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#2605855 - 04/21/12 04:38 PM What happens to new cars that don't sell?
teambeechstreet Offline


Registered: 05/25/05
Posts: 322
Loc: NorCal
Anybody know what happens to new cars on dealer lots that can't sell? There are so many new models produced that I'm sure not every single one of them can be sold. What happens when the dealer just can't sell a car? Do they return it to the manufacturer for recycling? Disassemble it for parts?
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#2605859 - 04/21/12 04:42 PM Re: What happens to new cars that don't sell? [Re: teambeechstreet]
John_K Offline


Registered: 12/08/06
Posts: 2291
Loc: Columbus, Ohio
I would think if it gets marked down enough it would sell.

John
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#2605861 - 04/21/12 04:44 PM Re: What happens to new cars that don't sell? [Re: teambeechstreet]
toneydoc Offline


Registered: 12/16/11
Posts: 1021
Loc: War Eagle
They sell all of them, eventually.
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#2605863 - 04/21/12 04:47 PM Re: What happens to new cars that don't sell? [Re: toneydoc]
Warstud Offline


Registered: 09/02/05
Posts: 2874
Loc: MIchigan
Originally Posted By: toneydoc
They sell all of them, eventually.


Even the Pink ones? laugh

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#2605879 - 04/21/12 05:02 PM Re: What happens to new cars that don't sell? [Re: Warstud]
antiqueshell Offline


Registered: 03/02/12
Posts: 4257
Loc: chicago, Illinois
My guess is that some of them become fleet vehicles.

Sold in a mass quality at a value price to rental car companies. Of course they WILL NEVER tell you about this.

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#2605882 - 04/21/12 05:06 PM Re: What happens to new cars that don't sell? [Re: teambeechstreet]
demarpaint Offline


Registered: 07/03/05
Posts: 21382
Loc: NY
When I worked selling KiA and Suzuki back in 2001 we had quite a few left overs. They were deeply discounted and sold at a loss, hoping the Finance Manager could make some money in the back end of the deal. We had a few for close to 1 year after the 2002s rolled out. Needless to say the manager responsible for ordering too much inventory, and not cleaning house got the boot.
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#2605883 - 04/21/12 05:06 PM Re: What happens to new cars that don't sell? [Re: teambeechstreet]
simple_gifts Offline


Registered: 07/26/04
Posts: 9062
Loc: Middlesex County CT
My 2006 B2300 was still on the lot Memorial Day of 2007. I didn't even know Mazda sold pickups @ the time. Needless to say it was the only pickup on the lot. It was about $5000 off list price with all the factory to dealer stuff. I definitely would not have bought it if it were not for the discount.


Edited by simple_gifts (04/21/12 05:07 PM)
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#2605891 - 04/21/12 05:27 PM Re: What happens to new cars that don't sell? [Re: teambeechstreet]
fdcg27 Offline


Registered: 09/25/09
Posts: 9442
Loc: OH
Every new car gets sold.
It's just a matter of whether the dealer can make any money on it at the price they have to accept.
If anyone is looking for a real deal on a new car, just look for prior model year cars on any dealer lot.
Check online first.
Discontinued or last year of an old design vehicles should be especially cheap
They're anxious to get rid of these cars, and will likely take a low-ball offer, particularly if you start walking out once you've made it.
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#2605893 - 04/21/12 05:32 PM Re: What happens to new cars that don't sell? [Re: toneydoc]
Bluestream Offline


Registered: 09/13/03
Posts: 3953
Loc: Waterloo, ON
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.


Edited by Bluestream (04/21/12 05:40 PM)
Edit Reason: spelling
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#2605902 - 04/21/12 05:52 PM Re: What happens to new cars that don't sell? [Re: Bluestream]
nitehawk55 Offline


Registered: 04/01/10
Posts: 1043
Loc: Ontario , Canada
Had a local Ford dealer that ordered 4 or 5 Crown Vics for a local Taxi cab service and the deal went bad . Dealer had those all white cars for about 3 years but eventually sold them .
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#2605922 - 04/21/12 06:22 PM Re: What happens to new cars that don't sell? [Re: teambeechstreet]
wirelessF Offline


Registered: 10/04/07
Posts: 1259
Loc: Oahu, Hawaii
What happens to used cars that don't sell?

I see a lot of the small used car lots closing here. Where do all those cars go?
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#2605923 - 04/21/12 06:23 PM Re: What happens to new cars that don't sell? [Re: teambeechstreet]
Hermann Offline


Registered: 08/10/05
Posts: 2356
Loc: Kansas City
Dealer auctions most likely
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#2605933 - 04/21/12 06:34 PM Re: What happens to new cars that don't sell? [Re: teambeechstreet]
widman Offline


Registered: 05/27/02
Posts: 3071
Loc: Bolivia
A few years back i was at the local toyota dealer. I asked why the two year old cars were more than the new ones. He said they had two years of interest to pay.
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#2605937 - 04/21/12 06:39 PM Re: What happens to new cars that don't sell? [Re: John_K]
fisher83 Offline


Registered: 01/26/12
Posts: 295
Loc: Omaha, NE USA
John_K is right. They eventually mark them down to the point that they do sell. Some cars sit for well over a year before they finally sell. I spent a couple of years selling new Chevy's and Cadillacs. It was always frustrating to see them "give away" the car at the end of the year that you were a couple hundred bucks away from selling at one time but the sales manager wouldn't budge. I don't miss working in that business at all!
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#2605946 - 04/21/12 06:43 PM Re: What happens to new cars that don't sell? [Re: teambeechstreet]
Oil Changer Offline


Registered: 08/28/06
Posts: 1415
Loc: Detroit Metro
They sell them cheap.

My first diesel truck was one that was built for a city electric company that only bought 3 out of the 5 they ordered.

Lucky me.

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