Re: A Question about "New Cars"
Posted: Mon Jan 26, 2009 1:24 pm
Few things: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?
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.