Buying down the rate to offer 0%

[danoneil]

As a Honda dealer, we never have 0% from Honda. However some of our competitors outside of our marketing area are buying down the rate from 1.9% & offer 0%. Or buying down 0.9% to offer 0%.

When I owned a business (not auto business) I would simply raise the price of what I was selling.

What is the best way to incorporate this stradegy ?

Is it as simple as increasing the price of the car to cover the interest ?

Do you create a separate fund to off set the interest ?

Thanks ahead of time ....

 

[john.quinn]

As a Honda dealer, we never have 0% from Honda. However some of our competitors outside of our marketing area are buying down the rate from 1.9% & offer 0%. Or buying down 0.9% to offer 0%.

When I owned a business (not auto business) I would simply raise the price of what I was selling.

What is the best way to incorporate this stradegy ?

Is it as simple as increasing the price of the car to cover the interest ?

Do you create a separate fund to off set the interest ?

Thanks ahead of time ....

Dan -- give me a shout at 570.820.6967. We have some experience there -- I'll hook you up with our Honda guy (since we're on the same team )