New/used car deals

[Seinfeld]

I keep reading that auto makers and used car lots are taking an absolute beating right now, so we should expect some once in a generation type deals throughout the year. I did notice the GMC was advertising 0% for 84 months on new trucks and SUVs, but that’s about all I’ve seen. Anyone seen anything to jump on?

 

[Jeffreauxdawg]

Are the auto manufacturers all shut down? If so it may take a few months for the real deals to come through the pipeline. As soon as they have vehicles piling up at the factory the incentives will come. 0% is nice, but with current fed rates it's not a big give away.

 

[aTotal360]

0% = higher sticker price

 

[Dawgpile]

0% financing on F-150 for 60 months thru the end of the month. And, you don't have to have A1 credit to get it. Ford Motor Credit is buying stooopid deals at 0%.

 

[Seinfeld]

Something tells me you’re right. i.e. we haven’t even scratched the surface of how low prices will go

I’ve been in the market for a truck for a couple years now, but I just haven been able to trade in my pathfinder for a $600 note when there’s zilch wrong with my current car. If things get enticing enough, though, I may pull the trigger a little later this year

 

[dorndawg]

Cash buyers can get some SMOKIN' deals on remaining new 2019s right now, I'd imagine

 

[Drebin]

0% = higher sticker price

Your mileage may vary. I just bought a new truck last week and got 0/84 plus about 21% off the MSRP. It depends on the dealer and available dealer rebates.

He told me they haven't been able to sell anything over the last two months.

 

[patdog]

Yeah, but there may not be any way around it though if that's all the manufacturer is offering.

 

[johnson86-1]

I keep reading that auto makers and used car lots are taking an absolute beating right now, so we should expect some once in a generation type deals throughout the year. I did notice the GMC was advertising 0% for 84 months on new trucks and SUVs, but that’s about all I’ve seen. Anyone seen anything to jump on?

Supposedly you will see a big drop in used prices when all the major rental companies start selling off more inventory than usual to reflect the lowered demand they are seeing.

I am not seeing prices reflect reality yet in pretty much anything. Been looking at houses, cars, and boats, and things may not be moving as much, but prices raen't dropping that much either. Seen some cars and boats at pretty decent prices but nothing great. Housing I think just hasn't slowed down yet that much where I am, but for the used car and boat market, I think everybody is so levered up that you won't see a big drop in prices until there are repos, as right now, almost everybody is trying to at least get the payoff on their note and they were probably upside down before the crisis.

 

[aTotal360]

DO NOT, under any circumstances, let them know you are buying with cash until the 11th hour. Pretend you are going to finance until the bitter end. At the very end, change your mind and offer cash. They will hate you for it, but its the best way to get a "deal".

Dealers have 2 revenue models nowadays.
1) what they net on the sale
2) the juice on financing

 

[kired]

Just bought our first new vehicle in 10 years this past January... talk about bad timing.

But it is interesting looking at current inventories. A few dealers appear to have lots in stock - almost like they are hoarding what they have. Others barely have anything (at least of the particular vehicle we bought) and I'm assuming they won't until manufacturers open back up. So maybe the prices wouldn't be much better.

 

[Drebin]

DO NOT, under any circumstances, let them know you are buying with cash until the 11th hour. Pretend you are going to finance until the bitter end. At the very end, change your mind and offer cash. They will hate you for it, but its the best way to get a "deal".

Dealers have 2 revenue models nowadays.
1) what they net on the sale
2) the juice on financing

Great advice. If you can't afford to pay cash, arrange your financing outside the dealer before purchasing if you know what you want. You will usually find a better interest rate, and to the dealer, you are still paying cash, so you will still get the best deal.

ETA: Never fall for the dealer's "what are you looking for your note to be" question.

 

[NWADawg]

They also have Holdback money and volume incentives. Volume incentives are floating and depend on total # sold at end of month / end of year. The Holdback money is basically a manufacturer created amount that allows them to help the dealer and screw the salesman out of commission. Go to multiple dealers and ask to see the invoice. Holdback money should be listed on the invoice. Most will show you real invoice but some will show you fake. If you have them from multiple dealers, it will be easy to figure out who's being honest. Invoice - Holdback = what the dealer pays (sales incentives are paid back to dealer later based on volume). All national incentives such as "$10k off all full size pickups" come straight from the manufacturer and should be straight subtracted from the dealer cost on the invoice also.

Holdback - If the invoice says the dealer paid $40k and the holdback is $2k, the dealer pays $38k but commission is based on sales price - $40k. So the dealer makes an additional $2k that the salesman gets no credit of commission from.

Hope this helps.

 

[Jeffreauxdawg]

This gets me thinking... We all (myself included) will fight, tooth and nail to save an extra $2k every few years on a car. Why can't we have this kind of negotiating power with doctors, insurance, hospitals, and pharmacies?

You want to talk about lowering the cost if healthcare... Make all insurance companies give a flat rate across the country (to businesses and individual buyers) maybe give a little add on for smokers and overweight to incentivize healthy behavior. All doctors, hospitals, and pharmacies need a sticker price on their services.

We would drive down the cost of healthcare 30% in a matter of years. Great doctors and services would be like Mercedes and little doc in a box operations would be like a Hyundai.


Sorry for the hijack.

 

[dorndawg]

Completely agree. California recently did something along the lines of what you're talking about in terms of transparent healthcare pricing.

https://www.chcf.org/blog/how-california-close-in-meaningful-price-transparency/

 

[bruiser.sixpack]

Yeah. I made a bad deal(partly my fault, partly the dealers typical scam) last November because I needed to get out of an older truck that was starting to cost too much to keep up. I bought a 2017 MKC getting sold on all the great value and added coverage on a Lincoln because “all Lincoln’s are certified with a 36 point bumper to bumper going over” crap spiel.

Turns out I paid $6500 over the KBB value( my fault for not doing due diligence). The reason I know this is because I decided this vehicle just doesn’t have the leg room that I need as a daily driver so I went back to same dealer to trade. Nope. They want to keep all their used vehicles apparently because they have no intent to make a fair deal. I’ll make my wife drive it for a while, and I’ll wait until just before they are about to go out of business if they don’t start dealing.

 

[NTDawg]

I replaced my 20 y/o truck at the end of Dec. Thought I had timed it just right. Oh well my old truck might not have made it another 4 months

 

[Digging dog]

Cash is king now.

 

[JesterB]

don’t forget that your trade isn’t worth what it once was either. So unless you’re a first time purchaser this is kind of all for nothing. The tide comes in, the tide goes out. Same amount of water in the ocean.

 

[johnson86-1]

don’t forget that your trade isn’t worth what it once was either. So unless you’re a first time purchaser this is kind of all for nothing. The tide comes in, the tide goes out. Same amount of water in the ocean.

For the people looking to be opporunistic and upgrade, they're still coming out ahead. If' you're driving a ten year old car worth $5k and it loses 40% of it's value, you're still coming out ahead if you are buying a $40k car that has dropped by 10%. If you're driving a two year old car and looking to buy new, yea, there's probably not as much of a benefit available.

 

[SyonaraStanz]

Great advice. If you can't afford to pay cash, arrange your financing outside the dealer before purchasing if you know what you want. You will usually find a better interest rate, and to the dealer, you are still paying cash, so you will still get the best deal.

ETA: Never fall for the dealer's "what are you looking for your note to be" question.

To add, a lot of rebates/incentives are tied to financing at the dealership or with the manufacturer. My last 2 purchases have been with dealerships; then I turn around and refi with a credit union at a better rate. They ask that you make 3 payments with their financer, so they get their kickback or incentive, but make that depend on how sweet of a deal they make you. Scratch my back, I'll scratch yours.

 

[Dawgg]

Great advice. If you can't afford to pay cash, arrange your financing outside the dealer before purchasing if you know what you want. You will usually find a better interest rate, and to the dealer, you are still paying cash, so you will still get the best deal.

ETA: Never fall for the dealer's "what are you looking for your note to be" question.

Agreed. Also, if you, your spouse, your parents/grandparents, or your spouse's parents/grandparents are/were in the military, look into Pentagon Federal Credit Union and get pre-approved BEFORE you shop. Anytime I've financed a vehicle, they've either had the best interest rate or forced the dealership to drop their interest rate to beat them.

 

[LandsurveyorDawg]

If you tried that to me on my lot I would tell you to go get your shine box.

 

[wesson210]

Being a dealer for 50 years (now inactive), I have seen it all. The 80's were the hardest years of my life but we managed to survive by having faith and hard living. Dealers folded like flies everywhere because they did not adjust their operation to cope with it. Now that I look back, those were years of personal growth for me and prepared me for a better future and life. We all face challenges from time to time and how we react and cope with them determines our success and we are measured by it. We will find this true in today's environment also

 

[aTotal360]

And I wouldn't buy your car.

 

[Drebin]

If you tried that to me on my lot I would tell you to go get your shine box.

Nah, you'd bend over and take it.

 

[ezsoil]

Being a dealer for 50 years (now inactive), I have seen it all. The 80's were the hardest years of my life but we managed to survive by having faith and hard living. Dealers folded like flies everywhere because they did not adjust their operation to cope with it. Now that I look back, those were years of personal growth for me and prepared me for a better future and life. We all face challenges from time to time and how we react and cope with them determines our success and we are measured by it. We will find this true in today's environment also

who the hell would downvote this? Being self aware and growing from adversity is worth being downvoted....lord help up us

 

[Dawgg]

This gets me thinking... We all (myself included) will fight, tooth and nail to save an extra $2k every few years on a car. Why can't we have this kind of negotiating power with doctors, insurance, hospitals, and pharmacies?

You want to talk about lowering the cost if healthcare... Make all insurance companies give a flat rate across the country (to businesses and individual buyers) maybe give a little add on for smokers and overweight to incentivize healthy behavior. All doctors, hospitals, and pharmacies need a sticker price on their services.

We would drive down the cost of healthcare 30% in a matter of years. Great doctors and services would be like Mercedes and little doc in a box operations would be like a Hyundai.


Sorry for the hijack.

My employer actually encourages shopping around. We’re on an HDCP with an HSA. There’s a BC/BS site setup for it and everything.

 

[mstateglfr]

I’ll make my wife drive it...

Sounds about right.

 

[RBDog82]

https://www.roadandtrack.com/car-cu...e/a32070950/should-i-sell-my-car-coronavirus/