As you know with the economy going to a halt and everything, car dealers have come out with some interesting ways to sell a car. For example, Hyundai dealerships are offering people that purchase their new cars if they lose their income Hyundai will make your payments for you for up to three months. If that is not good enough you still have the opportunity to take the car back. Saturn dealers are also offering special incentives. Saturn states that if you lose your job during the first or second year of ownership they will make payments up to $500.00 for up to nine months.
I understand that they want to sell cars and make money just like everyone else but did they every stop and think about how this could affect them in the long run. First of all Hyundai may have to take back a lot of peoples cars if they cannot make the payments after the three months they have paid for and then have to turn around and resell it. That seems to me like more effort and money coming out the dealers pockets then the customer. Saturn is being even more generous than Hyundai to some extent. They may not offer the opportunity to bring the car back but they do offer to pay out a total of $4,500.00 in a nine month period for the first or second year of ownership if you lost your job. I think more time and thought should have gone into these plans of action.
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Thats funny you wrote about this because I got a call from the Jeep dealership telling us that they would sell us a car for the employee price. Meaning that we would probably get $5,000 off of a car. Even though it sounds like a great deal I don't think many people will just buy a car because they make that phone call. Many people who purchase a car think about for months or even a year before they make the purchase. Buying a car is a very expensive purchase and people need to make sure they have the money before they buy it. These dealerships are so desperate they aren't thinking about whats really going to help their company in the long run. Maybe a production of less cars will help the dealerships have cars sit on the lots for years at a time in the struggle of our economic crisis.
ReplyDeleteThis may sound like a good deal at first. However, in the current economic depression, people are not only afraid that they may lose their jobs, but also their savings. So, it is hard to believe that many more people would purchase new cars because of the incentives or some other benefits. They are simply not going to the dealerships. This is quite obvious if one looks on a significant number of recent dealer bankruptcies, Chevrolet just to name one. In short, the incentives the dealerships offer now are just are not enough to convince people to buy a new car, especially when the economy is so bad.
ReplyDeleteI have recently received the letter from a few dealerships that they would provide up to $10,000 discount on the car purchase. With all those incentives that dealerships are offering to customers, although I understand they try their best to keep selling cars as well as to make customers not too anxious about buying a car, I think the people who would in the end benefit with those incentives not only from car dealerships but also from various markets will be the people who already have enough money or at least don't have much worries about living in this economic condition -- since poor people or people recently struggling to make their each day, "most of us," wouldn't have extra money in pocket to pay for a new car.
ReplyDeleteWhenever the economic of a country like the U.S. is in turmoil, you should expect deals like these. It is not surprising that dealers are making all these promises to attract buyers. It may or may nor be a good strategy in the long run, but for now that's the least they can do right now. Thousands of dealerships are being closed nationwide because of reduction in sales so that's some of the reasons behind all these deals.
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