Comments on: On the Road - Detroit, MI http://www.dalepollak.com/2008/05/01/on-the-road-detroit-mi/ Fri, 21 Nov 2008 18:03:32 +0000 http://wordpress.org/?v=2.5 By: Uncle Phil http://www.dalepollak.com/2008/05/01/on-the-road-detroit-mi/#comment-36 Uncle Phil Sun, 04 May 2008 18:41:19 +0000 http://www.dalepollak.com/?p=52#comment-36 I always wondered about the dynamics of these employee buy plans. If the employees are buying heavily discounted new units instead of used cars, what are they doing with the last one they bought? If the market for used is depressed in Detroit, that makes their trade-ins less valuable. Are casual used sales higher in markets with higher proportions of OEM employees? Are these folks selling their pre-owned units on eBay? Anyone know? I always wondered about the dynamics of these employee buy plans. If the employees are buying heavily discounted new units instead of used cars, what are they doing with the last one they bought? If the market for used is depressed in Detroit, that makes their trade-ins less valuable. Are casual used sales higher in markets with higher proportions of OEM employees? Are these folks selling their pre-owned units on eBay? Anyone know?

]]> By: emiltsch http://www.dalepollak.com/2008/05/01/on-the-road-detroit-mi/#comment-20 emiltsch Fri, 02 May 2008 01:33:42 +0000 http://www.dalepollak.com/?p=52#comment-20 Dale, That's great insight about the Detroit market...interesting dynamics with regards to both the marketing struggles and opportunities for those dealers. Dale,

That’s great insight about the Detroit market…interesting dynamics with regards to both the marketing struggles and opportunities for those dealers.

]]> By: ruggles http://www.dalepollak.com/2008/05/01/on-the-road-detroit-mi/#comment-18 ruggles Thu, 01 May 2008 21:27:56 +0000 http://www.dalepollak.com/?p=52#comment-18 I have discovered the same anomaly in areas where there are many vendors to the auto industry. A 24 month SmartLease on a GTO or Yukon, with all the available X,Y,Z, plan money and rebates can add up to a $250./ mo lease. That same payment only finances about $13000. on a 60 month finance contract. As we are engaged in pre-owned leasing we can state without doubt that the only way pre-owned leasing works is if the payment is compellingly better than a subvented lease on new. Currently one can lease a pre-owned 2007 M35 Infiniti for about $355./mo for 39 mo. with no money down. I have reason to believe that even a subvented lease on a new 2008 would be at least $550./mo with no money down. Some people would be attracted to the $200./mo savings. After all, everyone drives a used car! I have discovered the same anomaly in areas where there are many vendors to the auto industry. A 24 month SmartLease on a GTO or Yukon, with all the available X,Y,Z, plan money and rebates can add up to a $250./ mo lease. That same payment only finances about $13000. on a 60 month finance contract.

As we are engaged in pre-owned leasing we can state without doubt that the only way pre-owned leasing works is if the payment is compellingly better than a subvented lease on new.

Currently one can lease a pre-owned 2007 M35 Infiniti for about $355./mo for 39 mo. with no money down. I have reason to believe that even a subvented lease on a new 2008 would be at least $550./mo with no money down. Some people would be attracted to the $200./mo savings. After all, everyone drives a used car!

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