Red Tag Sale, Tent Sale, 72 Hour Sale, Blow Out Sale! These are just three events geared at bringing you into a dealership. The marketing makes it seem like if you don’t buy a car during this “limited time”, you’ll miss out on the greatest opportunity ever. And it will never happen again.
Don’t fall for it! The discounts aren’t that special. In fact, they’re the same discount you can get any day of the month at the same dealership. The only difference is in the hype and the pressure put on you once you walk onto the lot. These sales gimmicks are designed specifically to move old inventory. Cars that have been sitting on the lot for three months or more. All the newer, or fresh, inventory is also on sale but at a much less discount.
Do you benefit from these sales? No! As I mentioned, you can get the same deal any day, any week, any month of the year. So who profits from them? The dealer and the salesmen. The dealer gets a kickback from the factory on selling old inventory and can order more new replacements. The salesmen get cash bonuses for selling them, with the bonuses increasing with the more they sell. So they will apply much more pressure on you to buy now!
Don’t fall for this hyperbole. It’s nothing special at all. It’s all in the packaging of the sale itself. With no benefit to you, the buyer.