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Maybe too much...... Posted by Mike Lynch [Email]  (#81) [Profile/Gallery]
(more from Mike Lynch) on Fri, 19 Aug 2005 17:51:14
In Reply to: How much $ for an unregistered 2004 9-5 Aero wagon?, anthony94114, Wed, 17 Aug 2005 15:40:23 Members do not see ads below this line. - Help Keep This Site Online - Signup |
Previous years leftovers often don't qualify for as large as an incentive as the current year, well I shouldn't say often, it's pretty SOP with Saab. So in order for a dealer to sell a brand new leftover '04 for example, they have to take a serious loss, which many are reluctant to do. The dealer will just wait and hope they are lucky enough to find a customer who perhaps loves the car for one reason or antoher or who's not so price savvy or who they can steer into the car as in "I'll do that deal, but on the '04."
Many times a leftover will be "punched" or sold to the dealer and the warranty clock started to take advantage of a huge end of the year incentives as after a certain point the incentives go away and the standard "carry over allowance" is only 10% which doesn't come close to the last round of blow out incentives. This leftover that has been punched becomes a new/used car, techinically used by law and the warranty clock has started and eligible for CPO, but sort of new as in not ever having had an owner and maybe almost no mileage. By contrast a demonstrator can have 10,000 miles for example, but be techincally a new car, but a demo has also had the warranty clock started when placed in demo service.
Bargain hunters looking at new, unused, unpunched leftovers can get very frustrated as the dealer will not even consider a fair or even generous offer. This is especially true if the buyer has consulted any of the pricing guides that suggest what a genuine used one should be worth even when figured with near zero miles. Fair or generous offers are snubbed by the dealer because no sales manager wants to sign the deal with that much red ink. Rather to take the heat for an overly aged unit than a loss, even though everyone knows the unit is going down in value the more it sits. Same goes for units that have been punched/sold and the warranty clock started, it may be a fair or generous offer when measured by the price guides for a used car with close to zero miles, but the dealer owns it as a new car, there's been no retail buyer to take the depreciation hit. It's a rock and a hard place. Dealers will just wait until the get lucky than take a reasonable loss.
, Fri, 19 Aug 2005 17:51:14 <-- Viewing This Message
, Wed, 17 Aug 2005 16:46:20
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