Frequenting dealerships in my area lately in search of the perfect car, I came upon a situation I had never encountered before; it’s a little thing I call the ”No Trade Deal.” 

In years past, if a buyer had a vehicle to trade, dealerships would allow a trade-in value and take the amount of that value off of the price of the newer vehicle. This made it much easier for the buyer to get rid of the older vehicle while at the same time, allowing the buyer to save money since the trade-in value would be taken off the top of the price of the car in negotiation.

The last few weeks, I’ve encountered something very different.  I’m not certain if there’s a name for the new savings, but I call it the No Trade Deal.  In 6 out of the 9 dealerships I’ve visited since May, they all offered me great deals and not because I was a cash buyer, but because I didn’t have a vehicle to trade in.  At first, I was mystified, but by the second dealership, I began to see the light.  Since the majority of dealerships I visited were overstocked with older model cars, trucks and SUV’s and all with crappy gas mileage, the last thing they wanted was more of the same.  That said, most dealerships were jumping for joy when they learned I was looking to buy without looking to unload and as such, they were more than willing to offer deep discounts on any vehicle they had in stock - new or used.

I spoke to a salesman who told me that large trucks, SUV’s  and even mini-vans weren’t moving, as well as mid-sized sedans that cost more to fill up at the pump.  Of course, this makes sense; with fuel prices currently at $4.00 in most areas and climbing as well as the summer months stretching out before us filled with vacations, holidays and road trips, people are looking for economy, fuel efficiency and a better way to get around town and no doubt, the Ford F-150 or the Pontiac Aztek probably isn’t the best way to do it.

The smaller cars, such as the Ford Focus and Ford Fusion, as well as almost any Toyota, Nissan, Volkswagen and Honda are, in one salesman’s words, Flying off the lot as soon as we get them in, and this included both new and older models of the smaller, fuel efficient vehicles. In my quest to find one of the above cars, I tend to agree with the salesman, specially since it’s been next to impossible for me locate even an older model, fuel efficient car in my area – and by older I mean anything between 2002 through 2006.

So, for cash buyers who don’t have a trade-in, now is probably a great time to get in on the No Trade Deals.

Has anyone experience anything similar in their area?

Tags: Advice, General // 2 Comments »