Omni Automotive Advertising Blog

Nissan Motor Co., Ltd just posted this press release announcing their new “collision free” prototype. The prototype incorporates two new technologies, Side Collision Prevention (SCP) and Back-up Collision Prevention (BCP). These technologies incorporate the available Distance Control Assist (DCA) and Lane Departure Prevention (LDP) systems.

Like something from science fiction, this new technology will not only warn drivers of potential obstacles but also activate braking mechanisms to help avoid collisions. The DCA keeps track of distances between cars and the LDP helps to keep the driver in the proper lane. Working together, these technologies are meant to help avoid accidents with “minimal intervention”

Last week it was announced that GM would no longer be offering leasing through the Chrysler Financing, although lease financing would still be available through other lenders. Now the LA Times is reporting in this post that Dodge, which is a part of Chrysler, would be offering up to 40% off select 1500 Ram pickups. This is all a part of the current “Shop ‘Til You Drive” sales event for the Chrysler Dodge Jeep brands.

Wow! 40% off. What a deal! 40% off a base MSRP of $22,050, would come to $13,230. Sounds like a deal. But remember that the 1500 has a has a 27 gallon gas tank. At $4 a gallon, you would pay $108 to fill up. Thats about $5800 a year for gas.

However, if you go to the specials pages on those sites, you will not find a 40% offer. There is a $2000 Bonus Cash Allowance on a 1500 Regular Cab Purchase as well as $1,000 Lease Bonus Cash Allowance, and $500 Lease Loyalty Cash Allowance though.

Has anyone found one of those Ram 1500s for 40% off??

Joe Gibson’s Automotive closed its doors on August first. The maligned dealership fell on hard times after it was sued over false and misleading advertising. The dealership advertised a low payment on a vehicle for three months, then jacked up the price for the remaining 69 months.

The Better Business Bureau received more than 50 complaints based on this practice and Joe Gibson Automotive was named in 14 different lawsuits.

The campaign even ruined customers credit. Which led one customer to remark:”I’m glad their doors are shut and they can’t rip anybody else off.”

Now this is not a new campaign. This is something car dealers across the country run (here and here for examples.)

It all comes back to short term, long term. Yes the campaign will gain you short term traffic. Yes it might even gain you a short term bump in sales. But in the long run, campigns like this ruin your reputation in town. And once that is gone, you have nothing.

Sales come and go, but bad word of mouth has a much longer life span. Just ask the Big 3 about bad word of mouth.

Use this as a cautionary tale if you decide to run a seriously misleading campaign.