Would be really nice if the dealerships gave away all these cars for free!
Do you ever drive by a car dealership and wonder what happens to the cars that don’t get sold? What happens to all of last year’s models, when the latest models show up at the dealership? Sadly, dealers can’t just give the cars away for free.
Car dealerships are just franchises that buy new cars from the manufacturer in order to sell them for a profit. All the cars end up belonging to them, which means they can’t send the unsold ones back to the manufacturer for a refund. They have to sell them all off in order to make any money.
Dealerships have a few options to unload the unsold cars. There may be other markets in which the unsold cars have a higher demand, so those dealerships end up buying them, or trading the vehicles for something that has a higher demand in their market.
Some dealerships may end up using some of the unsold cars as loaners for customers getting their cars serviced. Others may sell off the unsold vehicles at auctions, which could cause the dealership to lose money, but at least they recoup some of the cost.
The last move a dealership can make is to price the cars to sell. Dealerships need to sell off all their cars to make room for the new models to come in. Search ads for new car deals at the link below!
Article sponsored by Top Family Mag