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Any car that's arrived in the dealer in the last week has likely not yet been financed by the dealer's bank. That means they haven't had to include it in their "floor plan." The "floor plan" simply stated are all the cars on the dealer's lot that are financed by the dealer's bank, and includes any insurance required to protect the vehicle in case of loss (theft) or damage (hail storm, vandalism, etc..) as well as any "prep" and advertising charges. Prep is simply removing the plastic bumper covers, putting in floormats, checking fluids, etc.. The dealer also has to pay to advertise the car for sale, insure it while on the lot, etc..

By finding a car on the lot a week old or less, the Dealer hasn't incurred floor-plan finance charges with their bank yet, and you don't want to pay for those charges.

I disagree. The opposite is true I worked as a banker setting up and servicing floor plans for several years and I know the longer a vehicle has been in dealer inventory - and the more interest paid on the floor plan - the more anxious the dealer is to sell it and cut his expenses.

I'll also tell you that a new car is the WORST thing you can buy, financially speaking. The second you drive it off the lot it loses 1/3 of it's value to you. Your absolute best deals in buying cars is to find a 2-3 year old model with low to medium mileage on it as someone else has already taken that 1/3 depreciation hit.

Also untrue. You will lose money buying a new car only if you SELL it the second you drive it off the lot. Of course the same is true if you buy a used car and sell it immediately also. But no one does this

I disagree. The opposite is true I worked as a banker setting up and servicing floor plans for several years and I know the longer a vehicle has been in dealer inventory - and the more interest paid on the floor plan - the more anxious the dealer is to sell it and cut his expenses.

You make a good point that the opposite is also true for the reasons you stated. Don't know about you, but I don't want to buy a vehicle that's been sitting on the dealer's lot for awhile (6 months or longer) because (a) chances are it's been test driven repeatedly even though the odometer says it only has 20-25 miles on it and you and I don't know if it's been mistreated during its break in period and (b) cars that sit for long periods of time that don't get driven tend to deteriorate. Hoses, seals, etc.. dry up, rust starts forming, etc.. Again, less likely on a brand new car, however I like to minimize the possibility of anything going wrong when buying a new car.

I'll also tell you that a new car is the WORST thing you can buy, financially speaking. The second you drive it off the lot it loses 1/3 of it's value to you. Your absolute best deals in buying cars is to find a 2-3 year old model with low to medium mileage on it as someone else has already taken that 1/3 depreciation hit.

Also untrue. You will lose money buying a new car only if you SELL it the second you drive it off the lot. Of course the same is true if you buy a used car and sell it immediately also. But no one does this

Your correct, no one turns around and re-sells a car immediately after they purchase it and I should've qualified my answer far better than I did. The fact however is this: the buyer of a new car takes the brunt of the depreciation the minute the car is driven off the lot. That's just fact. Now, if they trade-in that car in 2 years or less, you and I both know they're going to take a bath on the trade-in, and chances are high that they'll owe more on the car than it's worth. I think you and I both also know that when the trade-in value is less than the value of the car, a Dealer is all too happy to roll the difference between the two into a new loan on another new car because they make more money on the deal. By arranging to roll the loan and finance the new vehicle, the Dealer gets compensated by the bank (I forget the term, it's been over 20 years..)

The other fact is that car's are not "investments." Whenever a car dealer tells you that a car is the second biggest investment most people make --- run away!

Cars are nothing more than depreciating assets. Most people don't know or realize that which is why they're often surprised at how little they receive for their car on trade-in, especially if they trade it in 2 years or less after purchasing it in the first place!

Finally, the only person who "wins" in the car sales game is the Dealer (and the bank/finance company that finances the purchase.) The customer never wins the game, the best one can do is minimize their losses in the initial purchase, and then drive the damn' thing to the junk yard when its useful life is completely exhausted - and not a minute before.

That's how I should've qualified my answer.

The opposite is true I worked as a banker setting up and servicing floor plans for several years..

BTW: Don't often run into folks who understand how the car buying and financing game is played. Kudos for your valued contribution to the discussion and allowing me to clarify part of my response.

I'm willing to bet you're a car dealer's worst nightmare when you walk in to purchase a car. The things we learned in that business huh?