I agree that it's ridiculous
But the difference here is that since the company builds the cars in question, it's not spending anything like what you'd think on building them in the first place.

The actual manufacturing cost of a car is only a fraction of what it retails for. Management have to pay a lease charge on those cars for the 6 months that they have them. After the 6 months they are released into the dealership network as 'approved used cars'. The lease charge that the managers pay makes up a good chunk of the difference between what the dealer would pay for a brand new example minus any incentives, and what they pay for the lightly used example.

In short, they make as much money doing that as they do by selling a new car to Joe Public.
( rubberduck should only be used after consulting with your GP, Fri 27 Aug 2010, 9:30, 1 reply, 15 years ago)

I consider myself well and truly told.

( Bazongaloid, Fri 27 Aug 2010, 9:33, Reply)

The problem rears its head though
when you have a large volume manufacturer doing that. Ever noticed how pretty much all the recent-ish used cars on a Ford dealer's forecourt are 'Ford Direct' vehicles with an Essex registration plate?

There's so many of them, there's little incentive to actually buy a new one.
( rubberduck should only be used after consulting with your GP, Fri 27 Aug 2010, 9:37, Reply)