Languishing on the Lot? Dynamic Deals!
Here's a tidbit about the inner workings of car dealerships that can help save you money. Car dealers don’t buy their new cars outright from the manufacturers, they finance them. For the duration that each car sits on their lot, they pay interest on the financing. When the car is sold, they pay off the loan.
So, putting on our MBA hats and crunching the numbers, it makes sense for a dealer to sell a particular car as quickly as they can; the longer a car sits on the lot, the more interest they pay. The more interest they pay, the lower their profit. Pretty straightforward, right?
So it stands to reason that vehicles that have been sitting around on the lot are in less demand and have a better chance of being discounted. Vehicles that are moving briskly are obviously in demand, and less likely to be discounted.
TrueCar.com publishes a monthly report on the vehicles with the longest and shortest days in inventory. Using this information can steer you towards better deals. Here are some highlights:
Bigger Is Better
Larger vehicles are tending to spend more time on the lot than smaller cars. For instance: Large SUVs are averaging 75 days in inventory, and large cars are averaging 84 days. The other end of the spectrum has subcompact and small cars averaging only 37 days. Expect better deals on bigger vehicles.
Despite what you just read, the models that are languishing the longest are both small vehicles. The soon to vanish Dodge Caliber is averaging 166 days on the lot. Gosh, they should be fairly giving them away by now. The current Mitsubishi Outlander has grown a bit stale, hence the leisurely 177 days in stock. Get ‘em while they're not hot.
Have You Driven a Ford Lately? Apparently Not.
Of the July top 10 in longest amount of days in inventory, five are Ford Motor Company products. The Ford Edge (124 days), Mustang (139 days), Taurus (140 days), Flex, (146 days), and Lincoln MKX (149 days) are all clogging the lots.
If this information has you ready to buy, start your auto buying preparation at AutoBuying101.com.