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Businesses that make these offers usually buy an insurance policy against someone winning. If it's a $10,000 prize, but extremely difficult (like a hole in one challenge), the insurance might be like $1,000. The business pays win or lose, so they're hoping someone wins because it's great publicity. It's much more fun when the person awarding the prize is happy and celebrating with the winner, so in that sense it's a good idea.
The insurance company, however, will have very specific language and will try to avoid paying even if it makes the business look bad.
I don't know the specifics in this case, but I worked for a generator company that sponsored a long-putt challenge at a golf fundraiser. Someone won a free generator, and the insurance company tried everything to weasel out of paying. We ended up giving them the generator anyway, because the publicity would have been horrid, and it took like 18 months to get the insurance company to pay up.
Either way, it was stupid of the dealership to try to weasel out of the prize. A lease is like $350 a month times 24 months is $8,400. The kick happened at a football field named after the owner of the dealership after he donated $15 million to the university.
This was my first thought. Insurers being insurers and dickhead dealerships reacting dick-headlly.
Good info. I have decided that I will ban companies and replace them with not having companies any more. Thanks for coming to my ted talk. X
Whoa there communist. You'll never be president with those kinds of lefty policies