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Smart Shopper Got a Quick Question for a Car Dealer?
2394 messages, Last post on Nov 03, 2009 at 11:03 AM
You are in the Smart Shopper Forum. Your Hosts are kirstie_h & tidester
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Replying to: boomchek (Jan 06, 2009 1:13 pm) Farmers have a saying "Your first loss is your best loss" meaning it is better to get rid of a depreciating asset like tomatoes (or cars) sooner rather than later. I never understood the logic of keeping a lot queen around forever as it loses value. |
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Replying to: oldfarmer50 (Jan 06, 2009 2:47 pm) 
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Replying to: oldfarmer50 (Jan 06, 2009 2:47 pm) Not only does it lose value it also costs the dealership to keep it in inventory. |
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Replying to: Mr_Shiftright (Jan 06, 2009 3:04 pm) Leave it on the lot long enough and it will stink to high heaven. 
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Replying to: boomchek (Jan 06, 2009 1:13 pm) the dealer had 4 of the exact same car until about a week before i bought mine. someone bought 1 of the 4, then i bought mine. of course a couple of weeks after i bought mine, the incentives got better. i remember it, but i don't really think about the extra money i could have saved. |
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Replying to: oldfarmer50 (Jan 06, 2009 4:53 pm) |
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Replying to: mursilis (Jan 06, 2009 12:52 pm) Dealers, like everyone else, hate losing money. Since they own the cars already, they can wait for the right buyer. There is an axiom in the car biz that there is an a$$ for every seat.
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Replying to: volvomax (Jan 07, 2009 12:22 pm) Say its a $20K car and they could have sold it for a $2K loss two years ago. Wouldn't it make more sense to take the $2K loss and use the $18K to build up inventory that sells faster and earn $2K or more in two years or keep it for two years and still have $20K sunk in something that doesn't move? Sometimes you have to take a loss and take it early.
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Replying to: snakeweasel (Jan 07, 2009 3:08 pm) Most dealers won't take a loss at all if they can help it. Even if it means sitting on inventory. If you have $3-5 million wrapped up in inventory, $20k isn't gonna make you or break you. However, taking losses on cars can and does get sales managers fired. Owners don't mind spending $$ on inventory. They DO mind it when you take a hit. Sales managers know this, hence the tendency to keep a car until you get what you want for it. These are new 07's in question, and sometimes you simply don't have a customer. Even if you do want to take a small loss. You can't do anything until you have a buyer. We had a leftover 07 XC90 until July 08. no buyer interested in the car. Finally, we found someone who paid what we wanted. We got out of the car, no loss.
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Replying to: volvomax (Jan 07, 2009 5:22 pm)
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