@Jeff
Absolutely!!! A couple of things need to be in place first though. First you need to make sure your marketing is in order. If your showing up on page 200 in a autotrader search, then changing the pricing isn't gonna do much for you. It will produce some results for you but, the marketing for the new cars needs to be there first and done correctly. Don't put the cart in front of the horse . Next, you need to merchandise that new vehicle the same way or better you do a used vehicle (photos, videos, descriptions, etc...). Why??? Because there's 10 more like it on your lot and 30 -50 more like it within a 30 min drive in either direction of your dealership.
Here's a true story that I witnessed first hand!!
One of our dealerships was always hitting 80-90 units each month. It was like that for a couple of years. A couple of local dealers with the same franchises started skyrocketing in sales month after month. I ran a few reports for our guys and showed them where they were getting beat. It was purely price. The pricing on the new cars was adjusted for our store at the very beginning of the month and that same month they sold 157 retail units (more than what was sold during cash for clunkers) and have been averaging 140-150 since then. The only thing that changed was the pricing! That's it. Nothing else.
Keep in mind we had all the marketing and merchandising set up and in place prior to the pricing change. The pricing was the missing piece of this puzzle. Everything has increased across the boards. Leads, calls, walk-in traffic and sales! Also, since there was a nice increase in new car sales, used car sales increased to because there were more vehicles being traded-in. This developed a nice, healthy used car inventory. That single change made a huge difference for both new and used car sales.