that ultimately hurt brand loyalty. Scarpelli told a group gathered for an Automotive Press Association luncheon at the Detroit Athletic Club that stair-step incentives can lead to “wild discrepancies” in prices between dealerships, which can destroy customer confidence in the sales pr ...