January 21, 2006

Hello Tony

I just found your web site, and it is Spectacular!

I have a question. It might be answered on the web site, but I could not find it after looking for a few minutes. Excuse me if my question is already answered.

I am in the process of buying a Nissan Murano. It is a 2005 model that was used briefly as a demonstrator by the dealer and has 2,000 miles on it.

My question is, "Do the dealers get any money from the factory as an extra dealer credit or rebate on demonstrator cars?"

I think they used to get 5% back years ago, but I don't know if this is still the case. I know about the 2-3% Holdback, and I can see it is well covered on your web site.

Basically, after a little negotiation, the dealer offered to sell me the car at Invoice (cost), and there is a $1,000 customer rebate in addition.

The question is, can I get the dealer to go below invoice on a 2005 model? The car has not yet been titled, so I will get an "A" title and qualify for a new car rate on the loan.

Any advice is appreciated!

Thanks for your help!

Alan M.

Answer:

Hi Alan,

Thank you for your kind words about my website. They are very much appreciated.

I don't know for sure if Nissan gives it's dealers any additional incentives for selling demos. I know the American manufacturers cut it out for the most part a few years ago.

However, they might have given the dealer an additional incentive to move the 2005 models, so there is a good chance there is still some money left on the table. How much I don't know!

The only way to know for sure is to bluff them, by telling the dealer you found another '05 Murano at another dealer for less. Tell them you would rather deal with them, but they have to do a lot better on price. Remind them that you're doing them a big favor by buying a left over demo from them. If they want to sell it to you they're going to have to do much better on the price.

It may or may not work, but if there is any room left in their pricing they will probably deal. Telling them all the stuff above will make them very nervous, and they will think they're losing you. I guarantee you they do not want to blow any possible chance they have of selling a left over demo!

Play hardball with them. You have nothing to lose, and the longer you hold out the better the chances are they will come down on the price. Of course, if you hold out too long they might find another buyer for the car, but I doubt very many customers are looking at an '05 demo at this stage.

Remember too, even though the car is "new" it is already a year old. Down the road when you sell it or trade it the amount you get will be determined by the year of the vehicle. So in a sense you are really starting out in the hole.

If you buy it at their numbers you will be paying close to what you probably could have bought it for 6 or 8 months ago. So what kind of deal are they really giving you?

Bottom line is they need to do better on the price. If there is another Nissan dealer within range give them a call and see what they have. You never know!

All my very best...

Tony Iorio