The Cellar - NOW is the time to buy a new car

Usually, the week between xmas and new years is perceived to be the very best time to buy that new car. This week, however, is the week that will make the difference in many dealer's months.

There is a trend lately that is causing some very real stress and mild desperation among auto dealers. Retroactive dealer rebates. Evil things. Chrysler was doing it for the last 4 years I worked at Family Jeep, and Nissan began dabbling a couple years ago. It sucks for us because if you don't achieve your quota, you can really get hosed.

Here's how they work:
The manufacturer sets a seemingly arbitrary goal for a certain number of cars sold. (I'm sure some MBA has a formula that is as accurate as WH.IP's betting formula) If you reach that number, you get say...$300 per car back to the 1st unit sold. If you hit 115% you get $700 back to unit 1.

So, you have to behave as though you already have that money to be competetive...or you won't sell enough to reach your mark. Well, no dealer wants to be facing a BIG number in that last week in this uncertain climate. If it doesn't look like the retro will be reached, you have to stop giving below invoice prices or suffer actual losses.

We had a long meeting this morning to decide as a group if we should go balls out and give $40,000 away on the hope of getting back $80,000 in retro money. So, today the salesmen are all calling their customers and offering them $20-$30 less per month than the last number they heard from us. We will guage by this reaction whether the market CAN BE driven by numbers, or if people are just not pulling the trigger regardless.

If today goes well, then we should have a good week. If we have a good week this week, as far as units goes, then the heat comes off a little bit for that last week of the year.

SO, as It says in the title....if you are thinking about a new car....come buy a Nissan from Jim!
yay!