IRVINE, Calif. -- In a survey by Autobytel, 57 percent of dealers described employee discounts and other set-price promotions as "good for dealers." Those surveyed said such deals are good because they increase showroom traffic and move inventory.

The remaining dealers who responded cited the smaller margins they were forced to absorb as the reason employee discounts and set-price promotions are "bad for dealers."

Additionally, a majority of dealers said they expect their 2005 sales to be higher than the previous year, with General Motors' dealers being the only exception. Seventy-seven percent of dealers predicted that their 2005 sales will be either "significantly higher" or "somewhat higher" than last year, at 27 percent and 50 percent, respectively.

Meanwhile, 16 percent of dealers surveyed said they anticipate that sales will be flat, and 8 percent forecasted that their sales will be lower than the prior year.

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