webforjason

You've surely been on the highway next to one of those large 18-wheelers transporting half a dozen or so vehicles that are fresh off the line to their new home on a dealer’s lot. However, those lots are seldom empty, so what happens to the cars that haven’t sold when space has to be made for these newer models? There are a few options.

 

 

First, the dealership is likely to drop the price. If there are still no bites, the price may drop even more but now with decreased rebates so the dealership can still recoup their investment. There might also be a special employee pricing offered. As time goes on, special financial offers may be tacked onto a vehicle such as zero percent financing and other incentives. After a significant amount of time, the dealer may simply want to cut the loss and drastically reduce the price in a last ditch effort to move it.

 

 

A dealership may contact their counterparts in other locations where the vehicle may have a better chance of selling. The price may have to be reduced, but there is a greater chance of recouping a significant amount.

 

 

Some of these vehicles may be sent to auto auctions where smaller dealerships are looking to increase their inventory with “new” stock at below market prices. They, in turn, can sell to their niche customer base. Auctions can attract smaller dealers who come in search of quality cars or shop on a client’s behalf. Rental companies may also consider the vehicle for its fleet. The problem the dealer faces with this option, however, is that they have to pay a cut to put their already under-valued vehicle up for auction, recouping even less of their investment.

 

 

While this occurs rarely, a dealership can offer a vehicle up as a donation for a specific cause or to a nonprofit. The charity, in turn, can auction off the vehicle to increase their funds. The info on the amount that they received is given to the dealer to use for tax credit. This method provides the dealership with the least amount of financial gain as there may be a cap to the amount the company can write off.

 

 

If the space is needed and a sale is not eminent, the vehicle can be moved to a storage lot temporarily. There are numerous locations where automobiles without homes sit in long lines waiting for demand to increase, as might be the case in a time of economic downturn, or when another decision is made about its fate.

 

Unsold “new” cars can be hidden gems on the lot when dealers are trying to move them. Just a few months can make a huge difference in what a dealership is willing to take to move it to make way for incoming inventory.