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With prom season officially over and slower summer months already here, many operators are looking to unload stretch limousines as they have done in previous years. But this year is not like previous ones. The new reality may slap you in the face if you don’t know the facts. Industry veterans Warren Meyers and Jay Glick explain the new rules.
NEW OR USED?
New cars are at the lowest prices ever!
Used cars prices are just as low or lower.
According to Warren Meyers, Owner of JWDLimosales.com, one of the largest used limousine sales companies in the U.S., there are plenty of bargains to be had, but before you jump make sure you are able to get financing.
“The finance companies are not as loose with funds as they once were,” Meyers warns. “Many of the coachbuilders overbuilt last year, which has driven down the prices of new and leftover limousines. What it’s done is also drive down the price of used vehicles. Apples to apples from last year, the same vehicle is now worth $4,000 to $5,000 less. Operators trading in their cars have sticker shock when they hear what builders are willing to pay for their trade — that is if they take them at all.”
Overseas markets still exist for used limousines.
True, but there are fewer of them and they no longer are the limousine graveyards for all the junk left.
“Overseas buyers want low-mile vehicles in pristine condition at a bargain price. What once was a receptacle for all of the old-body style, high mileage vehicles, no longer exists. Overseas markets no longer want our garbage,” explains Jay Glick owner of limosdirect.com, a bonded limousine dealer for over 15 years in Marlborough, N.J. “There really isn’t a market for old body style, high mileage vehicles anymore.”
There are many repos available on the Internet.
The same car is being sold by multiple dealers on multiple sites, which gives the appearance of available repo gluts.
Meyers and Glick believe that this is an extremely deceptive practice. “Only buy from dealers that have possession of the vehicle,” Myers cautions. “Anyone can put a list together of consignment vehicles across the country. We are bonded dealers. We have to pay insurance for our dealer’s license and go to class annually to renew it. Brokers may not have the insurance or bonds. You really need to know who you are dealing with. Before we sell cars, we go over them with a fine-tooth comb. We detail them and make sure that they are mechanically sound. A broker might not ever touch a car he sells you.”
Glick even takes it a step further by posting the VIN number of the vehicle on his website. He believes that he has nothing to hide and he encourages his buyers to pull Car Facts or other reports on the vehicles that he is selling.