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CAR BUYERS PERCEIVE HIGH DEALER PROFIT, PREFER TO DICKER

 GLENDALE, Calif., March 3 /PRNewswire/ -- American car buyers believe that auto dealers make almost three times as much profit on a new car sale as they actually do, according to a recent nationwide consumer survey conducted by The Dohring Company.
 According to Doug Dohring, chief executive officer of the nation's leading market research firm specializing in automotive retailing, respondents said they thought the typical auto dealer makes an average profit per new vehicle of 18 to 21 percent of the vehicle's sticker price.
 He said respondents indicated they'd be willing to permit a dealer to make 9 to 10 percent profit on their own next new vehicle purchase -- nearly one-third more than the 1992 national average per vehicle profit of just under 7 percent reported by the National Automobile Dealers Association.
 "The gaps between what consumers perceive is real, what they perceive is fair, and what profit dealers actually make demonstrates the crucial need for auto dealers to communicate more openly with consumers," Dohring said. "The survey suggests that, by listening to consumers and providing them with honest information, dealers and consumers can both benefit."
 Survey result showed that consumers believed the average dealer made $2,720 profit on a new vehicle carrying a $15,000 sticker price, $3,870 profit on a $20,000 new vehicle and $6,150 on a $30,000 vehicle.
 Meanwhile, respondents said on their next new vehicle purchase, they would allow a dealer to make a profit of $1,470 on a $15,000 vehicle, $1,860 on a $20,000 vehicle and $2,820 on a $30,000 vehicle.
 The nationwide survey also found that, in spite of the growing popularity of one-price selling among auto dealers, many American car buyers still want to negotiate on their next new vehicle purchase.
 Dohring said that of the 85 percent of survey respondents who negotiated their last new vehicle purchase, only 34.3 percent of those people said they disliked the process. Of those surveyed, 52.8 percent said they liked the negotiation process and 11.5 percent said neither liked nor disliked the negotiation process.
 Almost nine out of every 10 survey respondents -- 88.6 percent -- said they would still be likely to comparison-shop even after getting a price from a one-price dealer.
 "The results suggest that one-price selling isn't a cure-all for the American auto retailing industry," said Dohring. "Although one-price strategies do appeal to car and truck buyers who dislike negotiating, most consumers seem to actually like haggling in order to get the perceived best possible price.
 The national consumer telephone survey was conducted in early 1993 with a random sampling of 1,246 respondents throughout the United States who intend to purchase a new vehicle in the future. The survey, conducted to ensure that results would accurately reflect potential new vehicle buyers nationwide, has a 95 percent confidence level with a +/-2.9 percent margin of error.
 The Dohring Company, based in Glendale, has conducted over 1,500 individualized market studies for auto dealers and manufacturers in all 50 states and Canada. The 80-employee company interviewed over 100,000 car and light truck buyers in 1992.
 -0- 3/3/93
 /CONTACT: Rudi Loehwing of The Dohring Company, 818-242-1600; or Eric Hood of The Hood Group, 313-433-9651, or Jim Bianchi of Bianchi Public Relations, 313-646-9732, both for The Dohring Company/


CO: The Dohring Company ST: California IN: AUT SU:

KE-DH -- DE010 -- 2443 03/03/93 12:07 EST
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Publication:PR Newswire
Date:Mar 3, 1993
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