It's a fight to the finish
Every month end, general managers and sales staff at dealerships across the country find themselves agreeing to money-losing deals to sell enough vehicles to meet stair-step volume targets. All to secure a big check from the automaker that many stores rely on to turn a profit. It's a race many auto retails dread.
‘It's destructive. It's disgusting'
Steve Kalafer, who began selling cars out of a gas station more than four decades ago, argues that improvements in stair-step target programs do not make up for new-vehicle margins that have steadily eroded in recent years, in part because of the programs.