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Stuff happens..... Posted by Mike Lynch [Email] (#81) [Profile/Gallery] (more from Mike Lynch) on Thu, 11 Nov 2004 15:11:05 In Reply to: Why do some dealers hold onto cars so tightly?, awg, Wed, 10 Nov 2004 19:19:25 Members do not see ads below this line. - Help Keep This Site Online - Signup |
Once a unit goes past a certain time frame, it's almost impossible for the dealer to sell it for a fair price. A two year old unit, like a 2003, even after taking the maximum incentive availible at the time, costs the dealer way more than the fair retail value.
So in order for a dealer to sell a two year old *new* unit (punched or otherwise reported sold so technically used except the car hasn't had an owner yet) some sales manager has to sign his name to a deal with a major loss. Most dealers will just wait and try and get lucky. Lucky in the sense that a buyer will come along who's not overly savvy and likes the car. This buyer may not realize that they could get a current model for about the same money. Lucky in the sense that sometimes people just want a car and the dealer can direct them towards this car.
Carrying one (or a couple) extra car in inventory doesn't really affect your flooring (interest paid on inventory) bill significantly, a sales manager taking a loosing deal sticks out like a sore thumb.
posted by 63.197.222...
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