Nov 19, 2013
It's Time to Buy!Guest Post written by Karen Millwood, Account Executive for NextGear Capital, Inc., Greenville, SC market
Now is the time to buy! According to “Auto Remarketing” October edition, vehicle prices in the market are on the decline, and there was an inventory infusion into the market last month based upon the best October in new car sales since 2007 (increasing the trades). Plus, tax season is just around the corner.
I know what you are thinking — tax time is still months away! That’s where a floor plan partner could come into play, giving you the EXTRA BUYING POWER and TIME you need! However, I understand there are some hesitations out there for some of you on buying right now. Here are some things to think about.
As you very well know, vehicles across the board are on the decline in terms of price at the moment, but those big profit makers (i.e. trucks), the 4x4 trucks especially, are holding strong. In a recent article, “Auto Remarketing” said, “One of the most frequently cited trends was how trucks — especially four-wheel drive models — are performing better than the overall market.”
The crossovers and the-ever popular family sedans are down in price as well, according to Rickey Beggs of Black Book in this week’s edition of “Auto Remarketing” (November 12, 2013, edition).
The right floor plan partner can give you the edge over your competition in the lane or online in getting that piece front and center on your lot, giving you more freedom to bid with confidence. Also, in most cases, with promotions offered by your inventory finance partner during this prime tax season-buying time, you could choose to keep it on your floor plan for UP TO 120-180 days in some cases, taking you straight into the typical tax season of January, February and March.
Some people may be a little apprehensive about tax season and worry about ‘if we’re going to have one this year’ — well, people were afraid the government shutdown was going to ‘shut down’ October used car sales as well. As it turns out, used car sales were up by 3.6 percent in October! That’s according to Art Spinella, president of CNW Research, in an article from “Auto Remarketing.”
Question is, what if this tax season IS spot on, and you don’t have the inventory to fulfill your consumers’ needs? Sometimes our fears can get the best of us, but don’t let it get your profit too. We have to go with what we know — there IS a tax season EVERY year in one form or another. It’s coming, and you don’t want to miss out on these low car prices while they are trending.
Strike while the iron is hot! Car prices are on the decline. Partner up with the right inventory finance partner, and let us take on that heavy lifting and get you to tax time. If you don’t yet have an inventory finance partner, check into applying.
Research your buying options before you go to a sale, and know what units you’re bidding on, what lanes they are running in, etc. Have an action plan in place so you don’t miss your niche units. Buy smart! Then come tax season, you’ll be in the green!
About NextGear Capital:
NextGear Capital is the most comprehensive and innovative provider of lending products for vehicle dealers and auctions. With pioneering technology and a total commitment to customer service, NextGear Capital empowers dealers to floor plan vehicles from anywhere, at any time. NextGear Capital lines of credit can be used for a variety of purchases – Retail, Wholesale, Salvage and Specialty. The company provides inventory financing to qualified NextGear Capital dealers purchasing inventory at Carolina Auto Auction.
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