I have to admit, that I once sold new and used cars at a local Buick Dealership.
That is where I learned about the "program" cars. There were 5 huge selling points.
1. It was sold during the current model year, or at the very start of the next model year, so the car was more or less "new"
2. The buyer received the balance of the factory warranty
3. Although it was a used car, it qualified for new car interests rates.
4. Since you were the first titled owner, you might as well consider it a one owner car after that
5. The savings were signficant.
For the salesman it was awesome because we got paid 25% of the "gross" on the car. That means, the difference between what the dealer paid and what it could be sold for. The new cars only paid a very slim margin, often as little as $25-$75 per car in my pocket on a $30,000 car.
I could demo a brand new park avenue, show off all the bells and whistles, then show the customer the $30K sticker (this car would net me $45 if it was sold). Then, I would say "while you are thinking about that, come across the lot with me and I will show you another Park Avenue". Then, I would show them the same car, same options, same engine, etc. on the same model year with 5-20,000 miles on the clicker. I could sell them this car for $21,000. I would ask them, why would you pay $30,000 to be the first owner of a new car....when, you could be the first titled owner of this beautiful program car? Plus, the dealer might have $18,000 in the program car that I eventually negotiate and sell for $20,500. Let's see, that is $625 in my pocket, vs. $45.
Sorry about the book, but I think this could be valuable inforamation to some out there.
