: Even if the second car was free, it created a new customer relationship for service plans, extended warranties, and future trade-ins. Consumer Reality Check
In 2017, the automotive market was characterized by an abundance of inventory, particularly sedans, as consumer preferences shifted toward SUVs and trucks. To combat this and meet aggressive annual sales goals, dealerships utilized "Buy One, Get One Free" (BOGO) promotions as a high-impact marketing tactic. While these offers appeared revolutionary, they were often complex financial maneuvers designed to clear slow-moving stock while maximizing dealer profit. The Mechanics of the "Free" Car
: Giving away small, fuel-efficient cars helped manufacturers offset the environmental impact of their high-emission SUVs in official sales figures.
: A customer would be required to buy a high-margin, fully loaded vehicle, such as a large SUV, at full manufacturer’s suggested retail price (MSRP).
: In many cases, the "free" car was actually a two-year lease where the down payment and monthly installments were covered by the manufacturer incentives that would have otherwise been used to discount the primary vehicle. Why Dealers Ran BOGO Deals in 2017