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What happens to unsold cars from the manufacturer?
A final resort for the dealer with vehicles that don’t sell at the dealership is to sell them at an auto auction. Most areas have auto auctions that are frequented by new- and used-car dealers.
Why are there no cars for sale?
A global shortage of computer chips has forced automakers to slash production. The result has been far fewer vehicles on dealer lots, just as the waning pandemic has fueled a pent-up consumer demand for cars, trucks and SUVs.
Do dealerships take all trade ins?
A car dealership will accept any car in any condition. They don’t care about dents, dings, rust, rips or stains in the upholstery. Even if the car doesn’t run, you can have it towed in as a trade. You obviously won’t get top dollar for the car, but you will rid yourself of the vehicle and all of its headaches.
What happens to new cars that don’t sell?
So, as we said at the beginning, the simple answer to the question of what happens to new cars that don’t sell is: there really aren’t any cars that ultimately don’t sell. Cars that don’t sell to retail buyers in the accustomed timeframe take a different route to be sold, but they are sold. Eventually.
What happens when a dealer buys a car from a manufacturer?
One place they can’t go is back to the manufacturer: Once a dealer purchases an inventory of cars from, say, Toyota, the vehicles are theirs. Instead, dealers may look outside of their local market to see if there’s a demand for the make and model they have on hand.
What happens to unsold cars at a car dealership?
Car dealerships are franchises. That means they buy new cars from the manufacturer and sell them at a higher price to make a profit. Therefore, once the dealership buys those cars, they belong to them. They can’t just send the unsold ones back to the manufacturer at the end of the year.
What happens to used cars when they go to auctions?
Auctions take a percentage of the sale, though, so dealers already discounting the car might take a loss. You might also see a nearly-new car used as a loaner for the dealer’s service department or sold to a rental car company.