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Punched...... Posted by Mike Lynch [Email] ![]() ![]() In Reply to: 2004 ARC Prices?, Michael ![]() |
Some dealers took advantage of the final $7,000 incentive offer on 2004's and reported them sold, sold them to the used car department, whatever. Some of these cars have never had owners, but are still techinically used with the warranty expiring. If a dealer didn't do that then the end of year allowance wasn't $7k, but only 10% of the MSRP, or about $3k less.
Current incentives are only a couple of thousand less on current '05s and $2-3k doesn't cover a years depreciation so once the 2005's hit, it's really tough for a dealer to offer a truly competitive price on last years model. So the 2004's tend to sit 'cause to sell one at a "fair" price requires the salesmanager to sign his name to a major loser. Instead dealers just hope for someone who doesn't ask how much a new one is.
So have your brother-in-law get a handle on a good, competitive 2005 price, before deciding on a 2004. It might be the same or less for a 2005 unless the used car manager has unbelievable job security.
And remember the best overall deal on a 9-5 is the lease, for which there is none availible for last years car. You lose $1k in incentives, but gain a rate as low as 0.02%, that's not a misprint 2/100ths of a percent.
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