equation and get the car for less.TIP: Sometimes you can drop the service contract from the^
You can use the savings to get a longer-term service contact or one thathas such features as a prorated-friendly refund, and coverage for high-
failure rate tech like navigation systems.
PROGRAM CARS
These have historically been ex-rental vehicles, sold to the likes of Hertz orEnterprise at super-low prices, with a guaranteed buy-back price from the
manufacturer. After the they’re bought back, the manufacturer gets themready for sale at auction or sometimes through their franchised dealer
network
But now that the car companies are managing production better to meetdemand (as we discussed in the chapter on new cars) things have changed (^)
a bit. The manufacturers realize that having tens of thousands of currentmodel year cars come into the market only depresses the resale value of (^)
that model, never mind impacting sales of the new ones sitting on the lot.But the car companies are ultracompetitive, so program cars still get
shoved out to rental companies so that, say, Toyota can say it sold moreCamrys than Honda sold Accords.