A customer who is doing research to buy a car will notice that car dealers are advertising "program cars" as featured deals. The cars appear to be a deal when a customer finds that one can be purchased at below-invoice pricing.

Program car sources

Program cars are 25 percent returned lease vehicles and 70 percent rental vehicles that are turned over for sale to car dealers. A small percentage of factory-maintained cars driven by company representatives and "buy back" vehicles, including "lemons," are also included in program car sales.

Program car details

Program cars are generally under 2 years old, with a maximum odometer record of 30,000 miles. Late-model cars driven by car manufacturer employees as advertising are turned in when the odometer reaches 10,000 miles.

Reality check

A pristine program car may be one of a small percentage of vehicles that has been part of a "lemon law" buy back or was severely damaged and repaired. Cars that have been damaged in floods, storms, theft and crashes have been placed back on the market.

Advertising

Program cars may also be advertised as "factory demos, smart cars or factory official cars." Car dealers purchase the vehicles at a low cost and are able to pass them on to the customer as a special deal which should never be over invoice list.

Warning

The customer must be aware that there is a chance that the program car will need costly repairs in the future due to hidden problems. It is vital that a buyer research the history of a car with the make, model and vehicle identification number before making a purchase.

Source:

Insider Car Secrets