NFR Is there a best time of year to purchase a new vehicle?

SpokaneFisherman

Active Member
Feb 29th falls on a saturday and is the end of the fiscal year. supposedly that only happens every 28 years. Should be a good day for a good deal.

All joking aside I've got 20 years in retail automotive. Shoot me a pm with your phone number and we can talk.
 

SERE Nate

Active Member
I will say this, if you want a VSC (Vehicle Service Contract) aka "extended warranty", the original price you are offered will probably be marked up anywhere from$1500-$2k. Selling VSCs is a major part of the pay plan for the finance manager. Not only is profit important, but so is the % of vehicles we sell a VSC on. Can literally make a few $1k difference in my end of month pay plan. Any F&I manager will gladly sell you a VSC for $100 over cost vs not selling one at all.
 

cabezon

Sculpin Enterprises
WFF Supporter
I will say this, if you want a VSC (Vehicle Service Contract) aka "extended warranty", the original price you are offered will probably be marked up anywhere from$1500-$2k. Selling VSCs is a major part of the pay plan for the finance manager. Not only is profit important, but so is the % of vehicles we sell a VSC on. Can literally make a few $1k difference in my end of month pay plan. Any F&I manager will gladly sell you a VSC for $100 over cost vs not selling one at all.
Hi Nate,
How does one determine the fair price of a VSC? Or how does one determine the dealer's cost?
Steve
 

SERE Nate

Active Member
You don't
Hi Nate,
How does one determine the fair price of a VSC? Or how does one determine the dealer's cost?
Steve
You don't. Normally going to depend on the dependability of the vehicle. A Honda 84m/100k might cost $800, a Ram diesel might cost $2800
 

cabezon

Sculpin Enterprises
WFF Supporter
You don't

You don't. Normally going to depend on the dependability of the vehicle. A Honda 84m/100k might cost $800, a Ram diesel might cost $2800
Seems difficult to negotiate when there is no idea of a fair price. One side holds all the cards. I have read (see https://www.consumer.ftc.gov/articles/0054-auto-service-contracts-and-warranties) that some dealers will insist that the lender insists of a Vehicle Services Contract, but you should contact the lender to ensure that this is the case. I probably wouldn't in any case.
Steve
 

SERE Nate

Active Member
Seems difficult to negotiate when there is no idea of a fair price. One side holds all the cards. I have read (see https://www.consumer.ftc.gov/articles/0054-auto-service-contracts-and-warranties) that some dealers will insist that the lender insists of a Vehicle Services Contract, but you should contact the lender to ensure that this is the case. I probably wouldn't in any case.
Steve
It is illegal to say that the lender requires a VSC or GAP to obtain a loan.
 

Rock Creek Fan

Active Member
Several manufacturer's have 'certified' vehicles that have passed an 81 point inspection and are $2k higher than an equivalent vehicle on the lot. IMHO built in VSC at top $$$$. If one looks at what the dealer includes in in the 81 point inspection and their 'normal' inspection, there is not that much difference. Maybe some new tires and wiper blades. It is my understanding a dealer can not sell a vehicle that is unsafe e.g. bald tires, less than xx% of brakes remaining, etc. VSC is a cash cow for dealers and that is why they press it so hard. I do not pay for cash cows. I pay for prime beef that has been aged 28 days...

I have been in negotiations for all the vehicles cosmetic add-ons and VSC. Prices drop with every offer by the dealer. I have seen the prices drop 75% in a 1/2 hours time. I get P.O.'d real quick. I tell them this my last offer: "We agreed upon a price. Throw everything in for that agreed upon price or I am walking out the door with my money in hand, my trade-in is driving away with me in it, and you can keep your f%$#^&%g vehicle." I usually walk and before I get home there is a message on my phone. Then I play hard-ball negotiations. If it works ---> great! If not, another dealer is just down the road.

I went to a Honda dealer to buy a new car for my wife. No prices posted. Asked for a price and they would not provide it unless I filled out a bunch of paperwork with PII to get qualified. There had been no discussions about financing at all. I refused and walked. Went down the street and found the same vehicle. Got a price I wanted, paid cash and left. Drove to the first dealership, pulled up, waved, and the Sales Manager ran out and said 'I did not give them a chance'. I laughed so hard and said "Next time respect your potential customer. Eat your contract for dinner - its free" and left.
 

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