First Groupon for cars fails miserably

Last week, Groupon and a Michigan car dealer announced the first Groupon for new cars, offering $500 off the price of a new or used vehicle for $200. This bold embrace of modern Internet marketing netted exactly four takers.

The dealer group, LaFontaine, had said at least ten bidders would need to take part before the coupon went into effect, but decided to honor the bids anyway and sold cars to two of the four Groupon-ers. Groupon says it will refund the money of anyone who took part in the company's first expansion beyond oil changes and discounts on restaurants. Of course, those deals are typically for up to half off goods with set prices, while $500 discounts have a habit of disappearing in the cologne mists of a dealer's finance department.

Which might explain the lack of enthusiasm.

Photo Credit: AP