Friday, September 5, 2008

Land Rover - Buy 1 and Get 1 Free

We're hearing that Land Rover of Ahaheim Hills, CA is offering current Land Rover owners a crazy promotion - Buy 1, Get 1 Free. That's right, buy or lease a 2008 Land Rover and get a 2006 Land Rover LR3 for "free". Technically, it's just a free 2-year lease on the LR3, but still I don't know of anyone that would balk at getting a fairly new Land Rover to drive around for free for a couple of years.

The reason for this promotion is likely the continued weakness in the luxury vehicle market & the economy, along with people continuing to opt for fuel efficient vehicles instead of gas guzzling SUVs. Sales of large trucks and SUVs have plummeted and it's not surprising that this particular Land Rover dealer is trying to be creative in getting people to buy.

The interesting scenario is that most large trucks & SUVs have experienced accelerated depreciation in the last 6-12 months due to high gas prices, and many of the current Land Rover owners are upside down if they financed their Land Rover purchases. So, it's hard for current Land Rover owners to take advantage of this offer without suffering a financial loss. The gentleman that forwarded us the promotion details stated "I still owe $34k on the 2003 Range Rover that I bought, and the trade-in value has now dropped to $20k. As much as I would like to upgrade to a 2008 Range Rover and get a free LR3 for my wife, it just doesn't make sense for me to cough up another $14k for the priviledge of getting another large SUV that is going to depreciate rapidly."

As you can see by the pricing charts on PriceHub, the Land Rovers are historically notorious for high depreciation rates (even before factoring in the effects from recent high gas prices). For prospective buyers that are thinking about the "Buy 1 Get 1 Free" offer, it might be good to take a look at the Land Rover charts on PriceHub to help you in your decision making process.

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Anonymous said...

double the insurance, double the gas? who needs to buy 2 SUVs at once? marketing gimmick all the way. they probably ream you for service too.

Anonymous said...

2006 LR3? do they just have a bunch of ones off lease that they can't sell?