Whenever you pass by a car dealership, had you ever wonder where unsold cars go? What will happen to them if new models of cars arrive? Of course car dealerships don’t just give the vehicles away for free.
Car dealerships are establishments that are authorize to sell or distribute different types of vehicles. They buy new cars from different manufactures and sell those vehicles at a higher price to earn profit. So if the dealership buys those vehicles, it already belongs to them. However if the vehicle is still unsold at the end of the year, they can’t return it back to the manufacturer, right? So before the year ends, they work hard to sell those vehicles to prospective customers.
There are some things the dealership can do if they don’t sell. For one, they can send the unsold cars to a different dealership where that particular design and model is in demand. One good example is a city car dealership with a pick up can exchange it from another dealership in a small town or village that needs it.
Another way to do is sold the cars through auction. The dealership will definitely lose a big amount of money because there will surely be discounted price. Also, unsold cars can be use as loaner car for customer’s convenience when they bring in their own car for service or maintenance.
The last option is to price the cars to sell. Manufacturers and car dealers want to sell old cars as much as possible so there will be no competition with brand new models. So my advice is it is much better to purchase a car in the fall because that’s the time when car salesmen and dealerships push to get last year’s cars sold.
Next time you pass by a car dealer and see lots of unsold cars, you’ll already know and wonder no more!