::Barloworld ::That new cars sale could have strings attached
There seems to be a new cars sale going on at any given moment. Amidst depressed consumer demand, dealers have to make a plan to move their unsold stock out of the showroom. Some are making extremely little (or no) money per unit, in exchange for factory credits and incentives for units sold and to boost workshop traffic.
Dealers are doing everything to sweeten the deal. Lots of discount, trade-in assistance and extras thrown in free are just some of the tactics employed. Manufacturers’ in house financing houses are offering low-interest deals, payment holidays and very low instalments in exchange for frightful residuals. No stone is left unturned in the event of planning successful new cars sale figures.
Remember that dealers will often discount cars heavily if they are in run-out and are going to be replaced by facelift of completely new models. Such a run-out model should be sought after at a new cars sale since it can make for a very good deal, but one must know what one is buying. For the buyer that does not want a car that has become a previous model overnight, it might not be a very special deal after all.
If a model range is not in run-out, yet it is being flogged at an amazing discount, one has to ask why. It might be such a slow selling line that the dealer cannot get rid of them without heavy discounts. The buyer will more than likely not be able to get rid of it easily either, come sell-on time. Keep in mind too, that some very low instalments are arrived at through a huge residual. Be aware of all the fine print before signing that contract.
One has to conclude that a new cars sale usually comes with a trade-off. Reliable top sellers are seldom sold at huge discounts. If a car is heavily discounted, it is usually a slow seller or a run-out model and the sensible buyer might want neither. Still, a top seller run-out can be an excellent deal and provide years of happy motoring if the buyer is not to vain about having the latest and greatest the market has to offer.
