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Groupon Offers First-Ever Car Coupon

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Car dealers are going to great lengths to sell vehicles -- now one of them is turning to Groupon.

According to a report from Automotive News, LaFontaine Buick GMC Cadillac in Highland Township, Michigan has become the first auto dealer to offer a deal on the coupon website.

"We're dipping a toe in it," said Robert Milner, the general sales manager at the dealership.

Here's how the deal works -- spend $199, and get a voucher of $500 towards the purchase of a car or light truck. Groupon gets half of the $199, so the deal actually costs the dealership $400 per coupon.

The dealership capped the offer at 150 vouchers.

"But if I get 150 people and it costs $400 per commitment, I'm all in on that," Milner said.

Milner said the typical advertising expense per car is $350 to $400, so the Groupon deal is worth it.

Groupon said in a statement that this is a major step forward for the company.

"Since the beginning, Groupon's goal was to give service and structure out of the norm to local businesses so that local users would be able to shop with a discount. Groupon started with local businesses and went to spas and hotels. We thought the next step would be to go to a car dealership."

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