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New Vehicles


romod's Avatar
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Join Date: May 2002
Posts: 200

06-19-03, 07:29 PM   #1  
New Vehicles

Does anyone know what the dealers do with their new vehicles they don't sell. I went looking for new cars today and asked them if they had any holdovers from previous years (hoping to get a better bargain) and all of them I went to said they sold every one of them. I don't buy it! Does anyone know what they really do with them? I went to one place that had literally thousands of new vehicles and I was the only shopper there and the salesmen were jumping out from everywhere trying to get my business.I have a hard time believing they would sell all of those in one year.

 
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cheese's Avatar
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Join Date: Jul 2001
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06-19-03, 08:23 PM   #2  
I never recall seeing any vehicles sent away from the dealership I worked at because they didn't sell. Some that didn't sell became demos and drivers for the employees, others went on sale, and there was almost always an end-of-year closeout where prices were low and they gave a large trade-in for ANY vehicle, running or not.

I remember they took in an old beat up mid '70s linclon mark 7 or something like that, I think it had to be towed in, and they gave a rediculous trade in for it. The junk inside the car would have filled SEVERAL trash bags, lol. It's a marketing strategy, but it gets cars sold.


"Who is John Galt?" - Ayn Rand (Atlas Shrugged)

God bless!

 
romod's Avatar
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06-19-03, 10:02 PM   #3  
Sounds like I need to go look at the end of the year! Cheese what month would be good to go?

 
knuckles's Avatar
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06-19-03, 11:13 PM   #4  
knuckles
I worked for a Lincoln-Mercury-Merkur dealer in 1989-90. We sold a 'brand new' 1988 Merkur Scorpio in Jan. 1990 for less than half of its original sticker price. We had 2 others remaining in inventory, both with less than 400 miles. They too were eventually sold for approx. 50% of the sticker price. The dealer was happy to be rid of them despite the loss.

My current employer bought hundreds of unsold Subaru Imprezas from dealers in the Southwest in the early 1990s. We got 'em for a song, used them for 30K miles & sold 'em when we were done with them.

Dealers have MANY options when it comes to disposing of unsold inventory. The most cost effective option is usually to just discount the car until it sells, even if it means taking a (small) loss on the sale.

Dealers almost always make a profit on the cars they sell, so beware the "$3000 for any trade" deals. Chances are you could get a better deal with no trade & arranging your own financing.

 
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06-20-03, 03:11 AM   #5  
Joe_F
Knuckles is correct. My dad worked at a Cadillac dealer before he died.

In 1987, I paid $3000 for a 1982 Oldsmobile Toronado fully loaded with just under 50k on the clock, and the car was clean and all there. It was filthy in the sense of needing a wash and a compound, but there was beautiful paint under all of that. The dealer owner charged my dad what the dealer paid for the car. The car would have been worth a lot more had the woman not traded it on her new Cadillac at the time.

If you make out on a trade, you won't make out on the new car!

 
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