You think Toyota is really going to front incentivize? I wonder if leases will be much cheaper a few bucks
What I am saying is, that might happen. Also, lease rate can go down with TFS along with Ally and US Bank.
I figured this off-ramp thread would be okay to post this. This is an “opinion” piece (not written by me)
Aggressive =/= Desperate.
They’re still a business and have to keep the lights on.
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I am picking up my free covid-19 bmw lease tomorrow.
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Send dealership /sarcasm
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With short term interest rates near 0, are floorpan costs now negligible? That would be one major cost minimized for dealerships?
Sales won’t have a problem, but F&I office will
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Easier to hide a point of markup when the rate is already 3.5% than when it’s 0% or 1.5%
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You, sir, are getting my point!
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I was more approaching it from the point of view of the cost of keeping a car in stock. If rate ie 0%, then the car is not costing money beyond storage etc. Sure it’s not making money for them. But a dealership may be less inclined to discount in that situation.
I mean for sure on some extent. For us, we are spending around $1.2 million on advertising on the new cars and we have about 500 new cars in stock. So, we are basically spending $240 per car just on advertising thru Edmunds, cars.com, TrueCar, and some other third party websites that we advertise through. So, we are already under the cost and we also pay for the dealer add-ons that costs around $500 - $600 on the new car and average of $1,195 on reconditioning on the used. So, it gets kind of ridiculous on the both department that the GM is running.
Hey Derek, just wondering what’s your 2 cents on how used car prices will go with an upcoming recession. How do you think things like luxury cars or sport sedans will do, two segments who’s clientele will be most affected in comparison to economic cars values?
I think that used luxury cars or sport sedans will thrive in comparison to economic cars.
They always did and always will. For me, I have a 2015 Infiniti Q50 that I bought on the December 2018. The MSRP was around 47k, but I purchased for 19k with only 33k miles on it. People purchase the luxury used vehicles for one of two reasons. 1) It makes them feel good about who they are owning the luxury vehicle. 2) By owning a luxury vehicle, people start to notice the difference of how he/she was to carry themselves.
Because of the gas prices dropping around this country, I see the sales increasing, not decreasing. But people who want an economic cars will have an option to purchase the car at the cheaper car with the extended/deferred payment too, don’t get me wrong.
But here comes the reconditioning fee. My dealership, depending on the used vehicle, will charge on reconditioning fee and averages around $1,195.00. The dealership thinks that by them reconditioning the vehicle is only going to attract the customers to purchase that vehicle, but people only buy what they like based on the vehicle’s mileage, color, and such.
Anyway, I think used cars will thrive in this environment and the aftermath of this incident. People got the tax money back and will be getting it back with $1,200.00 stimulus check every month until June (I suppose.) So, the dealership has an every reason to promote used than new now. So far, Used sold 300 and New sold 285 for my dealership and New was to surpass those by far if it had been last year.
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I agree with sales being better on used versus new. Its like a repeat of after 2008.
And seriosuly moderators even in off topic threads you closing them? Just my opinion but I am sure you all know best. Happy moderating.
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The moderator that closed the other thread is an anti trumper and doesn’t want to admit that he was right about hydroxycloroquine. He closed it as soon as people started posting about doctors having positive results with it…
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I doubt that. Last few post of the thread before lock-down were getting into spit fight, few posts aware from name calling.
It felt like it was the right point to close it before it got into full out post- fight.
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I don’t see that at all in the “interesting global thread”
Ahh the good old House M.D speciality, LUPUS!
All jokes aside, even with a treatment, my medical lecturer of a dad still is skeptical this is going to go away soon. My f*cking classmates are still partying like the 60s and some are still in Florida. Boils my blood.
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