Brand and dealership loyalty is continuing its steady decline, and it is all because of high vehicle prices. Research done by Growth from Knowledge AutoMobility confirms this trend. It turns out asking people to pay above retail price for a Toyota RAV4 could hurt repeat customers. Who knew?


Automotive News reports that in May and June, 80 percent of car buyers paid at or above sticker for a new vehicle. 31 percent of those buyers said they would tell others not to go to the dealership they used. 27 percent of the buyers said they would not return to the dealership for service.

Julie Kenar, senior vice president at GfK AutoMobility, gave a bit of a warning to dealers who are charging customers well over MSRP. While it might be more than beneficial in the short term – it could damage their reputation and affect sales for the long term.

Read Article

Dealer Markups Are Destroying Brand And Dealership Loyalty

About the Author