Quote:
Originally Posted by gt8613
If a dealer is straight out telling me that its the end of the month and he has not met quotas and he needs to sell.... Is that just another tactic or is he letting go of his leverage by saying there are no other buyers.
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It could be, but it isn't necessarily. The end of the month is often the very best time to buy a car. There are some interesting incentives at play here on the dealer's side.
Many car dealerships have sales goals each month set by the manufacturer. If the dealership sells its quota, the manufacturer will pay a bonus. If the dealership falls short, no bonus. For example, suppose a dealership has a quota of 30 cars and a bonus of $60,000. That means that if they're at 29 on the last day of the month, they can practically give the last car away and make money. That makes them very motivated sellers and very likely to make a better deal.
Most people don't know about these incentive programs, so my gut tells me your guy is probably not bullshitting you. He probably really is willing to make you a deal on the car, because he'll make the money back on the bonus. But if you wait until after the first of the month, there's no longer any incentive for him to take a beating on the price of the car.
The best way to take advantage of this is to shop earlier in the month and get them to throw out a quote, then come back in on the last day of the month to see if they're willing to deal. That way you know what their normal bottom line is to compare the end of month offer. What you have to decide in your situation is whether this is really a good deal and whether you can take it (or risk that it evaporates Wednesday).
Usually when a salesman gives you a take it or leave it offer, he's just trying to pressure you. In this case it's very likely the salesman is the one under pressure. So go with your gut.