NOW is the time to buy a new car

lumberjim · 12-15-2008, 10:56 AM

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!

lumberjim · 12-15-2008, 10:58 AM

because one way or another.....

lookout123 · 12-15-2008, 11:04 AM

That is EFFING great jim!

wolf · 12-15-2008, 11:07 AM

By happenstance this tends to be the time of year when I buy new cars.

I'm not in the market this year, though. Need to beat the Mercury into the ground first.

barefoot serpent · 12-15-2008, 11:52 AM

Quote:

Originally Posted by wolf

Need to beat the Merc into the ground first.

go easy on him; I'm sure he means well.

Cicero · 12-15-2008, 12:00 PM

Who needs a car?!? Go get one from Jim.

Cloud · 12-15-2008, 01:58 PM

hmm. A lot of people I know are sort of waiting to see if they come out with new, more fuel-efficient, or viable alternative energy models, and are not buying cars this year or the next at all.

TheMercenary · 12-15-2008, 02:42 PM

We are actually thinking of buying 2 cars this week for 2 of our 3 kids. That is if we get the trade in we want.

footfootfoot · 12-15-2008, 05:02 PM

Dude, WTF? You've got troops stationed at your dealership? Things must be getting out of control down there.

classicman · 12-15-2008, 05:07 PM

Quote:

Originally Posted by wolf

Need to beat the Mercury into the ground first.

That shouldn't take too long.

zippyt · 12-15-2008, 05:40 PM

http://bitsandpieces.us/wp-content/u...nd-20hobbs.jpg

12-15-2008, 10:56 AM	#1
lumberjim I can hear my ears Join Date: Oct 2003 Posts: 25,571	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! __________________ This body holding me reminds me of my own mortality Embrace this moment, remember We are eternal, all this pain is an illusion ~MJKeenan

12-15-2008, 10:58 AM	#2
lumberjim I can hear my ears Join Date: Oct 2003 Posts: 25,571	because one way or another..... Attached Images __________________ This body holding me reminds me of my own mortality Embrace this moment, remember We are eternal, all this pain is an illusion ~MJKeenan

12-15-2008, 11:04 AM	#3
lookout123 changed his status to single Join Date: Apr 2004 Location: Right behind you. No, the other side. Posts: 10,308	That is EFFING great jim! __________________ Getting knocked down is no sin, it's not getting back up that's the sin

12-15-2008, 11:07 AM	#4
wolf lobber of scimitars Join Date: Jul 2001 Location: Phila Burbs Posts: 20,774	By happenstance this tends to be the time of year when I buy new cars. I'm not in the market this year, though. Need to beat the Mercury into the ground first. __________________ wolf eht htiw og "Conspiracies are the norm, not the exception." --G. Edward Griffin The Creature from Jekyll Island High Priestess of the Church of the Whale Penis

12-15-2008, 12:00 PM	#6
Cicero Looking forward to open mic night. Join Date: Oct 2006 Location: New Mexico Posts: 5,148	Who needs a car?!? Go get one from Jim. __________________ Show me a sane man, and I will cure him for you.- Carl Jung

12-15-2008, 01:58 PM	#7
Cloud ... Join Date: Feb 2007 Posts: 8,360	hmm. A lot of people I know are sort of waiting to see if they come out with new, more fuel-efficient, or viable alternative energy models, and are not buying cars this year or the next at all. __________________ "Guard your honor. Let your reputation fall where it will. And outlive the bastards!"

12-15-2008, 02:42 PM	#8
TheMercenary “Hypocrisy: prejudice with a halo” Join Date: Mar 2007 Location: Savannah, Georgia Posts: 21,393	We are actually thinking of buying 2 cars this week for 2 of our 3 kids. That is if we get the trade in we want. __________________ Anyone but the this most fuked up President in History in 2012!

12-15-2008, 05:02 PM	#9
footfootfoot To shreds, you say? Join Date: Aug 2004 Location: in the house and on the street-how many, many feet we meet! Posts: 18,449	Dude, WTF? You've got troops stationed at your dealership? Things must be getting out of control down there. __________________ The internet is a hateful stew of vomit you can never take completely seriously. - Her Fobs

12-15-2008, 05:40 PM	#11
zippyt LONG LIVE KING ZIPPY! per Feetz Join Date: Mar 2003 Location: Arkansas Posts: 7,661	http://bitsandpieces.us/wp-content/u...nd-20hobbs.jpg __________________ "Success is getting what you want. Happiness is wanting what you get. " Brother Dave Gardner

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