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I do not know if this holds true across all or most brands.
 

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There's a lot of wheeling and dealing going on out there with some brands in order to show "big discounts" on new vehicles, so this doesn't surprise me in the least. Some of the deals clearly are too good to be true, at least for the dealer's bottom line. I believe that the Subaru brand is less affected by this...incentives seem to be things like lower rate financing, etc, rather than rote discounts and then it's pretty targeted.
 

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There's a lot of wheeling and dealing going on out there with some brands in order to show "big discounts" on new vehicles, so this doesn't surprise me in the least. Some of the deals clearly are too good to be true, at least for the dealer's bottom line. I believe that the Subaru brand is less affected by this...incentives seem to be things like lower rate financing, etc, rather than rote discounts and then it's pretty targeted.
Yes, I see this all the time here in Michigan as the big 3 auto makers/dealers clamor to under sell each other. Over the weekend while watching the golf tournament there was a Chevy commercial with the guy offering $9,000 off MSRP on an Equinox and up to $20,000 off for a pickup. Meanwhile my Subaru dealer is offering 0% financing on an Outback.
 
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We bought a car 2 decades ago at $1000 under invoice (on a $17,000 car). While we were waiting for financing I was chatting with the manager of the dealership and asking why they would sell a car under invoice. Each dealer gets an allotment of cars based on how well they sell them. There are basically quotas to meet based on the volume of your dealership. If you don't sell enough cars, you won't get as big an allotment of cars in the next cycle. So losing money on a few cars to make your quota is definitely a strategy.

If you pay attention, you can see when dealers need to make their quota and you can get the best deal then.
 

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I have a decent relationship with my Mercedes salesman. He says they always sell at a profit. The send any used car they don't think they can make money on to the auction. My Lincoln salesperson openly admitted there are some cars they will sell at a loss.

I'm sure there is more than one sales person on the form, they could probably tell you their individual dealership's policy/arrangements (or, then again, maybe not).
 
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