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Tuesday, August 02, 2005

Car prices

Posted by: Hammer / 11:59 AM

While Toyota is raising prices, GM and Ford are lowering their prices and reducing incentives to boost resale values. Someone's got to be pretty dumb for this to work. Either I'm too dumb to understand the plan, or the car buying public is too dumb to understand that if you lower prices while lowering incentives, the price of the car stays the same. If the price of the car stays the same, how does that affect resale value?

Still, at least Ford and GM aren't intentionally screwing their customers, as Best Buy appears willing to do.


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