This Week in Car Buying: Black Friday buying strategies; 0-percent financing makes brief comeback; Your next new car may be used; 2019 Nissan Kicks and Rogue Sport priced
So rather than duking it out at your local big box store over that 80-inch flat screen television, you’ve decided to go out and kick tires and see what kind of deal you can get on a new car. Friday will be a good day to test the waters, but you may want to think of laying groundwork for a sale closer to the end of the year.
This year’s Black Friday sales are enticing, and a recent build up in inventory is working in the buyers’ favor. But also remember that Thanksgiving is a bit early this year, so there’s about a week left in the month before the dealers close their books on November. As a result, there will be less pressure on their part to make their numbers this weekend. Still, it won’t hurt to shop around, see what sorts of incentives they dangle in front of you and then promise to come back next week. Or better yet, closer to the end of the year.
Once Black Friday is history, the Holiday Sales Events will pick up the slack with a wider array of manufacturers getting in on the programs. And as they close out the calendar year and if inventories continue to swell, you might find a bit more leverage the week after Christmas right up to New Year’s Eve. Patience is a virtue, especially when it comes to shopping for a new car and it may pay big rewards if you do your homework.
0-percent financing makes brief comeback
It was just a few weeks ago when we wrote of 0-percent finance deals becoming harder and harder to find as the Federal Reserve continues to raise interest rates. Now Bloomberg is reporting that 0-percent financing is back, albeit briefly, thanks to Black Friday sales. According to the news service, General Motors, Ford and Nissan are offering the no-interest rate loans for as long as 72 months on products including the Chevy Silverado, Ford F-150 and Nissan Rogue.
The move is prompted by a desire to clear out 2018 models before the end of the year and the low-interest loans have been a popular way to attract the attention of buyers. GM spokesman Jim Cain told Bloomberg that “the reports of the death of zero percent were exaggerated. We said all along it was an important part of our tool kit. Zero percent has proven to be a good motivator.” The 0-percent offer also extends to Chevy Equinox, Tahoe, and Suburban, and GMC Yukon and Yukon XL models.
Your next new car may be used
Increasing prices on new vehicles and the attractiveness of Certified Pre-Owned vehicles may be changing the way most average buyers shop. Rather than buy an all-new vehicle, bargain hunters may be looking at low mileage, late model units that are most likely lease turn-ins. It’s likely that new models would be leased to higher income individuals who drive them from one to three years before turning them in. Consumers looking to purchase and keep vehicles for more than three years would obtain them on the second hand market in this scenario.
As a result, dealers are looking to hone their skills in used car marketing, where the opportunities are greater for higher margins and building relationships with buyers who could become long-term customers.
According to a report in Automotive News on a recent used car conference, Don Luke, owner of Bill Luke Chrysler-Jeep-Dodge-Ram in Phoenix said that “People who are going to get a car for their kids, you know, $30,000 is nuts. They would rather buy a 1- or 2-year-old car for around $20,000.”
Jonathan Banks, vice president of vehicle valuations at J.D. Power believes that “We are going to see the revolution in the way people buy cars at retail first in the used market.”
Compounding this trend from focusing more on used than new vehicles are the increasing popularity of subscription models, car sharing and ride hailing apps, that will also change the way consumers access mobility. Becca Polak, chief legal officer at KAR Auction Services told the conference “It can’t just be about the new cars anymore.”
Nissan prices Kicks, Rogue Sport
Pricing for the 2019 Nissan Kicks and 2019 Rogue Sport have been announced by the Japanese automaker. Introduced earlier this year as a 2018 model, the Kicks has become one of Nissan’s fastest selling vehicles. For 2019, there’s a modest $250 increase in the base sticker bringing the entry level Kicks S model to $18,540 plus $995 for delivery. The 2019 Kicks SV is now $20,250, a $260 increase, while the Kicks SR retails for $20,870, a $280 bump.
The front-drive Kicks is powered by a 112-horsepower 1.6-liter engine mated to a continuously variable transmission. The 2019 Nissan Kicks is rated by EPA at 33 mpg combined.
The next crossover up the line, the 2019 Nissan Rogue Sport comes in at $22,240 for the front-drive S model, a minor increase of just $130. The front-drive SV is $24,040, while the range topping SL is $27,960. All-wheel drive models are $1,350 more and pricing excludes in $995 destination charges. The Rogue Sport is powered by a 241-horsepower 2.0-liter 4-cylinder.
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