What happens to used cars that don't sell?

Messages
1,331
Location
Washington for now
Thread starter
i know most used car dealers hit a home run on most cars they buy and sell or they would not be in business. But what happens to the ones that don't sell? are the scrapped? auctioned off again?
 
Messages
4,623
Location
Suburban Washington DC
Originally Posted by WhyMe
i know most used car dealers hit a home run on most cars they buy and sell or they would not be in business.
Not accurate at all. Some dealers may be around for decades many more quit within a year. They ALL eventually sell, some for a little loss, some for a big loss and if lucky, for a nice profit. Auction would be the last resort unless there is something major wrong with it that it couldn't be sold to a customer.
 
Messages
69
Location
NH
Based on an interaction I had with a dealer as a prospective customer today, drop price a few times, then off to auction.
 
Messages
1,411
Location
Western Canada
The industry term is WHOLESALED. The dealer may shop it around to other dealers hoping for a bite or calling in a favour. If nothing, they may ask employees if they want it for cost, and if nothing there then off to auction. Dealers make thousands off of 6 out of 10 cars, hundreds on a 2 or 3, and often lose money on 1 or 2 . A good manager won't hang on to a dud for very long, and will move it out to free up cash for the next profitable deal. A bad manager will be so scared of losing money that he will hang on to the car for months, miss out on multiple profitable deals, and end up losing more money anyway ... until he learns, or gets shown the door.
 
Messages
581
Location
Omaha, NE USA
I remember a handful of cars I thought wouldn't sell when I worked for a Chevy dealership. One memorable one was a teal colored Aveo sedan. I always joked that it looked like an Easter egg. Then one day a couple just as weird and quirky as that car came along and bought it... from me! They all sell eventually. Sometimes retail, sometimes at a loss, some at auction, and some to employees.
 
Messages
6,642
Location
South Florida
Everything has value. The key, is to find out what the market will bear, in a timely manner. You might get $10K for your sedan, to the right buyer, 3 years from now, or you could sell it right now, for $6k. You can either lower the price, or ship it off to auction and get rid of it, for some cash flow.
 
Messages
635
Location
Central Indiana
Originally Posted by fisher83
They all sell eventually. Sometimes retail, sometimes at a loss, some at auction, and some to employees.
This.
 
Messages
4,194
Location
Parts Unknown
Auctioned off. Someone always buys them at auction. Most trade ins (except the cream puffs) never see a spot at the dealer's lot.
 
Last edited:
Messages
2,806
Location
DELAWARE
Every Yugo sold back in the day so there is a butt for every drivers seat. Like mentioned, either wholesaled or price dropped until sold. They all eventually sell.
 
Messages
744
Location
New Hampshire
Some good responses on here and I agree. I'll add that when you trade your car in at the dealer, the dealer already has a very good idea of what they'll get for that car (or if they'll get anything for your car), and they are already negotiating that into the price you'll be paying for your new car as you're sitting there trying to get money off. They're ahead of you. Once in a while you may run into a dealer that is somewhat level with you. Or at least you they may be halfway level - my last buying experience felt like that - they told me my trade in would go to the auction and fetch between $5,000-$7,000 grand...that they would try to sell it to an employee first. I felt the same way. I figured the most I could get for the car in a private sale was $8,000. They gave me $6,000 for the trade...they initially offered me $4,500. In the end I'm sure I lost, but I was buying a new truck with a lot of rebates. They said I got a "great deal". The manager told me that, personally (lol)...said they didn't make much off of me, but that they were a high volume dealer and they would sell ten of these trucks this week...that it was a rainy day, the owner was on the property and personally had to approve the deal because...it was slow for a Saturday...yada yada yada. I actually kind of believed him.
 
Messages
4,212
Location
Michigan
Originally Posted by Railrust
They're ahead of you. I actually kind of believed him.
they're ahead of you for sure, but not me.
 
Messages
1,077
Location
Wisconsin
Originally Posted by GMguy84
Been flipping cars for awhile now, most go to auction. Dave
Don't forget that many used cars or damaged cars that are auctioned sell to foreign exporters. Less than 3% of used cars are sold by individuals for a reason. Many junk cars sell for more than their retail counterpart because of the strong export segment. Afterall you gotta fill the empty Super Cargo ships with something.
 
Messages
744
Location
New Hampshire
Originally Posted by dwcopple
Originally Posted by Railrust
They're ahead of you. I actually kind of believed him.
they're ahead of you for sure, but not me.
If you have a Chrysler 200, you're not in front of anyone.
 
Top