Question

1. circle the tactics that are likely to make a car sale more profitable for the dealership. upselling premium features skipping the dealership gap insurance lengthening the loan term breaking additional costs into smaller amounts decreasing the interest rate highlighting the total cost, not just the monthly payment financing the car through the dealership adding extended warranties starting with the customers budget

Explanation:

• Upselling premium features: Adds extra cost to the car sale, increasing revenue.
• Breaking additional costs into smaller amounts: Makes the purchase seem more affordable, potentially increasing the likelihood of the customer agreeing to additional expenses.
• Financing the car through the dealership: Dealerships often earn from financing arrangements.
• Adding extended warranties: An additional product sold that brings in more money.
• Lengthening the loan term: Can lead to more interest payments over time (even if the monthly payment seems lower, total interest might be higher for long - term loans in some cases, and dealerships may have arrangements with lenders).

Skipping dealership gap insurance would lose a potential revenue stream. Decreasing the interest rate reduces the amount the customer pays in interest (which could be a source of income for the dealership if they are involved in the financing in a way that benefits from interest). Highlighting the total cost instead of the monthly payment might make the purchase seem more expensive and less likely to close. Starting with the customer’s budget might limit the dealership’s ability to upsell.

Answer:

Upselling premium features, Breaking additional costs into smaller amounts, Financing the car through the dealership, Adding extended warranties, Lengthening the loan term.