Tuesday, February 9th, 2010
The automotive model year officially changes like on 10-1 or thereabouts, if I recall correctly.
However, prior to that, info about the new models is available.
At some time during the year, the price of all cars (with certain exceptions) drops a notch – demand for the ‘expiring’ year drops off as people will wait a little while for the new one. That trickles down and at that point, every prior model year drops down a notch.
That effect is wayyy big if there is a significant change in the new model.
So, the question is:
When does this dropping-a-notch in price happen – practically speaking ?
BTW – I am not going to buy a new car – so i don’t need any info on the strategies involved w them.
For cars/trucks that are a few years old, when will their resale value take some amount of a hit due to the impending release of the new model ?
Many cars start getting majorly marked down in late June/early July. I would suspect that the best deals (if the buyer isn’t partial to any color/specs) are to be had in August, since dealerships need to clear out for new inventory.
Technorati Tags: Best Deals, Buy Car, Cars Trucks, Color Specs, Exceptions, Impending Release, Many Cars, Model Cars, new car, new cars, New Model, New Models, New Year, Prices Of Used Cars, Resale Value
Posted in new cars | 3 Comments »
Saturday, February 6th, 2010
there is the msrp price. and invoice price.
however the dealer has to get the car way below invoice, right?
Because if the sales guy gets a commission. and the deal needs to make money.
so what do car salesmen make on a car sale?
Each dealer has their own pay plan. MSRP and INVOICE have nothing to do with it, so the first two answers here, are basically not an answer at all. On a new car, car dealerships hardly make any money. On used cars, they have to sell the car quickly in order for their profit to stay high.
A dealer I used to work for was 30% of the GROSS profit on the car, was what we were paid, and there was a minimum of $250 per new car, and $150 per used car. That sounds like a lot, but when you’re selling a new car that is so heavily discounted, the dealer loses money to sell it, or only make $400-500, you’re actually better off getting your $250 minimum. On used, where a car might have $2000 profit in it, you can make $600 or so on some cars.
People have a misconception that dealers make tons of money on new cars, and used cars are a steal. In all honesty, most dealers lose money on new cars, and make money on used cars – if they do it right.
Some dealers that are "one price" or "non-negotiable" on their pricing, they have a pay plan based on the number of cars they sell. This is what my dealership does. As a salesman, I get paid a flat-fee per car that I sell, and then there is a bonus scale at the end of the month based on the number of cars I sell. So, I dont care if I sell a $3000 beater that some kid buys, or a $40000 SUV, it makes no difference. If we have a car that we’re losing $1000 to sell because we’ve had it on the lot for 8 months, I dont care. A car is a car, and it’s just another checkmark on the board for my pay.
Lets say I get $250 per car, and I sell 15 cars. That’s $3,750 in commission, plus 15 cars gets me another $1,000 bonus. We get some bonuses for financing, warranties, etc, but that’s maybe $30-$70 per car. So if I sold 15 cars, I’d expect to make around $6000-6500 depending on how the bonsues work out that month.
Believe me, unless you’re REALLY good at this….it’s actually not as lucritive of a job as many people think it is.
Technorati Tags: Bonus, Car Car, Car Dealerships, Car Sale, Car Salesmen, Car Sounds, Cars Dealers, Checkmark, Gross Profit, Honesty, Invoice Price, Misconception, Msrp, Msrp Price, new car, new cars, Sell Car, Tons Of Money, Two Answers, Warranties
Posted in new car sale | 2 Comments »
Saturday, February 6th, 2010
I have two old cars, but I only need to buy one new one.
I wondered with the economy as bad as it is. Would a car dealer ever consider taking two old cars both 10 years old as trade in on the new car? Is there any car salesmen in the audience here?
Some may, depending on the type and condition of the cars and what car you want to buy. The only way to find out is ask. However I wouldn’t tell them I had a trade until I had an agreed on price on the new one. Then ask them and you’ll find out how much you’re getting for the trades. If you go in there with the trades up front you never really know whether they really gave you anything for your car(s) or not.
Technorati Tags: 10 Years, Audience, Car Dealer, Car Salesmen, economy, new car, Old Cars, Trades, Two Cars
Posted in new cars | 3 Comments »
Monday, February 1st, 2010
My family is considering getting a new car, and was planning to buy one under my name to help raise my credit score. I was wondering if this would affect my chances of receiving government aid from FAFSA?
One has nothing to do with the other.
Technorati Tags: Credit Score, Fafsa, Family Car, Government Aid, new car, School Aid
Posted in new car | 1 Comment »
Wednesday, January 27th, 2010
So, you’re contemplating purchasing a used car? Whether the dealership calls it a pre-owned vehicle, a used car or a “new to you” vehicle, it amounts to the same thing. These can be fantastic deals, giving you a needed vehicle, without the depreciation that strikes a new car the second you drive it off the lot. However, now that you have decided to look at what’s for sale, you’ll need to know a bit about financing options. For instance, how long can you finance a used car? Is an extended warranty included in the financing?
When choosing financing for a used car, there are several things that you must look for, prior to making any decision (whether on the car or the financing option). First, is the car worth financing? Obviously, the car has some value, or the dealership would not be selling it, but will it hold its value throughout the loan? To determine this, you’ll need to consider the brand of the vehicle, as well as how many miles it currently has on the engine. There are other factors in the equation as well, but many of those are out of your control, such as the state of the auto market when the loan is finally paid off.
Another area of concern when financing a used car is the extended warranty. Many used cars have the remnants of a manufacturer’s warranty on them, depending on the make and mileage on the car. However, once that manufacturer’s warranty runs out, there will be no coverage offered, other than your insurance. You can, however, add an extended warranty to the vehicle and tack the cost of the warranty onto the auto loan. Of course, this will raise the monthly payments and increase the cost of the loan by a significant amount. However, this can be a very smart decision to make.
Of course, there are many other considerations to make. Most of these apply to financing a used car or a new car. For instance, you will need to know your credit score prior to applying for financing. You will also need a copy of your credit history, so that you know there will be no nasty surprises waiting for you in the financing office. Finally, you will need to know your monthly budget. How much can you afford in monthly payments? How long will it take you to pay off the vehicle with the minimum monthly payments? Remember that the total cost of the car is just as important as the amount you have to pay each month.
As a final piece of advice, never expect to pay “blue book” value for a used car. You will finance the vehicle for the price the dealership asks, minus whatever amount you are due from trade-ins, your down payment and tough negotiating skills. Remember that almost every part of a car sale is negotiable, right down to the amount of interest charged on your auto loan.
Michael Newman
http://www.articlesbase.com/cars-articles/guide-to-financing-a-used-car-693782.html
Technorati Tags: Auto Loan, Auto Market, Car Dealership, Car Financing, Car Value, cars, Cr, Credit Score, Depreciation, Extended Warranty, Financing Option, Financing Options, Insurance, Mileage, new car, Pre Owned Vehicle, Purchasing A Used Car, Remnants, Smart Decision, warranty
Posted in new car sale | 3 Comments »
Tuesday, January 26th, 2010
I am close to purchasing my first new car. It must be under 20,000 and the most important factors are 1: gas mileage 2: must be sporty.
Toyota corrola, matrix ,yaris pontiac vibe its a toyota just made in the U.S. i have one good car cheaper then a matriix. No nissan… Honda civic yo may be able to work a deal on a suburu forester.
Technorati Tags: Gas Mileage, Good Car, HONDA, Honda Civic, Important Factors, matrix, Mileage, new car, Nissan, Pontiac, Pontiac Vibe, Purchasing Car, Sporty Toyota, Suburu Forester, Toyota, Toyota Corrola, yaris
Posted in new car | 7 Comments »
Tuesday, January 26th, 2010
I hear japan made a new car that runs on seaweed but i want to know what are things they are using to make new fuel cars with ?? Just a random question lol
I don’t know about that, but Honda has a hydrogen prototype. I’m pretty certain that other companies do as well, but Honda has had it since 2000 I think.
You can run E85, which is gasoline made up of 85% Ethanol, but your car must be a 2006 model or later, and I think it actually has to specify whether or not you can use that concentration of Ethanol (everything else is 10% minimum, and just about every car out there can handle that just fine the way it is).
There are a lot of Hybrids, and i’m certain more will be coming out, but I’m still kind of skeptical. When the batteries lose their charging ability, they need to be scrapped and replaced…big $$$. Also, it’s pretty new technology, and I’d imagine that your everyday mechanic isn’t capable or certified to work on one, so it requires dealership maintenance, which is typically more expensive by itself, not to mention how much more it would be to work on the Hybrid.
And I think that just about every diesel powered car out there can run on Biodiesel, which can be as simply as garage-refined french fry grease.
Technorati Tags: Batteries, biodiesel, Concentration, E85, ethanol, French Fry Grease, Fuel Cars, Gasoline, HONDA, hybrid, Hybrids, hydrogen, Mechanic, Models Cars, new car, new cars, New Technology, Prototype, Random Question, Seaweed
Posted in new cars | 1 Comment »
Tuesday, January 26th, 2010
Space saver wheels are proven to be very dangerous.
new car company’s must be forced to fit full size spare wheels as standard in their cars.
There is no law in Australia you must have a full size spare wheel in your car
they should be banned
Technorati Tags: Car Company, FIT, Law Australia, new car, new cars, Space Saver, Spare Wheel, Spare Wheels, Wheel
Posted in new cars | 9 Comments »
Tuesday, January 26th, 2010
I have an older car w/ full coverage. I just bought a new one, and the dealer told me my current policy would cover my new car for a while til I could add it on. I’m looking for a new company to cover my new car, but I need to know; for how long will my old policy cover my new car while I’m shopping for a new one?
standard policies state you must add the vehicle within 30 days from the date on the bill of sale for your new car. however, you should definitely check with your insurance company if you don’t have your policy handy. and make sure you’re talking to someone who’s trained, and not just the minimum wage call center people.
Technorati Tags: Bill Of Sale, Call Center, Car Shopping, Company Car, Current, Full Coverage, Handy, Insurance, Insurance Company, Insurance Cover, Minimum Wage, new car, New Company, Sale Car
Posted in new car | 3 Comments »
Tuesday, January 26th, 2010
I have a brand new black car and I want to keep the exterior looking like it rolled off the showroom floor for as long as possible.
I have had the car three weeks and I’ve been through a local "touchless" car wash about 6 times. I’ve just noticed the paint is already starting to show those tiny swirl marks when viewed up close.
Do I need to resort to hand washing with special cloths to avoid damaging the super-glossy finish any more than I already have?
Any recommendations on the best products (wash mitts, liquid soap, wax, etc) to use?
there is nothing you can do about the swirl marks that I know of. I have a Black bike and to keep it in top shape I only hand wash and turtle wax it, when sitting for longer than 8 hours it is covered. And I periodicaly wipe it down with a soft cloth so the dirt does not build up and scratch the paint.
Technorati Tags: Black Bike, Brand New, Car Paint, Car Wash, Cloths, Dirt, Hand Washing, Liquid Soap, New Black Car, new car, Shape, Showroom Floor, Soft Cloth, Swirl Marks, Turtle
Posted in new car | 3 Comments »
