Not sure the correct wording, but how do dealerships get taxed/fees for having excess stock on their lots at the end of the year.

I know that they try to get rid of their inventory at the end of the year bc models become a year older and they get charged for having more cars present.

So if anyone knows how this works, would you mind explaining. I have a friend looking for a car and wondering if we could use this to get the price down, and knowing how this works would be great.

Thanks

 

I'd be interested as well ... seems they would want to give you a better deal since the car has been sitting on the lot for so long. Even insurance costs must roll up to some amount ...

 

ask for invoice price. that's pretty fair between you and the dealership.

 

no, depends on the car but most cars you can ask them for *Below* invoice.

I got my father a 08 Brand new just came off boat CX-7 about a month and half ago, 1K under invoice. Fully Loaded.

You just have to know what you're doing.

 

Well since obviously you know what your doing, plz explain to us. You either have to be really stubborn after they tell you know 5-10 times or you have to know someone.

There is know cute sneaky ways you can get them to go omg yes your right plz let me sell you a vehicle at 1000$ below what we owe on that vehicle!

 

talk to a fleet manager over the phone, they don't make commission...so its easier for them to "give away" cars at a low price.

 

How hard can it be? Buying a Car is like buying anything else. Know what you're getting, and most important, know your limits.

They always throw stuff like *This is the best we can do*, *I can show you my invoice, its the price that we got our car, we're not making any money off from you!*, *This price is good only if you buy today*, *We think you're cool, how about another 500 more?*, etc etc.

When I say What you're getting, I mean, dont limit yourself to just 1 dealership, unless you're really *lucky* that no other dealership exist within 300 miles. Shop around, u'll find something.

Know your limits, means how much *THEY* can take, not you, in the other words, go do research on the car you're buying, Internet is your friend, ask around how much other people got for their car, then go search on sites like consurmerreports, find out how much they got for the car, holdbacks and %. Another tip for you, Go buy a car around the middle of the month plus go there before the end of the day.

I got my car Shinka Brand new from the same dealership 28K that was 2 and 1/2 years ago. I know how much it cost, they tried to sell me for 31K, I was like 28K or no deal.

 

Alright thanks everyone who responded

 

Usually, what you are describing, isn't hwo it works. This is abotu as close to answering your initial post in a manner seperate from what is already here.

Typically, dealers don't OWN the cars. Typically they have a revolving credit line(lieka REALLY big credit card, and they pay interest on the car, then must pay it off within 3 business days of the cars sale. As a car sits ont he lot, it will have interest cahrged to it. Once it is there for 90 days, the Floorplan Bank(credit card company) will require 10% of the principal on that car be paid down, and another 10% per month until it is sold. Most banks will require payment in full for the vehicle by the time it has been on the lot for 365 days. So the longer a car sits on the lot, the more money a dealer has TIED up in it, but their EXPENSES on keeping the car there will be reduced. If an owner is tight on liquid cash, he may push toi sell old age units, as the cashflow will be better. Thge end of the year, isn't anythign too particular to the dealers.

 

^ alright yeah that was exactly what I was looking for. I wasn't sure whats true from what some people say is true. You cleared it up for me tho.

Thanks

 

End of the year means nothing to the dealership. The manufacturer may offer incentives, but the dealer pays the same for a car on January 1st as it does on December 31st.
Anyone who tells you otherwise is trying to sell you something.




WRONG!!!!!! I was a fleet manager, we made way more money than the floormen. I am gonna guess you bought through the fleet manager, and he fed you a line that you believed. I am sure you got a very good deal, but you definately got lied to. (white lies, so who cares)

 

Hey buddy.
THe car guys have to make some money, right? Just like you make money to pay bills, they need to pay bills too.
I just ask for invoice or $100~$200 over invoice (depending on the salesperson) because the holdback and all other stuff, it is part of the dealerships profit. Every business has to make some money. I'll never pay full MSRP, but I'm not going to try to make someone sell me a something without making any money.