BELGIUM: Car dealer offers a second vehicle free with the purchase of a more expensive model to counter declining sales

Record ID: 537061

  • Title: BELGIUM: Car dealer offers a second vehicle free with the purchase of a more expensive model to counter declining sales
  • Date: 5th December 2008
  • Summary: (EU) VILVOORDE, BELGIUM (DECEMBER 4, 2008) (REUTERS) EXTERIOR OF BELGIAN CAR DEALER 'CARDOEN' (PRON: CARDOON) WITH BANNER ADVERTISING PROMOTIONAL OFFER 'SECOND CAR FREE' INSIDE CAR SHOWROOM, CARS FOR SALE AND CAR WITH BANNER ADVERTISING PROMOTIONAL OFFER 'SECOND CAR FREE' BANNER 'SECOND CAR FREE' AND YELLOW DOT ON CAR CAR FOR SALE TO BENEFIT FROM OFFER, SHOWING PRICE AT 31,007 EUROS AND MENTION OF SECOND CAR FREE CAR FOR SALE TO BENEFIT FROM OFFER WITH PRICE READING 31,007 EUROS AND EXAMPLE OF CAR THE CUSTOMER COULD GET FOR FREE CAR AVAILABLE FOR FREE SHOWING PRICE OF 9,999 EUROS MAN LOOKING AT CARS (SOUNDBITE) (English) CARDOEN MANAGER TOM VAN DEN BOSH SAYING: "The sale of cars went down in all of Europe and here also, by Cardoen in Belgium, we had from January until now it was a slight difference of about 15 per cent less sales. With this promo we hope that we can sell our cars that we still have and that we can achieve the same number of sales that we did last year or maybe a little bit more" NOTE SHOWING BENEFITS TO CUSTOMERS INCLUDING ONE YEAR OF ROAD ASSISTANCE, ONE YEAR OF MEDICAL REPATRIATION, CHECK-UP AFTER 30 DAYS AND A CUP OF COFFEE FOR EVERY PURCHASE WOMAN WALKING TO CAR AVAILABLE FOR FREE IF BUYING A MORE EXPANSIVE ONE PRICE SHOWING 11,699 EUROS AND GIFT WRAPPING PROMOTIONAL BANNER ON CAR, WOMAN LOOKING POSTER SHOWING LETTERS READING 'WOW' (SOUNDBITE) (English) CARDOEN MANAGER TOM VAN DEN BOSH SAYING: "So when they come for the promotion that we do for the moment, mostly they take the big car for themselves and there are two, three options. Or the second car goes to family, or the son or the daughter, or I already heard some people who want to sell immediately the second car that they get for free" CARS IN SHOWROOM CUSTOMERS AROUND CARS, MAN READING NOTE ON CAR POSTER SHOWING TYPES OF CAR FOR SALE THAT WOULD ENTITLE THE CUSTOMER TO BENEFIT FROM OFFER DETAILS OF CARS ON POSTER POSTER WITH LETTERS READING 'WOW, THE LOWEST PRICES', CAR FOR SALE BRAND ON CAR
  • Embargoed: 20th December 2008 12:00
  • Keywords:
  • Location: Belgium
  • Country: Belgium
  • Topics: Economic News,Light / Amusing / Unusual / Quirky
  • Reuters ID: LVADI9W7H22WV31G3ZQF8A0DJ0XI
  • Story Text: To get rid of unwanted stock and maintain sales levels to those of last year, Belgian car dealer Cardoen (pronounced Cardoon) has come up with the ultimate marketing idea: buy an expensive car and get a cheaper one free.
    The offer is valid on certain models only. A red dot indicates models for sale, which are powerful cars costing more than 30,000 euros (38,450 U.S.
    dollars). while a yellow dot points to the smaller cars the customers will get for free. Those cars are worth around 10,000-15,000 euros (12,815-19,220 U.S.
    dollars).
    This year car sales at Cardoen, a family business with seven outlets throughout Belgium, were down 15 per cent compared to last year.
    Tom Van Den Bosh, manager of Cardoen in Vilvoorde, just outside Brussels, said it was a slow, gradual decline throughout the year.
    With stock piling up and the need for fresh cash to get new cars at competitive prices, Van Den Bosh said the brand had to find a way to sell more cars quickly. He it's a good time to buy for Cardoen because manufacturers are lowering their prices, but to buy new models, the company needed cash.
    Van Den Bosh said the promo will enable the company to maintain income revenue from last year or do a little bit better.
    "The sale of cars went down in all of Europe and here also, by Cardoen in Belgium, we had from January until now it was a slight difference of about 15 per cent less sales. With this promo we hope that we can sell our cars that we still have and that we can achieve the same number of sales that we did last year or may be a little bit more," Van Den Bosh said.
    To make sure the cars will go, Cardoen also offers a year of road assistance, medical repatriation, a check-up after 30 days and even a cup of coffee when signing the contract! The offer, which started on November 29 and is set to last until December 14, has been successful, Cardoen said.
    During the first half an hour, customers bought 15cars and got 15 free.
    At the end of the first weekend, 204 cars had been sold. Among those, 124 were linked to the promotional offer.
    The offer is interesting customers in neighbouring countries too and Van Den Bosh said he received dozens of phone calls after a French broadcaster showed a report about the promo.
    But why would you buy two cars instead of one? "So when they come for the promotion that we do for the moment, mostly they take the big car for themselves and there are two, three options.
    Or the second car goes to family, or the son or the daughter, or I already heard some people who want to sell immediately the second car that they get for free," said Van Den Bosh.
    Apparently some people have bought a car between them in order to get one each.
    Van Den Bosh said credit is still available to customers with a job and a property, but has become more difficult for unemployed people with no guarantees to offer.
    Rather than the price of cars getting lower next year, he said manufacturers and car dealers will try to offer more options for the same price.
    Cardoen buys its cars where it can find the best price in Europe and that's currently in Spain, Portugal or Italy, Van Den Bosh said.
  • Copyright Holder: REUTERS
  • Copyright Notice: (c) Copyright Thomson Reuters 2011. Open For Restrictions - http://about.reuters.com/fulllegal.asp
  • Usage Terms/Restrictions: None
Register