Groupon has offered the first voucher on a new car or light truck at a Michigan dealership earlier this week. The company, which is popular for its hotel and restaurant vouchers, launched its first vehicle dealership deal at LaFontaine Buick GMC Cadillac in Highland Township, Mich.
The dealership’s general manager Robert Milner stated that he was a bit reluctant to be the first dealer in the country to try the Groupon deal. However, he likes the idea of setting a precedent. Customers will have to spend $199 in order to obtain a voucher worth $500 toward the purchase of a car, redeemable this year.
Groupon and LaFontaine split the money of the consumers. Between giving up $100 to Groupon and $300 to consumers, each sale will cost the dealership $400. As LaFontaine can’t be sure about the demand, the deal was limited to 150 vouchers, Milner said.
He asserted that he would be “all in on that” if there will be 150 people opting for it and it would cost $400 per commitment. He also mentioned that the typical advertising expense per car is $350 to $400, placing the Groupon cost in line with budgeted expenses.
In a statement issued through SS PR, its Chicago-based public relations firm, Groupon disclosed that car dealerships are a next step for the company.
The statement also said that since the start, the company’s goal was to offer service and structure out of the ordinary to local businesses so that local consumers would be able to shop with a discount.
Groupon began with the local businesses and then expanded to spas and hotels. The company stated that the next step would be to go to a car dealership.