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Old 9th August 2005, 10:09   #16
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Default Not Exactly..

Originally Posted by Mpower
Are you saying that if some bholu had paid full sticker price for the Flair, the dealer would have made 94K profit on that transaction.
Good question, Mpower. Lemme explain.
1. The Corporate and Loyalty benifits are passed to the customers directly by Ford. In other words, dealer does not get a cut there - he acts as a delivery boy to forward documents to prove eligibility for the above discounts.

2. If the Seedha Bholu got the car on cash down, he would not be eliible for the finance kick-back. H'ever if he got it 95% financed and let-go the k/back, Yep, he looses 5% of fin amount.

3. Mr. Bholu also stands to loose the dealer discount (about 40 for the Ikon).

So, all in all, Bholu Miyan looses about 18 (per point 1) + NIL (assuming no finance availed, pt 2) + 40 Gs (per pt 3). Total loss 58 Gs!

As they say in Bhaiya parlance - Seedhe ka muh kutta chatha hai (Crude, but true).

On very similar lines;
Be careful of MRP prices in the current VAT regime (at least in states where VAT has been implemented) - MRP is null and void in VAT regimes since both in theory and Practise ni limit on retail prices can be capped as the system as only on Value Addition with no upper cap. Watch out!


Last edited by Xsailor : 9th August 2005 at 10:17.
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