What happens to new cars that don't sell?

[highmilegeguy]

Always remember that last years model is a old vehicle according to bluebook value. If you went around the block and back to the dealer to sell it or trade it in, he would throw that in your face. So never pay above bluebook for a 1 year old vehicle, even if it has 12 miles on it.
Its still last years model and considered a used car.

 

[01rangerxl]

On the "Cars in Barns" website there is a page showing a field full of "new" 1950s-1970s Chevys. Apparently the guy who owned the land had a Chevy dealer and when something didn't sell, he took it home. Of course the vehicles were deteriorating horribly sitting out in a field, but the pictures showed that they still had window stickers, plastic on the seats, etc. It was kind of sickening to look at actually.

 

[earlyre]

or the one a while back, with the warehouse full of "new" 97 Neons uncovered in...Taiwan or some such. had been loaded off the ship, into this customs warehouse, and forgotten for 10+ years...
barnfind of the year!

 

[earlyre]

there were still new '05(last yr of production) Azteks on dealer lots into 2007...
personally, i loved the aztek.(front end reminded me of a capybara) never got all the "worst car ever" jazz.

 

[IndyIan]

Originally Posted By: Bluestream
Originally Posted By: toneydoc
They sell all of them, eventually.


Correct. What happens is that the Manufacturer will have programs that provide incentives to the dealer. At some point, when most of that model are sold the Manufacturer will end the incentives. The dealer then is stuck with that car if it doesn't sell with no incentives from the Mfgr. Usually the dealer will push the car hard before the incentives end. When I bought my Grand Am new in 2002, it was a left over 2001. Dealer had it on at $4,000 below his cost. When I asked why he said "all incentive on these end on Monday". GM also had incentives, and I paid $13,000 for the car and list price was $23,000. I also used $3400 in GM visa dollars.

We got our Tracker the same way, but not 10k off, only $8500...

I imagine their must be the odd car left that's some terrible colour and some strange options that noboby really wants that must really go cheap, but once the incentives get to 30-40% off MSRP people will become pretty flexible on what they want.

 

[01rangerxl]

Originally Posted By: earlyre

personally, i loved the aztek.(front end reminded me of a capybara)


LOL, good reason to love a car...

 

[hattaresguy]

When a dealer gets a vehicle they finance it threw the manufacture, the terms are usually 6 months, and if the vehicle is sold before than they don't have to pay interest. If it sits to month 7 they start to have to pay interest and the previous 6 months interest that have accrued.

So they have a lot of incentive to move vehicles, hence prices start to drop as they collect dust.

OTOH you don't have to be a genius to push iron so this logic probably escapes most dealers, hence the stories of them not dealing on 2 year old cars.

This is why any dealer that doesn't want to order a vehicle for you is dumb as a brick, since those are there highest margin sales that they don't have to put a dime up for.

 

[eljefino]

Originally Posted By: hattaresguy


OTOH you don't have to be a genius to push iron so this logic probably escapes most dealers, hence the stories of them not dealing on 2 year old cars.


It's not a loss until it sells.

 

[Tdbo]

They eventually sell them. In March 2005, I bought a new 2004 Ford Ranger XLT Supercab. It stickered at 23K and I bought it for $13,800. There was a ton of factory money behind of it, they were willing to take a loss,+ I had a coupon for an additional $750. off if I was willing to finance through Ford Credit. Drove it four years (had 16K on it) and sold it for $12,600. At the time, I was looking at a used 2004 and couldn't get them below 15K.

 

[dishdude]

Originally Posted By: Tdbo
They eventually sell them. In March 2005, I bought a new 2004 Ford Ranger XLT Supercab. It stickered at 23K and I bought it for $13,800. There was a ton of factory money behind of it, they were willing to take a loss,+ I had a coupon for an additional $750. off if I was willing to finance through Ford Credit. Drove it four years (had 16K on it) and sold it for $12,600. At the time, I was looking at a used 2004 and couldn't get them below 15K.


That's a steal of a deal if I ever heard of one! It's amazing what the new car deals were from '02-'08

 

[Tdbo]

Originally Posted By: dishdude
Originally Posted By: Tdbo
They eventually sell them. In March 2005, I bought a new 2004 Ford Ranger XLT Supercab. It stickered at 23K and I bought it for $13,800. There was a ton of factory money behind of it, they were willing to take a loss,+ I had a coupon for an additional $750. off if I was willing to finance through Ford Credit. Drove it four years (had 16K on it) and sold it for $12,600. At the time, I was looking at a used 2004 and couldn't get them below 15K.


That's a steal of a deal if I ever heard of one! It's amazing what the new car deals were from '02-'08


I forgot to mention they threw a bed liner in also.

 

[doitmyself]

My local Jeep dealer is advertising this "beautiful" lime green, new 2012 Patriot for under $12,000, I imagine because of the color.

 

[eljefino]

^ That's the new this:

I can get it in metallic pea!

 

[hattaresguy]

Originally Posted By: doitmyself
My local Jeep dealer is advertising this "beautiful" lime green, new 2012 Patriot for under $12,000, I imagine because of the color.

That's not that bad of a color. They should ship it to a less conservative area, I see a lot of cars in odd colors along the coats of the country. Not so much inland.