Car Tip For The Day
Incentives
The manufacturer likes to bait people with their great programs they develop to get customers onto our lot. Thank god they do. They do a great job of marketing these incentives and really showing value to the customer and why now is the time to buy a vehicle. Honestly it’s always time to buy a vehicle. The U.S is planning on selling 14million cars and trucks this year. There is a big pie out there and they want as much as they can get.
Now here is my take on these incentives. They are great. Plain and simple…wait for it…wait for it…. Ya you knew it was coming, BUT sometimes they aren’t used most advantageously by the customer. Example: You have an incentive of 0% for 72 months on a vehicle. Sounds great!! No interest on your money for a whole 72 months. Here is the buzzkill. Lets say your credit lets you qualify for this. In my experience people with good enough credit to qualify for this type of incentive usually payoff a vehicle early. Well by doing this usually to get that 0% you have to give up some kind a rebate. On 0% your rebates can get as high as 5k. That’s up front money from the manufacturer gives the customer to cover up inequity, get a better payment, etc. Like I said though you’re probably going to trade or payoff before the 72months is up. If you went for the 0% and paid it off early you’re not taking full advantage of the program. Your best bet is to take a low interest rate and take the rebate. If you know for sure that you’re going to take 72 months to pay off that vehicle then take the 0%. Honestly though your going to get a great rate anyways because of your good credit. Take the cheaper car. Hope this helped a lot of people. This is one of the things I like to do for our customer. Educate them and it will build a trust factor for years to come.
“It’s who scored the most runs who wins the game, not the amount of homeruns over the fence.”
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