A "car for condo" down payment promotion has proved a hit for a Vancouver developer in the short time since its launch.
InGastown, a 61-unit concrete condo building being developed on East Cordova Street in Vancouver, has been accepting used cars towards the downpayment since January 24.
The marketing idea, dreamed up by , has proved a hit.
Cam Good of Key Marketing Ltd. said, “We closed six deals in the 10 days following the launch. This compares with 30 deals in the previous five months.”
The mostly young buyers “seem more interested in their iPhone than their car,” he added.
The promotion runs to the end of February. Under the plan, a buyer lacking a down payment can bring in their used car, which is then appraised. The assessed value can then be applied directly towards a down payment.
For example, if the car is valued at $5,400, the buyer could qualify for an initial 2% downpayment on a $269,800 one-bedroom condo at InGastown.
Buyers would still need to make monthly payments of $512 per month for up to 16 months as the condo development is being built to make up the minimum 5% down payment required for mortgage financing.
However, if the used car is worth $13,500, it would cover the 5% down payment with no monthly costs to completion, Good explained.
The use of incentives to sell new condos has tailed off in recent month as the market has improved, said Good, whose company markets a number of new condominium projects.
A survey of new condo developments in Vancouver and the Fraser Valley found few offering buyer incentives. Those that were limited the perks to upgraded appliance or finishing packages.
Sales of condominium apartments reached 753 units in January, up 30.7% from January 2013, reports the Real Estate Board of Greater Vancouver.
The benchmark price of an apartment property increased 3.7% from January 2013 to $371,500.
