Magic Time for LS 430 buyers...? (all departments in a dealership are measured monthly and all department managers have various quota incentives)


(I shall not be responding to any replies to this post and shall not make further posts to this particular thread.) Good luck buyers!

 

The incentives from manufacturers to dealers discussed in the video only applies to new cars, not used cars. Lexus doesn't care how many used LS430 are sold and offer the dealer nothing for selling them. Dealers may have their own independent goals for used car sales, but most are going to take a loss or make nothing on a used car just because it is near the end of the month like they may consider for a new car.

 

Dealers make more money off used cars. Profit margins are much higher. Service is also a huge profit generator for dealership. New car profit margins are slim and dealers are driven by manufacturer incentives and the service revenue they will provide in the future. They will give it up like a dirty girl at the end of the month to meet a new car sales quota.

 

Not necessarily true.

i just spoke to my bud that works at a Caddy dealership. He said that they don’t discount at the end of the month for used cars. They discount based on size of inventory and how long each car has been sitting on the lot. If they sell at lot of new cars and get a lot of trade ins, they are more willing to work on the prices of the used cars to prevent having too many used cars and not enough space. He also said they will discount if a car has been sitting on the lot for a while and that they don’t like to carry interest for more than 60 days.

So, no, it’s not “magic time” to buy a 430 unless you find one that has been sitting on the lot for a couple of months or a dealer that is flooded with trade ins.

 

Dealers in my area seem to have a shortage of used cars, the lots are less full than they used to be. Same near you guys? They are all posting signs to "buy your used cars" no purchase needed?