Seattle Times : New tactic: Price cuts give way to giveaways

In Davie, Fla., University Dodge dreamed up a "Buy 1 ... Get 2!" deal to attract potential customers and whittle excess inventory, which had spilled onto the lot next door. As of Friday, the dealership has sold 40 vehicles under the promotion, which promises customers a free Dodge Ram, Dodge Caliber or PT Cruiser if they buy a 2008 Ram.

"Most people think we're crazy," sales manager Ali Ahmed said. "More than anything, it's a way to catch the customer's interest than to just offer a percentage or dollar amount off. They've heard that before."

The dealership has advertised its two-for-one car sale online and in newspapers, Ahmed said, and customers have been calling and showing up to see whether the sale is a gag. But it is no joke from Ahmed's point of view: An estimated 900 auto dealerships out of 20,770 nationwide went out of business in 2008, according to industry estimates, and Ahmed said he did not want to join the thousands likely to close this year.

"It's a tough environment," he said. "Of the dealers around you now, you know some of them aren't going to be on the map next year. If you can steal a little bit of market share now, you're not going to be one of those."

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