Question about "Push it in Pull it in Drag it in" Sales

[alexjohnson16]

There's an ad in the local papers classifieds about a local new car dealership having a push it in pull it in drag it in sale...

it says $3,100 guarenteed towards ANY car you can get on their lot...

i'm wondering... how do dealerships do this, and if one was to take in on this offer, how does the dealership award you $3,100... is it taken off the car price???

 

[ThaGrandCow]

they guarantee it if you take financing at a high interest rate for 60 months. they make their cash back plus some in interest

 

[Kelemvor]

NEVER mention a trade until AFTER you agree on a final selling price.

 

[chin311]

ive always wondering the exact same thing, i KNOW they make it up somewhere...either in the car price, financing, or somehow.

 

[AgentBehemoth]

They use rebates and their advertising fees to do this. They have a $2500 rebate and probably $600 in advertising fees that is your trade in value. Every dealership is given $600-$700 by the manf. for advertising each vehicle and so they have that and any rebates to use as they see fit.

Edit: And GCow you can get financing from anywhere you want for any amount of time that you want so that can't be how they are doing it. Those deals aren't on only vehicles that you finance through them.