As some of you may know I stated that we'd have MSRP by February. Well, I wasn't completely right. But here we are.
I've been talking with other dealers, and viewing sales that have been taking place.
The ADM's are creeping closer to the $5k dollar mark.
Dealer's asking $10k-15k+ are sitting on these cars unless someone that just has too much money anyways is buying them.
I know of 4 cars that have been sold this 1st week in February for MSRP. Why you ask? Just like I said before, these are the SLOWEST months for car sales. There will be a boom in April, and then its steady until the holiday season again.
So, because of slow sales, the dealers have less/slow cashflow. With less/slow cashflow, or as we call it "cash on hand" it makes it more difficult to pay off trades etc etc. When you can't pay off trades, you become out-of-trust, this freezes your floorplan etc.
These dealers are willing to get these cars off of thier floorplan (less interest to pay) and sell them at sticker, still making a pretty nice profit if you ask me.
This will free up more space to floorplan more vehicles and more cash in the bank to pay off other vehicles.
So its cold, its winter, and sales are slow. Start hitting the dealerships, MSRP is upon us.
If you don't know what floorplan is, it is basically a line of credit that the dealer has to purchase vehicles. Its usually with the Manufacturer (GMAC, FMCC) They have to pay interest monthly. They have 24hours to pay off a vehicle after it is sold or it is considered an "out-of-trust dealer."
I've been talking with other dealers, and viewing sales that have been taking place.
The ADM's are creeping closer to the $5k dollar mark.
Dealer's asking $10k-15k+ are sitting on these cars unless someone that just has too much money anyways is buying them.
I know of 4 cars that have been sold this 1st week in February for MSRP. Why you ask? Just like I said before, these are the SLOWEST months for car sales. There will be a boom in April, and then its steady until the holiday season again.
So, because of slow sales, the dealers have less/slow cashflow. With less/slow cashflow, or as we call it "cash on hand" it makes it more difficult to pay off trades etc etc. When you can't pay off trades, you become out-of-trust, this freezes your floorplan etc.
These dealers are willing to get these cars off of thier floorplan (less interest to pay) and sell them at sticker, still making a pretty nice profit if you ask me.
This will free up more space to floorplan more vehicles and more cash in the bank to pay off other vehicles.
So its cold, its winter, and sales are slow. Start hitting the dealerships, MSRP is upon us.
If you don't know what floorplan is, it is basically a line of credit that the dealer has to purchase vehicles. Its usually with the Manufacturer (GMAC, FMCC) They have to pay interest monthly. They have 24hours to pay off a vehicle after it is sold or it is considered an "out-of-trust dealer."
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