Page 1 of 1

Re: A Question about "New Cars"

Posted: Mon Jan 26, 2009 1:24 pm
by Matt G
BierGeek wrote:I got curious for some reason last night about something and everyone I asked had no answer for this question. When that happens, I'm sure someone here will know!

What happens to new cars that don't sell? For example, I'm sure not every '08 vehicle was sold and they have to make room for the '09s. What do they do with them? I don't think I've seen a dealer try to sell a new car from the previous year. I'm sure there have to be hundreds, at least, of vehicles that fall into this category. Some kind of auto purgatory? :wink:
Few things:

I have seen cars that have been 2-3 model years old still for sale as new. Recent cases have been the Pontiac GTO and the RX-8.

Also, these cars, after about 12 months of sitting, will get some deep discounts. Usually the dealer can even go back to the manufacturer for some incentive cash to help if it is a "product" issue.

Dealers will often buy them at cost and use them as loaners, if appropriate.

Sold to rental agencies. Specifically the non-mainstream agencies.

From seeing stats for car sales on another forum, I can tell you that you will see an odd car pop up sometimes on monthly reports. A car that has been discontinued for 2 years will show up on a transaction. Dealers are pretty much stuck with these cars once they come off the carrier and they are responsible for them. Therefore, they will normally do whatever they can to move old inventory. Often, they just let them go into the channels mentioned above, or a sales manager or top-earner will get an old inventory car as a company car.

Re: A Question about "New Cars"

Posted: Tue Jan 27, 2009 10:46 am
by ken k
very common, I am sure especially right now with the current economy and the auto industry struggling.

As Matt said the dealers will often sell these models with a high discount. I am sure there are many leftover '08's out there. Often times they are the high end models with lots of options that most people do not want.

It is also very common in the motorcycle world to find "NOS" "new old stock" models.

ken k

Re: A Question about "New Cars"

Posted: Thu Jan 29, 2009 6:36 pm
by cjk
Matthew Gilchrest wrote:
BierGeek wrote: I have seen cars that have been 2-3 model years old still for sale as new. Recent cases have been the Pontiac GTO and the RX-8.
Funny, my next door neighbor has an RX-8 and I have a GTO.

All of the *new* GTOs I've seen languishing on dealer lots are there because the dealers would not discount the price.

Christian

Re: A Question about "New Cars"

Posted: Fri Jan 30, 2009 9:53 am
by Matt G
cjk wrote:
Matthew Gilchrest wrote:
BierGeek wrote: I have seen cars that have been 2-3 model years old still for sale as new. Recent cases have been the Pontiac GTO and the RX-8.
Funny, my next door neighbor has an RX-8 and I have a GTO.

All of the *new* GTOs I've seen languishing on dealer lots are there because the dealers would not discount the price.

Christian
The RX-8s that sit are normally automatics, since they have both less appeal and horsepower while getting terrible mileage. I know that most of the car-buying public buys automatics, but not in some cases, as a RX-8. Also, a lot of dealers don't think they have to discount sport(s)(y) cars.

In regards to the GTO, I think two problems happened:

First dealers thought that people were going to come in droves to buy a "new" GTO on name alone. The car, while being superior in nearly every facet to the GTO of the 60s and 70s, had little appeal because it lacked the retro styling that is popular. Dealers failed to recognize this, and kept the price high.

Second, the car, as I am sure you are well aware, is made in Australia. The costs alone of bringing the GTO stateside were tremendous, and prohibited GM from giving the dealers the same incentives and holdbacks as usual. In turn, this also kept dealers from reducing the price.

Funny thing is, there were a few dealers who actively got the word out that they were pushing these cars off the lot cheap. I saw quite a few people acquire these in the mid-to-high $20Ks ($5-8K off MSRP). Once the price got close to being where the market existed, which was around the Mustang GT price point ($25K), GTOs sold okay. It is probably a better car than the Mustang, but the Mustang carries image and brand strength, which allows for less "stuff" for the same price.

If you have a dealer with a GTO in stock locally (I wouldn't be surprised, there are still a good number in inventory, IIRC), then that is a safe way to know where not to do business!

Re: A Question about "New Cars"

Posted: Sat Jan 31, 2009 12:21 am
by MartyNeilan
2 thoughts on the above:

A) If they gave the RX-8 the horsepower to match its handling (stellar) and gas mileage (sucko) then it woud be hot. At least 300, probably 325-350 bhp is what this car really needs to live up to its potential as a street legal racecar. Oh yeah, fix the Wankel reliability problems. And tar-and-feather anyone who even thinks about buying one of these with a slushbox.

B) I don't know if you encountered this, but the GTO had all kinds of front suspension and shock problems. This happens when you put much wider tires on the car than the suspension was designed for. Want a reincarnated muscle car? Gimme a 94-96 Impala SS with a blower any day :D

Re: A Question about "New Cars"

Posted: Sat Jan 31, 2009 3:54 am
by tofu
:tuba:

Re: A Question about "New Cars"

Posted: Sat Jan 31, 2009 11:25 am
by MartyNeilan
I remember the Ford Probe! In its day, a very well designed car (thanks, Mazda)
I heard they had even gone as far and made up the badges that said Mustang IV.
We all know how successful the Mustang II was...
Considering how mediocre factory V8 performance was in the mid-late 80's (A joke at GM and nonextstent at Dodge) the Probe GT with the turbo 4 with multivalve head, 5 speed, and ABS had very respectable performance - excluding the FWD handling characteristics.
It came out around when I was a senior in high school. I really wanted one. Too bad I wound up driving a 1981 Escort station wagon instead! I was later vindicated when I got a dirt cheap 67 Mustang fastback with a 289 and open headers. Adding a Holley 4v on top of an Edelbrock Performer made for a very decent ride. Unfortunately the frame was about rusted in half.

Re: A Question about "New Cars"

Posted: Mon Feb 02, 2009 8:31 am
by Matt G
MartyNeilan wrote:A) If they gave the RX-8 the horsepower to match its handling (stellar) and gas mileage (sucko) then it woud be hot. At least 300, probably 325-350 bhp is what this car really needs to live up to its potential as a street legal racecar. Oh yeah, fix the Wankel reliability problems. And tar-and-feather anyone who even thinks about buying one of these with a slushbox.
The RX-8 is at least an autocross superstar (as of late). I have talked with owners who have had these with little incident, but they are more familiar with Wankels and know how to care for these insofar that they rev them when up to temp and get them up near redline every once in while. In regards to mileage, a lot of owners get good mileage by maintaining an 80mph average due to it being in the sweet spot of the engine's RPM range.