Why The Year End Sale Might Not Be A Good Deal
Keywords: car care
Auto dealers love to hype up their year end clearance sales by trying to convey the idea that you are getting HUGE savings but you really have to look a lot deeper to see if the “great deal” is a deal at all.
Although it may be a fact that you are getting a brand new car at a reduced price, the real truth of the matter is that you are also buying a car that is a year old and according to the auction reports and the books that value vehicles your car has already depreciated several thousand dollars. “But it’s new!” you say, it doesn’t matter and that is why you want to look at some other issues to be sure that you really are getting a benefit by buying a year old car.
The best deals on last year’s models will be found on car’s with the manufacturer’s carryover allowance which is an incentive given to the dealer so he will order more cars even though he still has a lot full of last year’s cars. GM and Ford for example, usually have incentives as high as 5% of the sticker price of the vehicle while some imports can have incentives as high as $6,000 to $10,000 on certain luxury cars!
Let’s look at an example of a domestic car like a Ford or Chevy. If the car has a window sticker of $20,000 then the auto dealer is going to have the 5% carryover which in this case would be $1,000, plus their usual dealer holdback of around 3% or $600 and any factory to dealer incentives which are usually pretty large these days. We’ll use $1,400 for this example. So before we even get started negotiating we have $3000 that is not going to show up on the dealer’s invoice. Now if we factor in that the cost of the vehicle is probably around $18,000 and we subtract our $3000 from that, we see the actual cost to the dealer may only be $15,000!
Some dealers may not want to sell the car at this figure, but keep this in mind for ammunition. Almost every dealer has his inventory “floor planned” or financed which means he is paying interest on every car on his lot for as long as it is there. Trust me he doesn’t want to do that. I was in the business for 15 years and at the end of the year when the new models were coming out I wanted to be able to transition out of my old inventory as soon as possible without losing money. The longer they keep the vehicles the more likelihood there is of losing money.
Another big issue to consider is if there has been a model change. This can drastically affect the value of a vehicle. I can remember when the body style of the Dodge Ram pickup truck was changed in 1995; the 1994’s were practically worthless. The new Ram was bringing sticker price at the auctions!
Shop around and find a dealer with a ton of current models on his lot as well as last year’s he may be more willing to bargain. And remember that if there has been a big change you may want to pay the extra for the new model unless you can just flat out steal last year’s model.
Gregg Hall is a business consultant and author for many online and offline businesses and lives in Navarre Florida with his 16 year old son. For great car care products go to www.carcarewizards.com
Previous Articles Highlighter:
Driver's Need Motivates Car Selection (1)
They might even offer advice on how to get pre-approved for a new or used car loan so that the customer will know for sure what payments they will make and will be motivated to buy cars in that price range.
Preferred Tools Of The Car Detailing Trade (2)
To make your time more efficient, use the various styles of tools available. They are made of both stainless steel and plastic. The standard upholstery wand is used more than any other is.
How To Get The Best Rates When Insuring Your Sports Car (3)
It always pays to buy a product for which there is competition. Car insurance is one sector that has terrible competition. So, this affords you the chance to check in with a number of insurers.
Buying A Car? Do These Things First (4)
This is a BIG trick at dealerships, never negotiate based on payments. 7.Be aware of penalties. Some lenders might charge you for paying off your loan early. Many states have laws against this now, be sure to check the laws in your state.
Various Factors To Take Into Consideration If You Are Searching For A BMW Cincinnati Dealership (5)
Keywords: bmw dealership, bmw cincinnati dealership If you are searching for a BMW Cincinnati dealership, the first thing your going to have to realize is that there are quite a few different Cincinnati dealerships to pick from, so this could end up making it somewhat frustrating and confusing as to what is the best way to make a decision on which particular dealership you should go to.
How To Drive Safely At Night And During The Fall (6)
Take special care on poorly lit, rural roads. Preventive Maintenance Clean and check your headlights regularly. Headlight dirt or misalignment can reduce the distance a driver can detect objects at night by about thirty percent.
The Benefits Of Driving A Plug In Hybrid Car (7)
There are many economic advantages of these types of hybrids over regular automobiles. You can use the plug-in hybrid regularly on short trips and due to the fact that the gas engine only kicks in when it absolutely has to the fuel efficiency is fantastic.
If You Love Drifting Or Formula D Racing The G4 Channel Is A Must (8)
As long as you have a working computer and internet access you should be able to see the pod casts and see what's going on. You will be able to see what's going on at work if you have internet access.
How To Properly Check Tire Pressure And Condition For Safety (9)
If your tires have too much pressure it can cause them to prematurely wear in the middle and reduce the actual area of the tire that meets the road and can reduce your safety.
Can You Get A Good Deal At A Government Seized Car Auction? (10)
And you many times are buying items similar to foreclosures on the courthouse steps, site unseen and history unknown. If there are liens, levies, unpaid taxes, etc. on these items and you are the winning bidder you become responsible for them.
How To Properly Fix A Flat Tire (11)
That means you will have a flat and it is best to be prepared for it. I've seen people stuck on the side of the road with no spare, no jack or lug wrench and no cell phone.
Should I Use Wax On My Car? (12)
If the residue does not easily buff to a shine, use a new clean towel. Always apply the product in a back and forth movement, circles will create swirls.
Choosing Tires For Winter Driving (13)
Installing tire chains can increase traction as much as 200%. Again, make sure that these chains are of the right size and type for your particular tire as the wrong chains can cause the tires to fail.
Best Summer Maintenance Tips For Your Car (14)
Here are some tips for your car this summer that will keep you going, keep you cool and minimize repairs. Basically these tips can keep you out of the breakdown lane.
How To Avoid Dealership Scams (15)
This scam just doesn't make sense. Basically the finance manager is telling you that the bank won't trust you to pay the $20,000 loan for the car, but they will trust you if you pay even more money.
Hyundai Closing In On Honda As Their Brand Value Rises (16)
Apparently Hyundai has taken a page from Walmart founder Sam Walton, price yourself as aggressive as possible while providing what your customers want and need. Hyundai has out priced their competition and now sits poised to become, perhaps, the major automotive player similar to what Walmart did with its retail stores.
Buy A Smarter Vehicle And Travel Tips (17)
It is always good to keep a good check on the different lids and caps of the car. They can saves you unaccounted amount of gas in the long run.
Routine Car Polishing Gives Your Car A Spruced-up, Fresh Look (18)
If you are thinking in terms of accomplishing the car polishing job on your own, do not expect the excellence of a professional car detailer. However, abiding the following car polishing tips will give your car a stunning look and keep the common problems such as rusting and corrosion at bay.
Tips For Safer Driving At Night (19)
If you don't need to go out, don't. 2) Don't drink and drive. You may think you hold your liquor well, and that you won't get arrested or be over the legal limit in your state, but it is a proven fact that any alcohol in your system will slow down or impair your reflexes.
How To Find And Install Auto Parts On Your Own Vehicle (20)
Still, if you enjoy it and you want to save some money, you can save quite a bit by finding the parts you need and installing them yourself. One way that you can reduce the expense of auto parts is to go for recycled car parts.
Newer Articles Highlighter:
How To Find A Secure Key Chain Flash Drive (1)
This is an easy problem to solve. You can get software to secure your key chain flash drive. When purchasing your securing software make sure you know if it will work with a Mac, or Windows, or a PC.
Why Used Auto Parts Are Better Than New Auto Parts (2)
Keywords: auto parts, used auto parts, auto parts stores, advance auto parts, auto body parts, discount auto parts For the last 60 years auto recyclers, otherwise known as auto wreckers or auto dismantlers with their junkyards and salvage yards, have played an important role in the economy and environment.
How Do I Know If I Should Buy Or Lease A Car (3)
Some insurance carriers may also calculate leasing to be higher risk than purchasing. Gregg Hall is a consultant for online and offline businesses and lives in Navarre Florida. Get your car parts at www.autopartsplusmore.com
Are You A Difference Buyer Or A Payment Buyer? (4)
Keep it to yourself and be concerned about all of it. Gregg Hall is a business consultant and author for many online and offline businesses and lives in Navarre Florida with his 16 year old son.
Have You Considered A Camping Tent For Your Truck (5)
For the tents that do not come with color coded tent poles many people do adjust to this and learn quickly how to install their truck tent correctly. Another downside to the variety of tent poles is that some tent poles actually require you to crawl inside the tent in order to put the tent up.
Rolls Royce Phantom Silver Honors Silver Ghosts (6)
The varied grain rosewood also is used for a presentation box that holds the key, two solid silver key fobs and a specially commissioned Conway Stewart fountain pen. The LCD screen for the navigational system is strategically concealed behind the clock in the dashboard to preserve the car's classic decorum.
Some Great Tips To Help Sports Car Owners Save On Car Insurance (7)
If a kid is driving a car, there may be lower rates for good grades. Most agencies will offer to lower your rates if you remain accident free for a period of time.
How To Get The Best Automotive Repair Service (8)
Exactly when does the problem occur? Is it constant or does it occur now and again? Does the problem happen when the vehicle is cold or after the engine has warmed up?
Preparing Your Car For The Winter Months (9)
Battery: Batteries should be tested for weakness and proven to work at proper operating levels. The battery terminals should be clean and in good working condition. Baking soda and water paste helps to clean corroded posts.
Liability In Bus Accidents (10)
"Common carriers" are defined as being someone whose business is transporting people or material items from one place to another for compensation; such services typically are open to the public.
SUV Rollover Accident Attorneys (11)
If the vehicle is totaled as a result of the accident, the estimate will need to include the current value of the vehicle, rather than the value of replacement parts.
A Look At Gas Trucks Versus Diesel Trucks (12)
For those who like to haul heavy loads on a frequent basis, diesel is the way to go. You can get quite a few miles per gallon, and diesel trucks are built to go 250,000 miles or more before the engine needs to be rebuit,making them a purchase that is more than worth your money.
Why Proper Camper Tie Downs Are Essential If You Have A Camper That Attaches To Your Truck (13)
But in the end most of the tie downs are going to work just about the same, no matter how much you pay for them. So you might as well choose your tie down based on what extra features are best for your truck and your style.
How To Properly Install Your Own Car Stereo System And When You Shouldn't (14)
Fortuitously, just about all units abide by the same size standards (DIN). In a lot of cars, when the factory radio is tak en out the aftermarket radio receiver will fit in the empty hole.
If You Want A Hybrid Vehicle, Get In Line And Wait (15)
You should also consider going outside of your area to buy one. Not every area has as high a demand as yours might. Do the research and if it's cost effective go out your way to obtain one, then definitely consider this option.
How To Properly Care For And Maintain Your Windshield Wipers (16)
This could be kind of tricky and dangerous to do while driving down the road. In 1910, the windshield wiper became a standard item on cars, but was still not made electric for years.
Three Factors In Choosing A Body Shop For Your Sports Car (17)
Most probably fall between the two extremes. Considering, however, the importance of a sports car to a motor enthusiast, it seems reasonable to take special care to try to find the best possible service.
How Old Is Your Car In People Years? (18)
In DMV years twenty is at least four times I haven't had to register a new car. A new car starts depreciating as soon as it leaves the dealership.
Some Good Reasons To Consider Attending Car Shows (19)
Some people will go to expos just based on one style of vehicle or even one type of automobile but that's not a true auto show that's a car club.
Some Tips To Help You Choose The Best Radar Detector For Your Car (20)
While many detectors can, in theory, detect a radar signal up to five miles away, in the real world those conditions are rarely ever met. So, when you are considering a detector, look to how the detector was tested.