Spies UNCOVER The Answer OF WHY Car Deals Are NO Better During The Lockdown Than Before Other Than Zero Percent. Are You Buying It?

The biggest mystery to me related to cars during this pandemic is one would have thought with sales going into the toilet, we would have seen some UNREAL deals. Like NONE we've ever seen before.

But that is just not happening.

From our tracking the only real incentive that has been added are 0% financing deal and extended/delayed payment terms.

You would think they would want to stem the sales numbers from tanking. But you would be wrong. And we think we've figure out why.

After seeking out our moles hidden deep in many USA and Canadian auto dealerships, the answer seems quite simple. The economy was amazing before this all started. And dealers believe there is no reason for fire sales BECAUSE of TWO reasons:

1. They weren't overloaded with product

2. They fear a strong rebound and if they depleted inventory at fire sale prices they don't have confidence replacement inventory will be finished and shipped. In other words, customers who want products but no inventory to sell.

So are you buying their explanation and did you expect some insane deals by this point?

jeffgall - 4/30/2020 8:35:06 PM

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My coworker just got a screaming deal on a Grand Cherokee Overland, they begged him to buy it over the phone and dropped it off at his house.

MDarringer - 4/30/2020 8:41:30 PM

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And given how FCA overproduces and pushes out to dealers, Jeeps are stunning deals here and there.

MDarringer - 4/30/2020 8:40:22 PM

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#1 yes, but we did get really nice on some slow sellers to reduce stock of the paper weights so that we will have space free for when product resumes that we can devote to cars that are actually good to us.

#2 yes

If someone wanted a Fusion, Malibu, a Cadillac, Continental, Camaro...we were all ears because that's dead weight.

There is money behind the scenes in addition to 0%, but we played the card of holding tight on stock so that the money that comes to us as a contingent went toward profit.

Negotiations have been unbelievably fast with walk-ins because people are making quick decisions for fear of being exposed too long. Bless their hearts.

MrEE - 4/30/2020 9:34:03 PM

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Noticed Toyota cashback is going up. It would seem with lower sales, discounting would be more difficult than when volume is high.

MDarringer - 4/30/2020 10:01:15 PM

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That isn't necessarily a complete correlation, so yes and no.

it is and it isn't.

Let's say you have $3K behind the scenes on every Family Truckster you sell and to make the deal on one you give the $3K but you sell several others with customers none the wiser, sure. You deal on some and make it up on others.

But if the $3K is there in a situation like this and you want the car gone, a deal can still happen.

FCA is trying to reduce stock on all Maseratis, Alfa-Romeos, left-over Fiats, 300, Journey, and all Jeeps because they had a scary excess to begin with and PSA isn't happy.

Ford and GM have been "supportive" of dealers as have Hyundai-Kia.

PUGPROUD - 5/1/2020 6:35:50 AM

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Translation..."I'm hurting, let me try to stick it to buyers when the economy opens up, but if that doesn't work throw lots of money on the hood just to keep the lights on." Its a process.