When (how many days) do you feel you have "High Leverage" for purchasing a vehicle? Thank you.

Jetpilotrick
0

Asked by Jetpilotrick Jan 26, 2013 at 03:58 PM about the 2005 Chevrolet Corvette Convertible

Question type: Shopping & Pricing

1 Answer

Mike Rabkin
405

If for a new vehicle: Dealers have a period of time where they pay very subsizied financing on the vehicle on their lots (known as the "floorplanning" period. This is for 90-100 days. Once this period ends, theyhave to pay a lot more to the manufacturer for financing to keep the vehicle on their lot, so have an incentive to get rid of the oldest vehicle on their lot. Just look at when the vehicle arrived on the window sticker to get an idea when the floorplanning period began for the vehicle you are interested in. If a used vehicle: Dealers keep used vehicles on their lots for an average of 90 days or so until they send it to an auction (because they can't tie up their capital forever, and must have turnover to get new vehicles), so if you can check the carfax report for a vehicle on a dealer's lot, and see when it changed titles, that's an indication of when the dealer received it from the previous owner. So the closer you are to 90 days past that date, the more leverage you have, since they'll get bottom dollar for the vehicle at the auction, and have to pay to enter it, clean it up, gas it, pay someoen to drive it there, etc.... (NADA does put out auction numbers each week that dealers subscribe to, so if you can get your hands on that, can get an idea what a dealer will get at auction if they don't sell the car within 90 days of receiving it. Mike Rabkin Fromcartofinish.com

3 out of 3 people think this is helpful.

Your Answer

Add photo

Related Questions

Search Chevrolet Corvette Questions

Chevrolet Corvette Experts

#1 carGrrl
carGrrl
Reputation 950
#2 califcarson
califcarson
Reputation 860
#3 Tom Demyan
Tom Demyan
Reputation 830
View All

Related Models For Sale

Used Ford Mustang"
531 Great Deals out of 35,230 listings starting at $145
Used Porsche 911"
156 Great Deals out of 3,416 listings starting at $12,950
Used Dodge Charger"
314 Great Deals out of 24,140 listings starting at $3,995
Used Dodge Viper"
11 Great Deals out of 325 listings starting at $17,498
Used BMW M3"
70 Great Deals out of 1,169 listings starting at $5,000
Used Nissan 350Z"
73 Great Deals out of 1,470 listings starting at $5,500
Used Chevrolet Silverado 1500"
1,771 Great Deals out of 147,796 listings starting at $2,300
Used Jeep Wrangler"
944 Great Deals out of 53,370 listings starting at $3,400
Used Ford Mustang SVT Cobra"
15 Great Deals out of 210 listings starting at $6,475
Used BMW 3 Series"
1,401 Great Deals out of 35,070 listings starting at $1,000