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I have a dealer with several new 2018's on the lot. I know the 2019's have the power dollar incentives, which if the 2018's are not heavily discounted with rebates probably makes a lot more sense to buy a 2019. I have a hard time believing Dodge would not significantly discount remaining 18's though.

Anyone know?
 

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My understanding of how it works is that the manufacturer will only support the dealers with rebates for a certain length of time after the model year ends. Beyond that time period, the manufacturer looks at still unsold cars as the dealer's failure and no longer provides rebates. All discounts from that point forward come out of the dealer's pocket, not the manufacturer's. Actually makes sense!
 

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I have a dealer with several new 2018's on the lot. I know the 2019's have the power dollar incentives, which if the 2018's are not heavily discounted with rebates probably makes a lot more sense to buy a 2019. I have a hard time believing Dodge would not significantly discount remaining 18's though.

Anyone know?
What Moe Par said.

Maybe I can add some additional info...

Generally the factory will refund what is referred to as a "hold back" (IIRC) which based on my source of info is 5% of the dealer's cost of the car. This occurs when the next year's models arrive.

This is supposed to help cover the dealer's flooring cost for the car.

Dealer's generally don't buy outright their cars but have an arrangement with a bank. The bank pays the factory for the car and the dealer just pays interest on the loan, referred to as the "flooring" cost. When the car is actually sold the dealer then pays off the loan to the bank.

'course if the dealer decides to "punch" the car he has to pay off the bank out of his pocket.

Oh, yeah... Punching. Let me cover this. Very likely those left over 2018s were "punched", marked as "sold" (but not registered), which is done by dealers to at least on the surface make it appear they are moving cars.

The dealer if at all possible has "cashed in" every incentive there was from the factory on those 2018s. This includes not only factory to dealer but factory to customer incentives. Everything. The dealer leaves nothing on the table if it can help it.

So, the dealer is sitting with some 2018s on its lot with any incentives already banked. You just have to come up with some offer that as best you can takes into account what discounts due to various incentives there might have been on the car.

For this you might have to look back at older threads to try to learn what people were paying for the 2018 models when they were new or just a few months on the lot.

But that was then. This is now. The downside is the dealer can have months maybe 12 (or more) of flooring costs in the car. He has that hold back but that can have gone to pay for the flooring costs.

Flooring cost: Say the car cost the dealer $60,000 -- just a number in this context. Say the commercial bank loan rate is 4%. 4% divided by 12 is 0.003333. So every month the dealer pays his bank $60,000 * 0.003333 or $200. After 12 months that $2400. Assuming that 5% number for the hold back is a good number the dealer received $3000 "rebate" from the factory. But $2400 of that has gone to cover the flooring cost. That leaves the dealer with just $600 and he's going to try to hold on to that too.

If the car has been punched this starts the warranty clock running. You need to know -- something in writing -- if the warranty clock has been started and when so you know how much warranty time the car has left.

There have been a number of threads on people wanting to buy left over cars. 2018s and even older. What I remember from this is the dealer didn't seem too inclined to discount the car all that much. Granted the car is still "new" (not registered) even if it is 1, 2 maybe even 3 years old (at least based on its model year) but the dealer will consider the car worth its new car price or close too it.

As I touched up above is a start would be to research past threads to find out what discounts buyers were getting for the MY of car you are interested in back when dealers were hot to move the car and incentives were being thrown around like money at a back alley dice game then compare this to what you can pick up a new car for given the current incentives.
 

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Englewood Dodge and Paramus Dodge have a huge 2018 Challenger inventory and minimal 2019's.
Can't know for sure but one possible reason the dealer has minimal 2019s is because it has so many left over 2018s. The factory will favor dealers who move cars. Dealers that don't move cars, well, they don't get favored. This can mean limiting the number of new cars dealers with too many last year's models still around are allotted or giving them poorer incentives or both.
 

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2018 Dodge Challenger T/A Plus in Yellow Jacket w/5.7L and A8 automatic
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I have a dealer with several new 2018's on the lot. I know the 2019's have the power dollar incentives, which if the 2018's are not heavily discounted with rebates probably makes a lot more sense to buy a 2019. I have a hard time believing Dodge would not significantly discount remaining 18's though.

Anyone know?
When I bought my 2018 Challenger T/A, I bought it at an extremely great deal. This thread describes it. Rebates in my area were $4,000 at the time.....your rebate may vary.


Got a smoking deal on the trade-in of my 2016 SXT Plus.....I received within $1,460 of what I paid for it two years earlier and had 12,000 more miles on it. In Kentucky, at 6% sales tax, my $21,500 trade value was actually worth $22,790 when the tax credit is figured in.

Additionally......the holdback is calculated as follows...
(MSRP minus Destination Charge)* .03 = Holdback
 

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What Moe Par said.

Maybe I can add some additional info...

Generally the factory will refund what is referred to as a "hold back" (IIRC) which based on my source of info is 5% of the dealer's cost of the car. This occurs when the next year's models arrive.

This is supposed to help cover the dealer's flooring cost for the car.

Dealer's generally don't buy outright their cars but have an arrangement with a bank. The bank pays the factory for the car and the dealer just pays interest on the loan, referred to as the "flooring" cost. When the car is actually sold the dealer then pays off the loan to the bank.

'course if the dealer decides to "punch" the car he has to pay off the bank out of his pocket.

Oh, yeah... Punching. Let me cover this. Very likely those left over 2018s were "punched", marked as "sold" (but not registered), which is done by dealers to at least on the surface make it appear they are moving cars.

The dealer if at all possible has "cashed in" every incentive there was from the factory on those 2018s. This includes not only factory to dealer but factory to customer incentives. Everything. The dealer leaves nothing on the table if it can help it.

So, the dealer is sitting with some 2018s on its lot with any incentives already banked. You just have to come up with some offer that as best you can takes into account what discounts due to various incentives there might have been on the car.

For this you might have to look back at older threads to try to learn what people were paying for the 2018 models when they were new or just a few months on the lot.

But that was then. This is now. The downside is the dealer can have months maybe 12 (or more) of flooring costs in the car. He has that hold back but that can have gone to pay for the flooring costs.

Flooring cost: Say the car cost the dealer $60,000 -- just a number in this context. Say the commercial bank loan rate is 4%. 4% divided by 12 is 0.003333. So every month the dealer pays his bank $60,000 * 0.003333 or $200. After 12 months that $2400. Assuming that 5% number for the hold back is a good number the dealer received $3000 "rebate" from the factory. But $2400 of that has gone to cover the flooring cost. That leaves the dealer with just $600 and he's going to try to hold on to that too.

If the car has been punched this starts the warranty clock running. You need to know -- something in writing -- if the warranty clock has been started and when so you know how much warranty time the car has left.

There have been a number of threads on people wanting to buy left over cars. 2018s and even older. What I remember from this is the dealer didn't seem too inclined to discount the car all that much. Granted the car is still "new" (not registered) even if it is 1, 2 maybe even 3 years old (at least based on its model year) but the dealer will consider the car worth its new car price or close too it.

As I touched up above is a start would be to research past threads to find out what discounts buyers were getting for the MY of car you are interested in back when dealers were hot to move the car and incentives were being thrown around like money at a back alley dice game then compare this to what you can pick up a new car for given the current incentives.
Nice explanation, I finally know how I got a great deal on my new 07 Magnum R/T but didn't get the lifetime powertrain warranty.
 

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Good info Rockster.

One thing though, the Holdback on Dodge cars to dealers is 3% of the MSRP not counting the Destination.


Sent from my SM-N960U using Tapatalk
 

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Great thread! I was hoping to get a leftover 2018 SRT 392 possibly for at least $10k off in early 2019. There are still a few I was looking at still for sale. You would think dealers would play ball at this point. It was much easier to order a 2019 scat with options similar to it for a much cheaper price and getting a new car. I am curious what happens to these leftover cars.
 

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Good info Rockster.


One thing though, the Holdback on Dodge cars to dealers is 3% of the MSRP not counting the Destination.


Sent from my SM-N960U using Tapatalk
The 5% of dealer cost hold back was my best info for other brands.

For Dodge dealers 3% of MSRP is probably less in dollars than 5% of the dealer's cost. Just makes the situation worse for the dealer if it can't sell the car. All that hold back and then some goes towards flooring cost.
 

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The thing to remember is that no matter what you buy the car for, it is just a used 2018 when you drive it off the lot. So you may be wildly upside down in the car and not know it. Probably better to get a 19 with the rebates- especially since the 20's will be coming soon. Most of the dealers around ATL are discounting Challengers 7-8K.
 

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I've posted this before but here goes. I bought my 2016 SPS when the 2018's were about to come out. They had the car listed at 12k off but I said I had to have more. After 2 or 3 days of negotiating I got 15k off. I plan on keeping the car at least 5 more years (I got the extended warranty from Steve White Motors) so the depreciation or number of years/models didn't mean anything to me. Also my car is fully loaded so it started at an MSRP of 51k. For a leftover 18 with the 20's about to come out, 20% off is a good deal, 30% off is a great deal.
 
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