Franchise dealerships are not telling buyers about automakers' special financing programs that restrict retailers from adding margins, according to industry payment calculator and analytics provider Market Scan.
Market Scan President Rusty West told Automotive News his company noticed the issue while working for a Japanese automaker whose incentive program lacked usage. Its adoption rate was less than 20 percent, West said — far below what he called the normal industry penetration of 90 percent.
Market Scan realized while the program was aggressive in giving customers a deal, "the rates can't be marked up," West said. "So they're never even being presented to the consumer."