Nissan Allows Dealers to Sell Cars at a Loss, up to 15% Below Invoice

Several signs suggest that the automotive market, or at least certain areas of it, such as: Electric vehicles, for example, are cooling off a bit, and Nissan is feeling the brunt of it. According to Cox Automotive, vehicles sit on Nissan dealer lots for about 98 days before buyers purchase them. This has led the automaker to adopt a new plan that allows dealers to offer prices that are 10 to 15 percent below MSRP but also below the invoice price.

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According to a report by Autonews, Nissan dealers can offer up to 10 percent below invoice on almost any car, and up to 15 percent on the Armada. Essentially, Nissan allows dealers to take a loss at their discretion when selling cars at such a price. In some cases this isn’t necessarily a bad thing for the retailer as it allows them to be more flexible and reduce overhead costs. A trader expressed this view in a recent interview.

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“We want more flexibility to make better deals and drive more traffic to stores,” said a retailer in a major metropolitan area who paid about $80,000 in floor plan interest last month for more than 200 vehicles on his lot. “If I can reduce my floor plan costs by moving some of these cars, I will do it,” he told Automotive News.

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At the same time, other dealers blame Nissan for not covering the additional costs of increasing sales. “Nissan says, ‘We can’t afford to be in the market, so you have to… The responsibility has been shifted from the factory to us,'” said a dealer who wished to remain anonymous. This feeling seems to be widespread, with multiple sources saying they are on the way down, so to speak.

On its behalf, the automaker told the publications that it is adjusting sales programs according to market conditions and “offering more flexibility when necessary.”

In an effort to rake in profits wherever possible, traders say they use a variety of tactics. Internal financing is a crucial factor here, as retailers subsequently earn additional money. Using trade-ins is another way to recoup some money. In addition, dealers can advertise the price below the invoice and then try to sell the customer a better equipped trim level.

Of course, this doesn’t take into account the other somewhat shady tactics that traders use again and again. Junk fees, pointless add-ons, and extended warranties could also be part of the plan for some of these companies. For now, smart buyers interested in a less popular Nissan model might be able to snag a deal.

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