| Car Deals Start At The End Of The LineMany people | | | | basic credo is, "Sell it now and worry about tomorrow |
| like to buy at the end of the model year, during those | | | | later."Import makes don't use across-the-line carryover |
| year-end cleanout sales. The new models are about | | | | allowances, but many of them place hefty |
| to arrive, and they've got to make space for them. | | | | factory-to-dealer cash incentives on last year's models |
| Often times you can more easily search for a car deal | | | | of selected vehicles.One Key Closeout Issue: Slim |
| at this time.One reason prices are friendlier then is that | | | | PickingsSometimes year-end pickings can be quite slim, |
| some manufacturers provide extra money to their | | | | even in a down market. If sales have been depressed |
| dealers to help them sell those year-end leftovers. | | | | for months, both manufacturers and their dealers may |
| (They won't get heavy orders for new models if | | | | write off a model year when it's only half over. Dealers |
| dealers are loaded with last year's cars.) This extra | | | | get very selective with their orders as the current |
| money is called a "carryover allowance," and it's a | | | | year's production winds down, and the factories |
| practice employed most often by Detroit.General | | | | structure their build out plans to allow dealers to |
| Motors and Ford regularly provide a carryover | | | | maintain lean inventories of only the fastest-moving |
| allowance of 5 percent of the sticker price (that's 5 | | | | models. They're both hoping to end the old-model year |
| percent of MSRP, not 5 percent of dealer invoice), | | | | without a glut of leftovers, so they can focus all their |
| which they credit to dealers for every previous year's | | | | resources on the new-model launch in the fall.This |
| vehicle sold after the new model of the same vehicle | | | | occasional attack of sanity among car makers is not |
| arrives in the showroom. On a car or truck with a | | | | necessarily good news for shoppers looking for |
| $20,000 sticker price, that 5 percent represents an | | | | end-of-year bargains. But more often than not, if your |
| additional $1,000 for you to bargain for.Chrysler has | | | | heart's set on a model-year leftover, you'll have many |
| traditionally shunned carryover allowances. Several | | | | to choose from-assuming there are two or three |
| years ago, it offered its dealers the choice of a 5 | | | | finalists you'd be happy to drive home.David Foley |
| percent carryover allowance or participation in the | | | | specializes in informing the general public on the inside |
| July-September consumer and dealer incentive | | | | information relating to car dealerships and how to |
| programs. As you might expect, the carryover | | | | search for great car deals. |
| allowance had few takers among dealers, whose | | | | |