Latest vehicle purchase incentives

It's just the same old shell game. All that 0%/84mo is going to do is get you a higher out the door cost for that truck. They're not going to sell that truck for $29900 and 0%/84mo.

Some of the knuckleheads I work with have been financing their bro dozers for 72-84mo for years now. They were ahead of their time! LOL
 
Originally Posted by macarose
It boggles my mind that so many folks are still opting for a new vehicle even though the market has been overproducing cars and trucks for near 7 years now.

Thanks to leasing and rentals, there is usually an extra six to seven million vehicles every year that are built to last well over a decade but are only used for 3 years at most.

The deals I am getting at the wholesale dealer auctions are incredibly low at the moment. Even trucks are going for cheap.


THIS is what I'm curious about. Also, how many late model vehicles NEED to be sold because "non-essential" workers can't afford the payments any longer or need cash, if owned outright?
 
Originally Posted by JTK


Some of the knuckleheads I work with have been financing their bro dozers for 72-84mo for years now. They were ahead of their time! LOL


Or at the interest rates they were likely at, they weren't!

After getting my Legacy for so cheap used I've sworn to myself that I'll never buy new again. With that said, 120 months at 0% AND incentives can be enticing...
 
Originally Posted by mk378
The zero APR often means you'll forego a substantial rebate that otherwise everyone gets. So the actual street price of the truck and the resale value reflects the rebate not what you're going to finance. The sticker price on GM has always been greatly inflated.

No it doesn't. It zero APR and 10-12K in rebates. The car market is in the deep end bad.
 
Did production resume 100% though, I don't think the real deal will be here until the production resume after the lockdown is lifted and the rental agency stopped taking delivery of new cars.
 
Dealers are going to be begging for incentives because even with production halted, the supply of vehicles has grown by about 6 additional weeks of supply if I'm reading this correctly.

https://www.coxautoinc.com/market-insights/auto-market-weekly-summary-05-11-2020/

When 20% of the workforce goes on unemployment, it's hard to get qualified for a vehicle. Sales will be fewer. So part of the growth in days supply is the slow rate of sales.

Or, gasp, those that are getting MORE in UI than they got in wages due to the $600/week kicker, might be tempted to buy something they cannot normally afford.

It's going to be interesting.
 
Originally Posted by macarose
The deals I am getting at the wholesale dealer auctions are incredibly low at the moment. Even trucks are going for cheap.

I've been looking at 2000+ Rangers and Tacoma trucks.
While the used supply on CL is increasing, nobody seems to be selling and the prices are remaining constant (nobody dropping prices, despite being grossly overpriced to begin with - compared to prices on VMR Canada).

...interesting how things will progress.
 
being in longterm debt to own a depreciating asset is an undesirable event. imho never buy a car based on a monthly payment or interest rate. instead buy the best value, based on the otd price, and always carefully within one's means. a loan should be only a temporary convenience to be paid off way early, asap, i.e. in a few months. i bet that there is an inverse relationship between high balance 0% 84 month loans for tarted up cars/trucks and healthy retirement accounts.
 
Originally Posted by dave1251
Originally Posted by mk378
The zero APR often means you'll forego a substantial rebate that otherwise everyone gets. So the actual street price of the truck and the resale value reflects the rebate not what you're going to finance. The sticker price on GM has always been greatly inflated.

No it doesn't. It zero APR and 10-12K in rebates. The car market is in the deep end bad.

100% agree. They may offer you either of the 2, but you can negotiate, especially now.
Treat the price, method of payment and trade (if there is one) as 3 separate parts of the deal.
Take the ones that work for you and leave the rest.
Walk away and tell them you are off to blah-blah-blah dealership. They will probably call your cell before you get there.
Good luck.

Zero percent financing is free money.
 
Last edited:
Originally Posted by ryster
People don't want the maintenance bills associated with keeping a car more than 36 months. Especially European cars. So they would rather lease every 3 years and never build up any equity. It is a flawed plan, because they end up putting the same, if not more, money down on the new lease that they would have spent getting the routine maintenance done and just buying the car originally. Vehicles don't change that much in 3 years, unless you are leasing a vehicle at the end of it's current design run.


Oh yeah, I keep buying the Euro parts. The most expensive part of it is the stuff only the manufacturer makes. Still working on my front end, just did struts which included springs, mounts, bumper stop and cover. Already did ball joints, tie rods, sway bar links, control arms, cv joint boots, etc. Still got a few things to chase down.

Anyway while it looks like the sky is falling, traffic is only down 50% and unemployment is at 14.7. That's probably understated, but still plenty of people who have jobs and while 17 million new cars were sold last year, 40 million were used cars. Sales will be down, but they're not going to 0.

https://data.bls.gov/timeseries/LNS14000000
 
Originally Posted by dave1251
Originally Posted by mk378
The zero APR often means you'll forego a substantial rebate that otherwise everyone gets. So the actual street price of the truck and the resale value reflects the rebate not what you're going to finance. The sticker price on GM has always been greatly inflated.

No it doesn't. It zero APR and 10-12K in rebates. The car market is in the deep end bad.


Must be regional, then, because out here the dealers state it is one or the other. 0% or the rebate. They are not combining them.

That might change in a month or two when we are still shut down.
 
Originally Posted by Wolf359
Anyway while it looks like the sky is falling, traffic is only down 50% and unemployment is at 14.7. That's probably understated, but still plenty of people who have jobs and while 17 million new cars were sold last year, 40 million were used cars. Sales will be down, but they're not going to 0.

+1
Q1 sales figures for 2020 of the new Ranger are actually UP compared to the same period last year despite the current economic situation.
 
Originally Posted by javacontour
Dealers are going to be begging for incentives because even with production halted, the supply of vehicles has grown by about 6 additional weeks of supply if I'm reading this correctly.

https://www.coxautoinc.com/market-insights/auto-market-weekly-summary-05-11-2020/

When 20% of the workforce goes on unemployment, it's hard to get qualified for a vehicle. Sales will be fewer. So part of the growth in days supply is the slow rate of sales.

Or, gasp, those that are getting MORE in UI than they got in wages due to the $600/week kicker, might be tempted to buy something they cannot normally afford.

It's going to be interesting.


Be very careful reading those numbers. Those days supply are based on current sales trends. Supply would have been down 12 days if the current sales trends had continued. It's only up because sales have slowed. If there is pent up demand and it shoots back up again, then supply will shrink pretty quickly. Lately I've noticed that some stores that were closed before were opening up again and also that there are lines at some stores where there weren't any before. My guess is that people are tired of being at home even though the stay at home order is still in effect.
 
Originally Posted by jstert
being in longterm debt to own a depreciating asset is an undesirable event. imho never buy a car based on a monthly payment or interest rate. instead buy the best value, based on the otd price, and always carefully within one's means. a loan should be only a temporary convenience to be paid off way early, asap, i.e. in a few months. i bet that there is an inverse relationship between high balance 0% 84 month loans for tarted up cars/trucks and healthy retirement accounts.



I've got a pretty decent 401(k) and pension, in my 30s, and I'm all for 0% loans for as long as possible. As others have OBVIOUSLY pointed out, the DEAL needs to be good, NOT just MSRP @ 0%. Well, that was before I swore off buying new. I've actually got, gasp, TWO 0% interest credit cards with thousands of dollars on them for recent large purchases and just because transfers. I will pay them off a month before the rate changes and not a moment sooner. I missed out on points for these purchases on my other credit cards, but have a lot more money in the bank, were things to have gotten really bad!

I haven't looked at any new cars in the past couple of years, but the numbers then for new vs used weren't even close, factoring in total cost of ownership when comparing new vs the 3 year-old Legacy I ended up with.

As others have also said, it will be interesting to see how the used and new markets react in another month or so, if things stay the way or similarly to the way they are. It's not as if EVERYONE will be going back to work immediately, especially if social distancing limits customer throughput in any significant way.
 
I couldn't even begin to fathom a car payment for 84 months. Of course at my age if I can't pay cash it doesn't get bought.
 
I think I noted that as I said part of the growth in days supply was the slow sales rate.

But it doesn't hurt to repeat the idea.

So near zero production for a month or so, and yet the supply is "growing" meaning dealers who are paying floor plan interest want something to entice shoppers into the showroom.

If rental car companies dump a bunch of used cars into the market, it's going to be tough for a while.

A savvy shopper should be able to get a good deal if they have cash to spend.

Originally Posted by Wolf359
Originally Posted by javacontour
Dealers are going to be begging for incentives because even with production halted, the supply of vehicles has grown by about 6 additional weeks of supply if I'm reading this correctly.

https://www.coxautoinc.com/market-insights/auto-market-weekly-summary-05-11-2020/

When 20% of the workforce goes on unemployment, it's hard to get qualified for a vehicle. Sales will be fewer. So part of the growth in days supply is the slow rate of sales.

Or, gasp, those that are getting MORE in UI than they got in wages due to the $600/week kicker, might be tempted to buy something they cannot normally afford.

It's going to be interesting.


Be very careful reading those numbers. Those days supply are based on current sales trends. Supply would have been down 12 days if the current sales trends had continued. It's only up because sales have slowed. If there is pent up demand and it shoots back up again, then supply will shrink pretty quickly. Lately I've noticed that some stores that were closed before were opening up again and also that there are lines at some stores where there weren't any before. My guess is that people are tired of being at home even though the stay at home order is still in effect.
 
Originally Posted by ryster
Originally Posted by dave1251
Originally Posted by mk378
The zero APR often means you'll forego a substantial rebate that otherwise everyone gets. So the actual street price of the truck and the resale value reflects the rebate not what you're going to finance. The sticker price on GM has always been greatly inflated.

No it doesn't. It zero APR and 10-12K in rebates. The car market is in the deep end bad.


Must be regional, then, because out here the dealers state it is one or the other. 0% or the rebate. They are not combining them.

That might change in a month or two when we are still shut down.



You can go to the manufacturers website's and see that most rebate versus finance deals cannot be combined. I'm not saying the price isn't negotiable but the dealer will not get both offers from the factory....either/or is what I see. Show me proof that you can get both and I may be in the market myself soon.
 
I'm debating putting a LSD a Dinan flash tune, and some M Performance interior bits on the 2er or looking at a new/CPO car. I took out a 24 month loan with BMW FS to buy my wife's X1 and just paid it off 7 months early. I'd probably go with a 0% 60 month loan and pay it off in 24-36 months. I'm in no hurry, so I'll keep watching how the automotive markets develop.
 
Guys, do the math.
If everything else is equal, separate out the payment method.

If your choices are paying cash vs. 0% loan, put the cash in a money market and take the loan.
It nets to a negative percent loan.
 
You must log in or register to reply here.

Similar threads

T
Modern Vehicle Dashboard
2 3 4
Replies
68
Views
3K
TimeFlies
raaizin
Crazy dealer add on
2 3
Replies
51
Views
3K
eljefino
Elkins45
How far would you drive on a gamble for a used car?
2 3 4
Replies
77
Views
2K
brages
LazyDog
Buying a car services
Replies
18
Views
885
proveitwithdata
dlundblad
Used vehicle with low MPG average on DIM.
Replies
11
Views
407
KrisZ
Back
Top