This brutal winter has actually created a buying opportunity at the wholesale auctions. Multiple storms have dealers in the Northeast pinched for room for new inventory as well as deadening retail sales energy. These dealers are not showing up at the auctions in search of new inventory when they are having trouble selling and delivering what they already have in stock. This has not only had a stabilizing influence on prices at a time when prices traditionally rise but we are finding that there has actually been a lowering of prices. The lease companies and manufacturers still need to move inventory at auction and the buyers have retreated for the time being. We have been able to take advantage of this market aberration for some fortunate clients so if you are getting ready for something different you might want to give us a shout soon.
However, we fully expect rising spring prices to return as the snow melts and folks recharge their buying desires. Hopefully we will have a few more weeks of these abnormally lower prices.
Ganley Auto Advisors continues to evolve. We will be opening another office in Boulder Colorado later this spring that will be led by my son Will Ganley who has spent the last five years developing his skills as a technician at a Subaru dealership. Will has been hanging around auctions since he was a kid and has worked with me throughout the years. He will bring his expertise and calm energy to help our clients in the west get the right vehicle at the best value. We are very excited about this expanded effort and will keep you informed of our official opening.
NADA reports that for the first time since the recession there will be a rising tide of off lease inventory this year – “vehicle supply to grow by 8%”. This is significant growth and will help to keep wholesale prices in check. The increase in personal leases (up 18% per year since 2011 according to NADA) will continue to drive the rise in inventory. Even though personal leasing is usually a bad fiscal decision by the consumer it does lead to better buys for folks who wait it out and buy the off lease units.
We continue to refine our process to partner with you in the most effective ways by paying attention to the DETAILS of what you want, what the markets will yield, and of the vetting process of throughly checking out each vehicle so you know what you are getting. Without paying attention to the details you have nothing. We start with the details but subscribe to complete COMMUNICATION with you so you know what we know. We finish our process with TRANSPARENCY so everything is on the table about condition and costs because we want you to have access to everything. In short, we believe that this gives you a unique opportunity to purchase your vehicles without the fears, doubts and insecurities that you would encounter at a traditional dealership where they are trying to sell you what they have instead of getting you what you want in the correct quality of condition.
Beware of new vehicle lease programs. We want to show you where the buying opportunities are on both new and used vehicles and how traditional dealers will try to entice you into a lease which is really a three year rental that reduces your flexibility and leaves you with nothing at the end of the lease except some possible exit charges for excess mileage and damage. The vehicles being built today will easily last for 12 or 15 years with proper care. The manufacturer wants to build you 4 or 5 vehicles over that period of time instead of just one so they tailor their marketing programs to lease. Both the manufacturer and the dealer want to make 4 or 5 profits off of you instead of one.The dealers also want you to lease so they have a steady stream of nice trades in the future as well as getting you back into another lease where you continue to be harnessed to the monthly payment drug. When you add up all the charges and divide by the number of miles you drove you will be surprised to see how much more you are really paying. The only vehicle you might want to lease is one that you would not want to own because of future repair costs (i.e. Range Rover). If you are intrigued by leasing give us a call so we can help you analyze the deal you think you are getting.
Where does a dealer like to make their profit? This might seem like a simple dumbed down question but the answers are good to review. The first goal for dealerships is to pay every bit of overhead from their service and parts operations. That is why you see so much price gouging and up-selling in the service department. If all expenses are paid by the service and parts departments for the fancy building, advertising, all personnel, insurance, etc. then every vehicle that is sold becomes pure profit that the dealer puts in his pocket.
Beware of the dealership finance office’s efforts to enhance their plunder with unneeded and profit fat products. Once you commit to that “best ” price you get shepherded into “The Box” where the crafty business manager blasts you with product offerings that are overwhelming. Do you really need key replacement insurance? If this car is so great then why do you need the extra extended service contract? Or the overpriced prepaid maintenance plan? Or the tire and wheel damage package? Or the environmentally friendly paint and interior protection? Serious wallet-ectomies happen in “The Box”. We will help you avoid these traps.
A client recently told us that she overheard a salesman at neighboring desk tell a customer on the phone that the car they were interested in belonged to the brother of a mechanic and that it was in perfect mechanical condition all while she was waiting at a salesman’s desk after test driving a used car which was described as “being owned by a mechanic’s brother”. Same line used by two different salespeople about two different cars. Needless to say our client got up and left.
We are not fooling around here – this is all about you. Your continued support is the reason for our success. Thanks so much for all your loyalty and your referrals.
We’ll start with itemizing the ways we can help you to have the most cost-effective and enjoyable buying experience.