In my small town I continue to see many, many 2-3 year old cars being advertised by the various dealership with 72, 78 and 84 month terms. Do any of these buyers really buy and hold a car through the 11th year or are they merely payment jumpers?
:surprise:
You're kidding, tell me your kidding. I think they may be payment jumpers. I am also wondering about how small your small town is. Many small towns (small being Hooterville type small) are very economically Depresses and not much money to be spent there. Tell me are these BHPH joints that offer 72 and 84 month terms?
FWIW I saw maybe 5-10 minutes of King of Cars. But it is my understanding that many people bury themselves in their cars and keep getting themselves deeper with each car purchase.
2011 Hyundai Sonata, 2014 BMW 428i convertible, 2015 Honda CTX700D
I'm with you on this one Mathias. To me, if I've gotta finance the car, it makes no sense buying a 2 yr old car and financing it for 4 yrs. I'd much rather get a new one even if I have to finance it for 6 yrs. At least I know what I'm getting and start off with a new car where repairs are nill the first 3 yrs. . With the better loan terms on a new car versus used, the monthly payment is real close, usually better with the new car. But I do agree with the others, if you have to finance it for 6 yrs to be able to afford the monthly payment, you're probably over your head.
This week has been pretty busy ... I have bought a Dodge 1500 Long Bed, three Chrysler Aspens and a Chrysler 300C. And my next assignment is to purchase a Lexus RX 350 or an ES once I can get everyone to make up their minds.
As for me, I am keeping the old beater for an additional 2-3 years. I had planned to buy a 2004 Chevy Impala LS but I could NOT find an agreeable price from one of my leasing companies. We were about $1600 apart between their wishing price and my buying price. Residuals must be up at the current time or something.
For my personal ride, I don't see anything that really excites me. The good fuel mileage vehicles I have driven are too darned uncomfortable. And the vehicles that are reasonably comfortable aren't giving me enough MPG when I rent them.
Ten years ago, I saw the curve for a Tacaoma 4x4 in some car mag's buying guide issue.. Motor Trend, Autoweek, I forget. The stupid thing would bring more than 1/2 it's sticker price after 5 years. That's when it dawned on me that buying new may not be so stupid after all... even though I mostly bought used, then as now.
And of course, you can only look up historical values, or rather the values of older cars NOW. Predicting the future is hazardous business... When the truck market became glutted with large SUVs -- this would be around 2000 -- the lending institutions took a bath of several thousand bucks apiece when they took their lease returns to auction.
That's cuz MBA type usually start every analysis with "if present trends continue". In the mid-90s, used truck values were through the roof because demand exceeded supply. This was no longer true in '00 and should have been obvious to anybody who checked out new-car dealerships in '97. There were acres upon acres of brand-new Tahoes an Expeditions, just waiting to saturate the market three years down the road...
Company vehicles are a matter of compensation. Cost per mile is NOT an issue. Therefore, I get the vehicles that the drivers want. That way, they are happy to hold onto the vehicles longer. Also, spending an extra $2k a year (and over time that is all it amounts to) is substantially than headhunter fees.
Prices from Chrysler are negotiated at a Corporate level and are at a very substantial discount from MSRP.
Now, when we negotiate the Peterbilt tractors that will be run 120-150k miles per year, we look carefully at the cost per mile.
the question is, why is everyone so dead set against an 84-month loan, but has no problem at all with a 3-or-4-year used-car loan that stretches the term out just as far?
Besides amortization table is also vehicle's condition. Someone who needs 84 month loan is likely NOT to maintain their vehicle, which of course will bring premature failures. At time of warranty expiration, the balance will still be 70% or so of original amount. This of course increases probability of default,
3-year old car had a known history - likely to be maintained (to keep warranty up, at least) so its condition is likely to be good enough to carry on for a few years. Perhaps enough to carry the car until the loan is paid off. Perhaps even the dealer made some work on the car, which gives it "fresh start".
So it's not when it ends, the duration and amortization are critical - they are primary risk factors, much greater than just the vehicle's age at time of final payoff.
One of my car collector clients came in yesterday with both of his ferraris. He was driving the brand new F430 and his best friend was driving the 575M.
I got to drive the F430 and I still can't whipe the grin off my face.
I have driven a lot of hot cars over the past couple of years because of the type of sales I am in but never anything like this.
M3, M5, M6 of any year cannot compare. AMG anything is whimpy and clumsy in comparison. Viper underpowered and no finesse. I could go on and on.
The closest thing I could compare it to was the Lotus Elise that I drove. The steering was that telepathic but with hand of god acceleration. Hell, I will say the F430 steering was even more precise and the Ferrari was so much more comfortable.
I could actually fit in the F430 and I didn't really fit in the Lotus. The seats were amazing and the leather was just perfect. Everything on the car was perfect.
Back in the 1990's I was a tech advisor for the ///M Register, which was a an informal group of owners of the E24 M6 as well as the E28 M5 and E34 M5. There were more than a few members who owned one or more Ferraris and used the M as their commuter car/beater. I, on the other hand, prized my M6 and drove a 1984 Thunderbird Turbo Coupe(with a manual of course) back and forth to work. There were also several owners of classic musclecars in the group. In fact, the Register's founder had a soft spot for Shelby American cars...
I could have guessed the "no finesse" part, without driving one. Some cars are just disappointments, even though the magazine writers really like them.
"You're kidding, tell me your kidding. I think they may be payment jumpers. I am also wondering about how small your small town is. Many small towns (small being Hooterville type small) are very economically Depresses and not much money to be spent there. Tell me are these BHPH joints that offer 72 and 84 month terms?"
I wish I was kidding. The biggest offender is the local Dodge/Honda dealer (interesting combo, ay!). The Honda dealer from which we bought our Civic in 94 was sold and then re sold and then sold again to the current owner who has at least one or two other dealerships in the state. Pretty much everything that made the original dealership appealing has disappeared. They now run the screamer ads, hire morons to sell cars off a truck on weekends and have allowed the service area become a den of thieves. I have to drive or bike past the dealership to and from work everyday and have to cover my nose and mouth to avoid the stench. Okay, maybe that smell is the fields being tilled on the east side of the dealership.
isell will like one what of their brighter bulb salesman told my wife and I back in 2002. We were looking to buy a new or nearly new CR-V. Noticing the one we had seen earlier in the week was sold I asked the salesman when they were expecting a new shipment. His response, "oh, Honda is discontinuing that model, wouldn't you be more interested in a Pilot--it has more space!" I feigned surprise and said, "gee, I thought the CR-V had just been redesigned and was really selling well, at least as well as most of the competing models." Later I emailed their internet salesman who had been pestering us to make a decision and reported the incident and some ridiculously bad advice we had been given in the service area as the reasons we wouldn't be buying a CR-V (we ended up with a Toyota Rav4). Well, that sent some shock waves through the dealership and my wife got a verbal apology, but the damage was done. They lost a customer and we stopped having our Civic serviced there.
I really like the Honda Fit and am contemplating replacing my trusty 94 Civic with one in the next year or two, but unless there is some dramatic change I'll have to buy in Tulsa or the first rate , no-nonsense dealership in Bartlesville, OK, which means a trip of 80 or more miles. Don't know what we'll do if we have warranty work.
Incidentally, I live in a university town of about 50,000 including about 20,000 students. We have 5 or 6 new car dealerships and quite a few BHPH lots including one called Carmart. Carmart seems to be patterning themselves after Walmart right down to the same kind of sign and lettering.
I had a customer today that went on 4 test drives, and kept asking dumb questions; like why is it easier to get into the back seat of a 4 door than a 2 door? What is the map pocket for? Why don't they make an S2000 with rear seats?
I acutally do work the Auto Shows and don't mind it. Most people are good except for a small percentage of oddballs.
Auto Show always brings out the people who think they know everything: "I heard that honda is bringing back the Prelude, when is it coming, how much is it going to be, and what engine will it use?" Me: "Don't know, try asking the kid on the net who posted that info" Or "Does the Accord coupe come in a Hybrid?" Me: "No, only the sedan" Them "Ahhh, really, I'd buy one right now if it would be in a hybrid coupe" ........yeah right
Thanks for your response. You did a lot of work for that post. I agree that some cars depreciate slowly, and may be best purchased new. Also, some depreciate fast, even thought mechanical quality and reliability are good, and should be considered for purchase used.
What I’m wondering is where depreciation data can be found for many makes and models.
I'm one of those people. I like certain things that are in very short offering: midsize wagon with manual trasmission. Not SUV, not "crossover", no "manumatic". How many of those are available? I can think of four-five, most way overpriced, none from my favorite manufacturer. I could perhaps settle for "crossover" with manual, but even those are not there.
So such questions as those you heard, although "dumb" perhaps, are futile attempts of creating situation in which dealers might ask their manufacturers if they can do something about their offering.
Mathias....I won't question your research. I've never done that much research other than general observations that a Toyota or Honda has better resale than a Ford, for example.
I think the original post was comparing the price of a used Corolla over a slightly used one. In that scenario, I'd go new because price of a 1-2 year old Corolla is so close to the cost of a new one.
Maybe I just can't get with the times. Maybe the 72-84 mo car loan is the wave of the future, for all I know. From a personal standpoint, I can't see the financial bennefit of 72-84 mo loan on any car. The amount of interest paid on the loan is so high and the depreciation amount is so great (at the end of the loan) that no matter what the purchase price was, I can't see it as a good deal. I don't even like 60 mo car loans because that puts the car out of warranty (except for Hyundai) by the time the loan amount is paid off....and the addition of service $$$$$$$$$ added to the original loan note.
Maybe I just can't get with the times. Maybe the 72-84 mo car loan is the wave of the future, for all I know.
It just might be as it is a way for people to get what they want as opposed to what they can afford. Anyway a 72 month loan is going to save you only about 15% or less in your monthly payments over a 60 month loan.
I don't even like 60 mo car loans because that puts the car out of warranty
If the car is good and dependable does it really matter?
My big issue with 72 and 84 month loans is that it makes it almost impossible to get any positive equity on the car until you hit your 5th or 6th year, unless you put a large down payment down. With no downpayment (financing the price of the car and TTL) on a 84 month loan it will take you 10 payments just to pay the TTL as opposed to 6 months with a 60 month loan.
2011 Hyundai Sonata, 2014 BMW 428i convertible, 2015 Honda CTX700D
Maybe the 72-84 mo car loan is the wave of the future
It's here now really. A 48 month lease is 'effectively' a loan with an amortization in the 72 - 84 month range (depending on interest rate and residual).
Maybe the 72-84 mo car loan is the wave of the future, for all I know. From a personal standpoint, I can't see the financial bennefit of 72-84 mo loan on any car.
I guess that I am also a dinosaur. Seven years on a car note means that you'll still be making payments when your maintenance expense starts climbing. The double "gotcha".
The irony is that it's a catch 22 for us salespeople. On one hand the 72 mo loan allows us to put customers into the car they want for the payment they want and make the sale, but on the other hand (especially in a small town area) we're shooting ourselves in the foot because they won't be back for a long time, and if they come in, say 3 or 4 years down the road, most likely we'll have to overcome negetive equity. And every time that happens the negetive number grows a little. (Unless we get some super nifty 0% deal through the manufacturer. But that's few and far between.)
I've been looking at Ford's Red Carpet leasing structure lately so that if I have a customer it will benefit I'm ready to show it to them. I think that's an ideal way to maintain your client base now and for future business.
I don't think those kind of questions are dumb, the dumb question were the ones from my oddball customer on the weekend.
But even though people may be asking for this or that or for a wagon, I don't think a manufacturer will bring in a new car/design based on what some sales people heard from customers. It's likely done through research groups, and market sutdies and analysis.
Ok, this is a personal account of an incident shortly after hurricane Katrina blew through New Orleans. I was selling Nissans at the time in Roswell, GA. I'm sure many of the other salesman in the area saw a massive influx of people from New Orleans at the time.
A terrible thing happened in New Orleans, and unfortunately, we saw a lot of bad things coming out of the city and touching down in our neighborhood. We had many people try to trade in flood damaged vehicle, people with terrible credit and lying about their job status, etc.
This was a slow Monday morning and 2 gentleman walked into our showroom and started looking at the Nissan Titan. One was about 5' 10" and the other about 6' 4", both wearing Saints Jerseys. I greeted them and welcomed them to our showroom. Neither would make eye contact with me. No problem, but just as our customers don't trust us when we don't make eye contact, the same works in reverse.
I determined that they would be interested in one of top the line LE Crew Cabs. We had one our showroom and I started to give them a hood and truck presentation. The big guy interrupts me and asks if he can just take a test drive. I said sure and asked for one of their licenses. He again interrupts me and asks if he can take it for the afternoon. I responded, "No, our dealership's policy does not allow that." Big guy starts to get angry. I tell them both that it's not my rule, and that I'm sure one of the GMC dealers down the road will be happy to oblige. Big guy not happy at all. He demands to speak with my manager. Again, I tell him he's welcome to talk with my manager, but I know that he is going to get the same answer.
We walk over to my manager's office, and I walk in with big and little guy right behind me. I say, "Manager, can these guys take this truck out for the afternoon?" Manager spins around in chair and says, "Absolutely not." Manager spins back around and keeps working. The big guy starts to be belligerent and I walk away. I'm done with the two of them. They both walk out the front door muttering and cursing.
I'm still shaking my head when the little guy walks back inside the showroom. Me. "Is there something else that you needed, sir?" Little guy. "I'm sorry about my friend, but can we still get a test drive? Me, incredulous. "Are you serious?" Little guy. "Ya, can we just get a test drive?" Me. "Ok, sure. I'll take you out, but not your friend. "Why not both of us?" "Because you both are making me super nervous, that's why." "Well, never mind then."
And the little guy walks out the front door. I then see both of them walking off of our lot and back onto the main road.
This story may seem pretty uneventful, but I'm positive I dodged a bullet on this day. They immediately spooked me, and you have to trust your instincts, especially when you deal with so many people every day. (Sidenote: GM heard the whole interchange and told me not to worry about it.)
Car sales sure can be interesting. Anyone else care to share?
"On one hand the 72 mo loan allows us to put customers into the car they want for the payment they want and make the sale, but on the other hand (especially in a small town area) we're shooting ourselves in the foot because they won't be back for a long time,..."
My wife and I are probably the worst customers for small town dealerships because we buy on a short term loan (2-3 years max) and then hold onto our cars forever (5,13 and 15 years). Our 5 year old car was bought at 2 years of age w/20K on the clock using a 2 year loan. Since it was through a Lexus dealership we paid cash and extended the Toyota Platinum Warranty which is good for 8 years, I think, so that's 6 years of warranty with no car payment. The other two cars are in excellent condition, cost almost nothing to insure or tag yearly so why trade in? I love Edmunds because I can live vicariously--and very cheaply--through others.
on Cinci radio program. A guy, name is known, comes into a dealership, gives his drivers license and takes a car for a test drive. Then goes to another dealership and does the same thing, dropping off the car from the first dealership in the process.
I think this is a hoot that he apparently can get by with this multiple times and multiple days. I believe I understood the report correctly.
I used to work at a Megamall type dealership. One Sunday as we were opening up at noon. I happened to notice two guys in their mid twenties walking across the road from the local Bob Evans. Walked right up to the front door of the dealership and without even so much as glancing at a vehicle, ask, no demand to know what our test drive policy is. I was a green pea ( new salesman) at the time so instead of my internal alarms going off, I immediately went into qualifying questions. How much are you expecting to spend per month, where do you work, do you have a trade ...etc etc etc. Not having a clue about comfort levels of customers and completely oblivious to these mens anxiety, I wore them out completely with needless qualifying until they finally lost interest and left. I walked back into the showroom expecting my sales manager to tear me a new one because I didn't T.O. these guys to a manager before they left. As I walked the sales manager and gm both came up to me and congratulated me on successfully diffusing a potentially dangerous situation. It seems that the GM and my manager had eyeballed these two when they came across the road as potential "problem children". Turns out they were right these two later test drove/stole a car at another dealership in town and left it wrecked alongside some railroad tracks.
If that isn't a perfect example of an oxymoron, I don't know what is!
Dealers here are extremely conservative when it comes to test drives -- no "take the keys and come back in an hour", I'm afraid.
But maybe they'll begin to loosen up now that crime in the city is at an historic low (safest big city in the US by far) and insurance fraud of all stripes is public enemy number 1.
i have turned over most vehicles before the maintenance became an issue. next time i'll have to figure that in. other than that i have no problem with a long loan. i don't put a lot of mileage on any single vehicle on a yearly basis.
2024 Ford F-150 STX, 2023 Ford Explorer ST, 91 Mustang GT vert
My dealership is in Pullman, WA (neighbor town to Moscow, ID.) I was talking to the other sales guy that's been here 25 or so years and he said the test drive was out of Lewiston, not Moscow (Granted still a reletivly quiet, small town). They DID pass by this area on thier way to Montana where they dropped off the body though. And it's possible he was killed in Moscow. I don't know all the details, I just remember it being brought up in a meeting recently.
That kind of stuff is crazy. You really do have to be careful.
brit.. there is a guy not too far from where you work that has an 'enzo'. my neighbor got to see his collection and took a bunch of digi pics. we spent a couple of hours blowing them up to look at every little detail. made us feel 'almost famous'.
2024 Ford F-150 STX, 2023 Ford Explorer ST, 91 Mustang GT vert
You said 'or the first rate , no-nonsense dealership in Bartlesville, OK,'.
Are you aware this dealership sold earlier this year?
I 'think' the new owners are attempting to keep the 'first rate, no-nonsense' approach to selling cars, but since I bought my Honda just before the sale, I really don't know.
Comments
:surprise:
You're kidding, tell me your kidding. I think they may be payment jumpers. I am also wondering about how small your small town is. Many small towns (small being Hooterville type small) are very economically Depresses and not much money to be spent there. Tell me are these BHPH joints that offer 72 and 84 month terms?
FWIW I saw maybe 5-10 minutes of King of Cars. But it is my understanding that many people bury themselves in their cars and keep getting themselves deeper with each car purchase.
2011 Hyundai Sonata, 2014 BMW 428i convertible, 2015 Honda CTX700D
.
With the better loan terms on a new car versus used, the monthly payment is real close, usually better with the new car. But I do agree with the others, if you have to finance it for 6 yrs to be able to afford the monthly payment, you're probably over your head.
It has always made me wonder what it takes and how long is it going to take to wake these people up.
Oh well, life is just a big happy game for some people and it's never so bad that SOMETHING can't be worked out.
Not my lifestyle,
jmonroe
'15 Genesis V8 with Ultimate Package and '18 Legacy Limited 6 cyl
As for me, I am keeping the old beater for an additional 2-3 years. I had planned to buy a 2004 Chevy Impala LS but I could NOT find an agreeable price from one of my leasing companies. We were about $1600 apart between their wishing price and my buying price. Residuals must be up at the current time or something.
For my personal ride, I don't see anything that really excites me. The good fuel mileage vehicles I have driven are too darned uncomfortable. And the vehicles that are reasonably comfortable aren't giving me enough MPG when I rent them.
WHY do you buy cars that depreciate like a rock?
It seems your employees can ask for whatever they want?
Are you using "depreciation curve" as a figure of speech, or is there a way to look up depreciation rates without doing primary research?
Ten years ago, I saw the curve for a Tacaoma 4x4 in some car mag's buying guide issue.. Motor Trend, Autoweek, I forget. The stupid thing would bring more than 1/2 it's sticker price after 5 years. That's when it dawned on me that buying new may not be so stupid after all... even though I mostly bought used, then as now.
Anyway, for an Accord I actually did the work and I posted the link a few messages ago... but here it is again:
http://www.msu.edu/~steine13/cars.html.
And of course, you can only look up historical values, or rather the values of older cars NOW. Predicting the future is hazardous business... When the truck market became glutted with large SUVs -- this would be around 2000 -- the lending institutions took a bath of several thousand bucks apiece when they took their lease returns to auction.
That's cuz MBA type usually start every analysis with "if present trends continue". In the mid-90s, used truck values were through the roof because demand exceeded supply. This was no longer true in '00 and should have been obvious to anybody who checked out new-car dealerships in '97. There were acres upon acres of brand-new Tahoes an Expeditions, just waiting to saturate the market three years down the road...
-Mathias
Company vehicles are a matter of compensation. Cost per mile is NOT an issue. Therefore, I get the vehicles that the drivers want. That way, they are happy to hold onto the vehicles longer. Also, spending an extra $2k a year (and over time that is all it amounts to) is substantially than headhunter fees.
Prices from Chrysler are negotiated at a Corporate level and are at a very substantial discount from MSRP.
Now, when we negotiate the Peterbilt tractors that will be run 120-150k miles per year, we look carefully at the cost per mile.
Besides amortization table is also vehicle's condition. Someone who needs 84 month loan is likely NOT to maintain their vehicle, which of course will bring premature failures. At time of warranty expiration, the balance will still be 70% or so of original amount. This of course increases probability of default,
3-year old car had a known history - likely to be maintained (to keep warranty up, at least) so its condition is likely to be good enough to carry on for a few years. Perhaps enough to carry the car until the loan is paid off. Perhaps even the dealer made some work on the car, which gives it "fresh start".
So it's not when it ends, the duration and amortization are critical - they are primary risk factors, much greater than just the vehicle's age at time of final payoff.
2018 430i Gran Coupe
I got to drive the F430 and I still can't whipe the grin off my face.
I have driven a lot of hot cars over the past couple of years because of the type of sales I am in but never anything like this.
M3, M5, M6 of any year cannot compare. AMG anything is whimpy and clumsy in comparison. Viper underpowered and no finesse. I could go on and on.
The closest thing I could compare it to was the Lotus Elise that I drove. The steering was that telepathic but with hand of god acceleration. Hell, I will say the F430 steering was even more precise and the Ferrari was so much more comfortable.
I could actually fit in the F430 and I didn't really fit in the Lotus. The seats were amazing and the leather was just perfect. Everything on the car was perfect.
There were also several owners of classic musclecars in the group. In fact, the Register's founder had a soft spot for Shelby American cars...
I could have guessed the "no finesse" part, without driving one. Some cars are just disappointments, even though the magazine writers really like them.
Sounds like you had a fun day. I'm jealous!
2011 Hyundai Sonata, 2014 BMW 428i convertible, 2015 Honda CTX700D
I wish I was kidding. The biggest offender is the local Dodge/Honda dealer (interesting combo, ay!). The Honda dealer from which we bought our Civic in 94 was sold and then re sold and then sold again to the current owner who has at least one or two other dealerships in the state. Pretty much everything that made the original dealership appealing has disappeared. They now run the screamer ads, hire morons to sell cars off a truck on weekends and have allowed the service area become a den of thieves. I have to drive or bike past the dealership to and from work everyday and have to cover my nose and mouth to avoid the stench. Okay, maybe that smell is the fields being tilled on the east side of the dealership.
isell will like one what of their brighter bulb salesman told my wife and I back in 2002. We were looking to buy a new or nearly new CR-V. Noticing the one we had seen earlier in the week was sold I asked the salesman when they were expecting a new shipment. His response, "oh, Honda is discontinuing that model, wouldn't you be more interested in a Pilot--it has more space!" I feigned surprise and said, "gee, I thought the CR-V had just been redesigned and was really selling well, at least as well as most of the competing models." Later I emailed their internet salesman who had been pestering us to make a decision and reported the incident and some ridiculously bad advice we had been given in the service area as the reasons we wouldn't be buying a CR-V (we ended up with a Toyota Rav4). Well, that sent some shock waves through the dealership and my wife got a verbal apology, but the damage was done. They lost a customer and we stopped having our Civic serviced there.
I really like the Honda Fit and am contemplating replacing my trusty 94 Civic with one in the next year or two, but unless there is some dramatic change I'll have to buy in Tulsa or the first rate , no-nonsense dealership in Bartlesville, OK, which means a trip of 80 or more miles. Don't know what we'll do if we have warranty work.
Incidentally, I live in a university town of about 50,000 including about 20,000 students. We have 5 or 6 new car dealerships and quite a few BHPH lots including one called Carmart. Carmart seems to be patterning themselves after Walmart right down to the same kind of sign and lettering.
Gogiboy
A quick look on Hoovers shows that their headquarters is in Bentonville, AR so its a good bet that it is owned buy the Waltons.
2011 Hyundai Sonata, 2014 BMW 428i convertible, 2015 Honda CTX700D
urghhhhhhhhhhh. :mad: :confuse:
2016 Audi A7 3.0T S Line, 2021 Subaru WRX
If you want to REALLY hear a bunch of dumb questions, try working the Auto Show sometime!
Never again!
Auto Show always brings out the people who think they know everything: "I heard that honda is bringing back the Prelude, when is it coming, how much is it going to be, and what engine will it use?" Me: "Don't know, try asking the kid on the net who posted that info"
Or
"Does the Accord coupe come in a Hybrid?" Me: "No, only the sedan" Them "Ahhh, really, I'd buy one right now if it would be in a hybrid coupe" ........yeah right
People always want what they can't get.
2016 Audi A7 3.0T S Line, 2021 Subaru WRX
What I’m wondering is where depreciation data can be found for many makes and models.
So such questions as those you heard, although "dumb" perhaps, are futile attempts of creating situation in which dealers might ask their manufacturers if they can do something about their offering.
2018 430i Gran Coupe
I think the original post was comparing the price of a used Corolla over a slightly used one. In that scenario, I'd go new because price of a 1-2 year old Corolla is so close to the cost of a new one.
Maybe I just can't get with the times. Maybe the 72-84 mo car loan is the wave of the future, for all I know. From a personal standpoint, I can't see the financial bennefit of 72-84 mo loan on any car. The amount of interest paid on the loan is so high and the depreciation amount is so great (at the end of the loan) that no matter what the purchase price was, I can't see it as a good deal. I don't even like 60 mo car loans because that puts the car out of warranty (except for Hyundai) by the time the loan amount is paid off....and the addition of service $$$$$$$$$ added to the original loan note.
It just might be as it is a way for people to get what they want as opposed to what they can afford. Anyway a 72 month loan is going to save you only about 15% or less in your monthly payments over a 60 month loan.
I don't even like 60 mo car loans because that puts the car out of warranty
If the car is good and dependable does it really matter?
My big issue with 72 and 84 month loans is that it makes it almost impossible to get any positive equity on the car until you hit your 5th or 6th year, unless you put a large down payment down. With no downpayment (financing the price of the car and TTL) on a 84 month loan it will take you 10 payments just to pay the TTL as opposed to 6 months with a 60 month loan.
2011 Hyundai Sonata, 2014 BMW 428i convertible, 2015 Honda CTX700D
It's here now really. A 48 month lease is 'effectively' a loan with an amortization in the 72 - 84 month range (depending on interest rate and residual).
2011 Hyundai Sonata, 2014 BMW 428i convertible, 2015 Honda CTX700D
I guess that I am also a dinosaur. Seven years on a car note means that you'll still be making payments when your maintenance expense starts climbing. The double "gotcha".
I've been looking at Ford's Red Carpet leasing structure lately so that if I have a customer it will benefit I'm ready to show it to them. I think that's an ideal way to maintain your client base now and for future business.
But even though people may be asking for this or that or for a wagon, I don't think a manufacturer will bring in a new car/design based on what some sales people heard from customers. It's likely done through research groups, and market sutdies and analysis.
2016 Audi A7 3.0T S Line, 2021 Subaru WRX
" What's the difference between an LX and an EX?"
Not a dumb question but after the 88th time I'm tired of it.
Then I get the....
" Why doesn't Honda......?"
" You would THINK Honda would...."
Just stay away from the cars that attract the flakes and I know you know the models I'm talking about!
I wish that the auto websites in general would do a better job at explaining what the package differences are.
I get those questions from my drivers and then spend a lot of time hunting for the information which is not always readily apparent.
A terrible thing happened in New Orleans, and unfortunately, we saw a lot of bad things coming out of the city and touching down in our neighborhood. We had many people try to trade in flood damaged vehicle, people with terrible credit and lying about their job status, etc.
This was a slow Monday morning and 2 gentleman walked into our showroom and started looking at the Nissan Titan. One was about 5' 10" and the other about 6' 4", both wearing Saints Jerseys. I greeted them and welcomed them to our showroom. Neither would make eye contact with me. No problem, but just as our customers don't trust us when we don't make eye contact, the same works in reverse.
I determined that they would be interested in one of top the line LE Crew Cabs. We had one our showroom and I started to give them a hood and truck presentation. The big guy interrupts me and asks if he can just take a test drive. I said sure and asked for one of their licenses. He again interrupts me and asks if he can take it for the afternoon. I responded, "No, our dealership's policy does not allow that." Big guy starts to get angry. I tell them both that it's not my rule, and that I'm sure one of the GMC dealers down the road will be happy to oblige. Big guy not happy at all. He demands to speak with my manager. Again, I tell him he's welcome to talk with my manager, but I know that he is going to get the same answer.
We walk over to my manager's office, and I walk in with big and little guy right behind me. I say, "Manager, can these guys take this truck out for the afternoon?" Manager spins around in chair and says, "Absolutely not." Manager spins back around and keeps working. The big guy starts to be belligerent and I walk away. I'm done with the two of them. They both walk out the front door muttering and cursing.
I'm still shaking my head when the little guy walks back inside the showroom.
Me. "Is there something else that you needed, sir?"
Little guy. "I'm sorry about my friend, but can we still get a test drive?
Me, incredulous. "Are you serious?"
Little guy. "Ya, can we just get a test drive?"
Me. "Ok, sure. I'll take you out, but not your friend.
"Why not both of us?"
"Because you both are making me super nervous, that's why."
"Well, never mind then."
And the little guy walks out the front door. I then see both of them walking off of our lot and back onto the main road.
This story may seem pretty uneventful, but I'm positive I dodged a bullet on this day. They immediately spooked me, and you have to trust your instincts, especially when you deal with so many people every day. (Sidenote: GM heard the whole interchange and told me not to worry about it.)
Car sales sure can be interesting. Anyone else care to share?
My wife and I are probably the worst customers for small town dealerships because we buy on a short term loan (2-3 years max) and then hold onto our cars forever (5,13 and 15 years). Our 5 year old car was bought at 2 years of age w/20K on the clock using a 2 year loan. Since it was through a Lexus dealership we paid cash and extended the Toyota Platinum Warranty which is good for 8 years, I think, so that's 6 years of warranty with no car payment. The other two cars are in excellent condition, cost almost nothing to insure or tag yearly so why trade in? I love Edmunds because I can live vicariously--and very cheaply--through others.
Gogiboy
just reply - Oh maybe three Grand !
I think this is a hoot that he apparently can get by with this multiple times and multiple days. I believe I understood the report correctly.
2014 Malibu 2LT, 2015 Cruze 2LT,
Turns out they were right these two later test drove/stole a car at another dealership in town and left it wrecked alongside some railroad tracks.
Oh the luck of the newbies sometimes....
I'm glad our store is in an upscale area but trouble can happen anywhere.
Years ago a husband and wife murdered a car salesman in Moscow Idaho of all places!
It's particularly shocking because Moscow is an incredibly quiet and peaceful college town.
tidester, host
We are at risk and it doesn't have to be in a bad area.
And, by a husband and wife no less!
link title
2016 Audi A7 3.0T S Line, 2021 Subaru WRX
If that isn't a perfect example of an oxymoron, I don't know what is!
Dealers here are extremely conservative when it comes to test drives -- no "take the keys and come back in an hour", I'm afraid.
But maybe they'll begin to loosen up now that crime in the city is at an historic low (safest big city in the US by far) and insurance fraud of all stripes is public enemy number 1.
2011 Hyundai Sonata, 2014 BMW 428i convertible, 2015 Honda CTX700D
other than that i have no problem with a long loan. i don't put a lot of mileage on any single vehicle on a yearly basis.
That kind of stuff is crazy. You really do have to be careful.
Are you aware this dealership sold earlier this year?
I 'think' the new owners are attempting to keep the 'first rate, no-nonsense' approach to selling cars, but since I bought my Honda just before the sale, I really don't know.