So how do you spot a loss-lead ad?

[LOLyourFace]

Rossman is not currently avail. for my PM.

In my hand is a fresh sunday copy of Boston Herald. The paper is filled with car ads and I don't know how to spot a loss-lead ad. Do they denote it so? Or just start looking for any cars with low low prices?

I'm looking for Hyundai Tiburon 03 or Accords.. And loss-leads obviously only applies to new 2003 cars right? How about 02?
*confused*

 

[ThaGrandCow]

Pardon my ignorance, but what is a loss-lead ad?

 

[aphex]

ahhh, reminiscent of micro/macro econ

 

[rudeguy]

if its in the ad...its a "loss leader"
but car places dont call them that...its an ADV...and they never sell the ADV

 

[LOLyourFace]

Originally posted by: ThaGrandCow
Pardon my ignorance, but what is a loss-lead ad?

Dealers have about 1-3 cars they are willing to see way below their invoice (they're not making profit) to lure customers in. However, what you see is what you get. When customers want a diff. color or trim, then they make $$ by showing other cars at standard price.

 

[LOLyourFace]

Originally posted by: rudeguy5757
if its in the ad...its a "loss leader"
but car places dont call them that...its an ADV...and they never sell the ADV

ADV? What does that stand for? and what do you mean they never sell the ADV?

 

[aphex]

hes saying they NEVER sell the car at the advertisied price.... And its usually true, half the time they never even have the exact car they advertise

 

[rudeguy]

ADVertised piece...they will do anything not to sell you those cars..."step you" up to a car with more features/less mileage/ yada yada yada...just go in knowing what you want, and what you want to pay for it...and beware the nice man who just does your paperwork...he is the F&I guy...its his job to add on a couple extra thousand in insurance, warranties, rust proofing etc.

 

[RossMAN]

Sorry I wasn't available but I'm on right now.

I was at a Hyundai dealership this morning helping someone get into a Hyundai Elantra GLS for a little over $10k.

A comparable Honda Civic would have been around $14k.

 

[Yossarian]

Originally posted by: RossMAN
Sorry I wasn't available but I'm on right now.

I was at a Hyundai dealership this morning helping someone get into a Hyundai Elantra GLS for a little over $10k.

A comparable Honda Civic would have been around $14k.

details please! I love a good RossMAN hot deal story Someday I will share them with my children at bedtime. "This is the tale of Sir RossMAN and the evil B&M who wouldn't pricematch"

 

[Spac3d]

Originally posted by: PipBoy

Originally posted by: RossMAN
Sorry I wasn't available but I'm on right now.

I was at a Hyundai dealership this morning helping someone get into a Hyundai Elantra GLS for a little over $10k.

A comparable Honda Civic would have been around $14k.

details please! I love a good RossMAN hot deal story Someday I will share them with my children at bedtime. "This is the tale of Sir RossMAN and the evil B&M who wouldn't pricematch"

Yeah, I demand more info RossMAN!

 

[MacGaven]

RossMAN Tales.

 

[DanFungus]

Originally posted by: MacGaven
RossMAN Tales.

The Movie

 

[Spac3d]

Originally posted by: DanFungus

Originally posted by: MacGaven
RossMAN Tales.

The Movie

I bet RossMAN wouldn't star in it unless he got a price match up to Tom Cruise's fee for a movie.

 

[Spac3d]

Originally posted by: DanFungus

Originally posted by: MacGaven
RossMAN Tales.

The Movie

I bet RossMAN wouldn't star in it unless he got a price match up to Tom Cruise's fee for a movie.

 

[amnesiac]

Originally posted by: aphex
hes saying they NEVER sell the car at the advertisied price.... And its usually true, half the time they never even have the exact car they advertise

AFAIK it's California Law that they MUST stock the car they advertise for such a price. Most radio and newspaper ads mention a specific ID# for the car at that price.

 

[Pliablemoose]

The trick is to grab the paper early that day, run to the dealership & give them a hefty deposit on the auto in question.

Most loss leaders are the base models, I just bought a 03' Ford F150 for $11,800, sticker price on it was $18,600. I saw the ad in the Saturday Paper & sent wife with the checkbook (I was working), put $1K on it & finished up the paperwork on Monday.

Talking with the Quality Management guy on Wednesday during the follow up after the sale call, he indicated they lost $1K on the deal, but got 6 other people in to purchase it, and sold 2 of them upgraded models & made up the loss that weekend.

BTW, the sticker price & even the invoice is fiction, they really don't relate to what the vehicle costs the dealership. Invoice on mine was ~$15K, but if they lost ~$1K, it really only cost them $12,800.

I love the loss leader cars Just wish they'd run TDI VW's more often, only ever seen one & I bought it...

 

[NutBucket]

Originally posted by: amnesiac

Originally posted by: aphex
hes saying they NEVER sell the car at the advertisied price.... And its usually true, half the time they never even have the exact car they advertise

AFAIK it's California Law that they MUST stock the car they advertise for such a price. Most radio and newspaper ads mention a specific ID# for the car at that price.

This is true. You have to make sure you're the first one on the lot that morning to get the deal. And if they won't sell you that car then, its pure bait-n-switch. Go find your attorney, or at least make them think you are.

BTW: You can always spot the loss-leader by the fine print,"only one at this price".

 

[LOLyourFace]

sigh.. wish me luck.

 

[Pliablemoose]

If they're all gone, just bide your time till next weekend, you can save time by calling the dealership to see if the loss leader is sold or not.

Keep track of the ads, so you can tell which one is the best deal.

 

[RossMAN]

I'm going to snail mail LOLyourFace some of our local loss leader ads tomorrow.

So he can see what I'm talking about

 

[LOLyourFace]

Originally posted by: Pliablemoose
If they're all gone, just bide your time till next weekend, you can save time by calling the dealership to see if the loss leader is sold or not.

Keep track of the ads, so you can tell which one is the best deal.

whoa, whoa, wait

this is weekly thign then? they're giving up at least ONE loss lead car EACH week for the ad?

I thought it was per year or something, for every car releases.. could anyone else clarify?

 

[RossMAN]

Yes it is usually weekly, not yearly. I thought you knew this?

Every loss leader ad usually has anywhere from 1-7 cars listed.

Towards the bottom of the ad should have a few VIN numbers listed.