Smart Motorist

Buy a new car and get an used car from Darrow Group

Faced with a double-digit drop in car sales, the Russ Darrow Group is tossing in a used car with every new vehicle purchased through Jan. 5, the dealership said Tuesday.

The reason for the offer is simple: Business is bad - really bad. "Frankly, we've got a ton of inventory," said Mike Darrow, executive vice president of the dealership group.

The 14-location Darrow chain, based in Menomonee Falls, has about 1,000 used and more than 2,000 new cars in its inventory, Darrow said. "We wish our inventory was 30% to 40% percent lighter," he said.

As with any offer, customers have to read the fine print. Technically, the promotion doesn't provide a free used car to buyers. Rather, it allows purchasers of any new vehicle from Darrow to buy a used car of their choice, worth up to $10,000, for $1, plus tax, title and license fees. The value of the used car offered is determined by the cost of the new vehicle, Darrow said.

For example, the buyers of pricier vehicles such as a Nissan Armada or Cadillac Escalade could receive a $10,000 used car for a buck, Darrow said. People buying inexpensive new cars, such as a Kia Rio or a Nissan Versa, would be looking at used cars in the $500 to $2,000 range, he said.

New-car buyers can either take the used car offered for $1 or kick in some of their own cash for a more expensive used vehicle. Either way, Darrow said, the offer could help some people secure credit because a used car has built-in equity that exceeds what the customer will pay.

Darrow has dealerships in Appleton, Oshkosh, West Bend, Madison, Milwaukee and Waukesha. It sells Toyota, Honda, Nissan, Mazda, Kia, Chrysler, Jeep, Dodge, Cadillac, GMC, Mitsubishi and Suzuki.
One tactic of many

The Darrow Group's action is one of many tactics that auto dealers coast-to-coast are taking to bring customers to showrooms, said Paul Taylor, chief economist for the National Automobile Dealers Association, a trade group with more than 19,700 members.

New-vehicle sales in November were down more than 36% compared with November 2007, Taylor said. Sales are down 16.3% for the first 11 months of the year, he said.

About Russ Darrow Group, Inc

Russ Darrow Group offers a huge selection of new vehicles in Wisconsin, no matter what price range you are looking in. Whether you are looking for a domestic vehicle or an import you will find here.

Since 1965, they have serviced over one million vehicles. The company's some 20 dealerships in Wisconsin sell new cars, minivans, sport utility vehicles, and trucks made by Daimler AG, GM, Honda, Isuzu, Kia, Mazda, Nissan, Suzuki, and Toyota. The company also performs service and repair work, sells spare parts, and operates a leasing company.

The Russ Darrow Group has large selection of used cars, trucks and SUV for sale in Wisconsin priced under $12,000. Each has been maintained and inspected to make sure they will run like new for years to come. Through hundreds of thousands of miles of testing, the engineers that designed your vehicle have set specific intervals to have these systems inspected. They also offer a courtesy shuttle in their trade areas to help you maintain your daily schedule.

At the Darrow Group, sales are off about 20% to 25% this year when measured on a same-store basis. The group expects to post revenue of about $335 million this year, compared with $425 million last year, Darrow said, noting that the company sold four dealerships at the end of last year.

Staffing levels are down, and some experienced salespeople are coming in on their days off to drum up business, Darrow said.

Taylor said buy one-get two offers "are fairly rare" promotions that generally work in getting a dealer attention and traffic. "They're not typically making any money," with the promotion, Taylor said. "They're adjusting their inventories."

Find your nearby dealer of Russ Darrow Group, Inc in Wisconsin: http://www.russdarrow.com/site/contact_us