What happens to the cars that people DON'T buy?

Question

So I was just thinking today, and a question struck my mind and I didn't have an answer for it. so here it is

Lets say one year a car company makes 20,000 of a certain type of car, and sends them out to all sorts of dealers, but the dealers only sell 17000 of them in that year, and the company is already comming out with a newer model the following year, meaning 3000 cars are left.
These 3000 cars are brand new, no mileage no nothing,What happens to them?
Do the dealers drop prices on them?
Are they redistributed to other dealers?
are they sent to a warehouse somewhere where they are sold for cheaper prices?

what are the chances of this actually happening?

Answer 1

its simple really:

the dealers will drop the price on the unsold cars. if that does not seel them all, they will offer other incetives, like rebates directly from the manufacturer, or included service, etc. If that does not sell them all, they will usually move them to dealers that have sold out of those models. for example: if 4x4 trucks do not sell in southern california, they will ship them to oregon, where pretty much all trucks are 4x4. it is very likely the car will sell there. the other option would be for the manufacturer to take the cars back. by this i mean the dealer tell the manufacturer that they cannot sell the cars, then the manufacturer basically takes them to the auction, where they WILL be sold for shure, just at a much lower price.

these days, the big dealerships have all kinds of resources for doing research. they know exactly which region of US are demanding what cars. it is unlikely that new cars get unsold.

Answer 2

Yes they drop the price but only for a while to try and get them sold. remember last year when all those companies gave employee prices.
the companies do not send them to a ware house because every one of them will get sold. my lot had a 2004 new car on the lot when they were coming out with the 2006 's .
they usually offer rebates as well.

A dealer can also send them to an auction or sell or trade them to another dealership.

in most companies, once the parent company sends the car to the dealer, they do not have much to do with it. if the dealer can not sell it they basically loose money.

the basic answer is yes they will be discounted trough specials or rebates. some foreign car companies like Toyota will hardly ever offer rebates though.

Answer 3

HERE IS THE RIGHT ANSWER!!!!!
The manufacturers produce a certain number of cars each year. All dealers preorder their inventory from the manufacturer what models, how many etc is based on the previous years sales etc. The more cars a dealer sells the more he is allowed to order. So the manufacturer only makes what the dealers order. If the dealer has a surplus at year end. The manufacturer does give them rebates to compensate them. The cars are reduced and remain on the lot for sale.
Sometimes the dealer will sell them to a wholesaler or broker.
Other dealers sometimes buy them , but rarely.
As for used cars and trade-ins that the dealer doesn't want, they are sent to the auto auction. or sold to independent wholesale dealers.
Car companies only produce a specific number of each make and model. each year there is a greater chance that they will run out of a model than have too many.

Answer 4

There's an @$$ for every seat. The cars do get discounted (have you noticed the incentives to buy cars for the past 3 months?) and eventually sell. It's better to buy a car at the end of the year (a rainy Sunday afternoon at the end of the month) to get the best deal. It always works for me. I usually get cars for about $300 over what the dealship paid for it--BEFORE incentives. Always talk about the incentives AFTER you have agreed on the price of a car. Salepeople always try to use the incentives to reduce the price of the car to invoice--and make LOTS of money doing that. Don't fall for it. Agree on the price of the car, then subtract incentives.

Answer 5

the owner supplies you the identify, which might want to aspect out that it truly is freed from loans and liens. you need to also get a bill of Sale from the supplier to educate that to procure the vehicle. you're taking it on your interior of sight DMV and get the registration replaced on your call. there'll be cost. reckoning on the state the position you stay, you are able to also ought to pay sales tax on your purchase, even if you purchase from a individual.

Answer 6

I still see new 2005s advertised in the newspaper at steep discounts.

Answer 7

well peter is right, there is an *** for every seat. But...300 over will only work on some makes, don't bother offering that on a bmw or mercedes, we'll just throw you *** out.

Answer 8

some times the manufacturer gives them to corporate employees as demos, sometimes they're sold to hertz or avis rental agencies, sometimes wholesaled to big corporations as company cars

Answer 9

They keep getting discounted until they sell..

Answer 10

there is a graveyard, they take them there.