Some times people ask us why we don’t have any big sale events. It’s quite simple, really: those “sales” other dealers do are BS. Here at Ride Time, we are not above flashy stunts or silly things to get your attention but we’re honest people trying to make an honest living.
No matter what day you walk onto our Winnipeg lot, you’re going to get the best deal we can give you. The truth about those “sales” is that they’re just a lot of smoke and mirrors.
Friends, the answer is simple: FOMO, that is fear of missing out. Special event pricing is just a gimmick to get you in the door when they want you there.
You’re probably not getting a better deal for going out of your way to fit them into your schedule, either. Most of the time, prices don’t change for the events. We’ve even heard of dealers raising prices leading up to a special sales event.
What About 0% Interest Promotions, Too Good to Be True?
Yup. They’re too good to be true. Chances are, the offer advertised is rates “as low as 0%” to get you in the door. Once you’ve picked out your car, you’ll get your real interest rate. (Spoiler alert: That interest rate is probably going to be higher.) While many manufactures are offering the carrot of 0%, the catch is it will be on a shortened term. We have seen it only offered for 36 months and available only on certain vehicles. Sure we would love that rate too, but who can afford the payment?
Sometimes you can actually get a 0% interest rate at a reasonable term from the manufacturer, which we have seen up to 84 months. (Sounding better, right?) Unfortunately, not only does that brand new car depreciate by about 30% the moment you drive it off the lot, but in order to get the 0% you are going to have to forgo the manufactures rebates. That’s not such a great deal after all.
In the used car industry, however, there’s really no such thing as a 0% interest loan.
A lender is out to make one thing: money. They do not make money off of a 0% loan, so they’re not going to give you one. Somebody has to pay that interest. In order to offer you that rate, the used car dealer will have to buy down the rate–that is, they will have to pay the interest the lender needs to earn. There are dealers who do that (including us), just pay attention to any price increases or mystery fees.
Don’t let fear of missing out lure you in to a deal that’s not a good deal. If you’re shopping for a used car in Winnipeg, go to a dealer who will give you the same great deal all year long.
At Ride Time, we work with many of the major lenders to ensure virtually anybody can get approved for an auto loan. We’ll get you the best rate possible even if you have bad credit.
PS: You really will get a lower monthly payment if you buy in December. That’s not a deal and it’s not FOMO. It’s just weird banker math.