New Cars Under

Lately we have been noticing an interesting phenomenon. Basically when a new car dealership promotes a cash allowance incentive of a certain amount of money say $3,500 or $4,500 for example for those who have a qualifying trade-in means that this cash amount comes right off of the top of the price of the new vehicle.

These days there is now what we like to call the convenience factor involved here. What we found during the Cash for Clunkers program while it was in effect was that many of the trade-ins where actually worth more than the $4,500 which was to be paid towards the cost of the new car in behave of the customer. We started to witness a unique situation which we had only seen on rare occasions over the years. The customer was trading in a used vehicle for a set amount of cash guaranteed towards the purchase price of a new vehicle yet the trade-in had a book price of more than what the set allowance was.

We termed this the convenience factor based on the feedback and information gathered from the customers. In essence even though a used car may actually book for a certain value the reality is that in order for the vehicle owner to actually get that amount of cash for the vehicle they have to sell the vehicle on their own.

It is generally quite difficult to achieve anywhere near book value when selling a car as an individual through the local papers and classified adds. And without a set cash allowance for a trade in they may not get anywhere near what they want for the used car from a dealer in many instances either when they are looking to trade-in the vehicle for a new car.

This is the convenience factor. The customer has a guaranteed trade-in dollar amount for their vehicle. There is no ongoing hassle of trying to sell the used car on their own by running advertisements etc. No advertising expenses wasted and no time wasted on all the tire kickers looking to get a really special deal from the owner selling the vehicle on their own.

The old Cash for Clunkers program actually sparked an idea in the approach to just how new car dealers are going to entice customers into taking a closer look at purchasing a new vehicle. The common approach now is a simple one which does actually borrow from some very old ideas and sales tactics all of which greatly benefit the customer through convenience if nothing else.

It is a fairly frequent occurrence that a customer will actually spend a good deal of time weighing the benefits of buying a new car versus a used one. Of course a certain percentage of them will also be considering a car lease term options as well.

There are certainly very distinct benefits which each approach to car ownership brings to the table. This may often be a tough decision but it is good to have options. Everyone is in a unique position in their own lives so what may be great for one customer may not be so good for another. We always try to keep this in mind and simply present the most pertinent and helpful information to the customer as we can.

In most situations one of the number one points of interest from the get go is the price of the new car and how it will fit into the customer’s budget. Most people really love the idea of buying a new car but the price is quite often prohibitive so the next logical step is to look at car lease term options.

We have found that not nearly as many people are actually interested in leasing a new car mainly because they do not like the idea of not actually owning the vehicle after making payments on it for a few years. This is certainly understandable. On the other hand there are some customers who absolutely must go with a lease because they know that they will only need the vehicle for a short period of time.

Typically new cars are going to be more expensive than used ones except in situations where the vehicle is a very expensive model which retains much of its value over time. However with the vast array of ever changing new car incentive programs such as cash back and cash allowances the gap is certainly closing in many new cars under 20000 dollars for example. The other very powerful car incentive which is frequently offered is the special financing for those who qualify which is yet another convenience for the customer.