What Happens To NEW CARS That Go UNSOLD?

Video Description

Do you ever wonder what happens to the new cars that go unsold at dealerships? Well, I'll explain exactly what happens in this video. My LASFIT Floor Liner Affiliate Links: Lasfit 2015-2020 Chevrolet Suburban Floor Mats: https://lddy.no/1n9vc Lasfit 2021-2025 Ford F-150 Floor Mats: https://lddy.no/1n9vb Discount Code: "AUGD1" for 18% OFF at Checkout! What happens to new cars that don’t get sold? - dealers take on the vehicle inventory, they accept the allocations. - Many dealerships are actually turning away allocations… at their own detriment. F150 Lightning is a prime example, dealers don’t want that burden. - Flooring costs (floor plan) - Greedy dealers get stuck with inventory… ever see Ford dealers with a lineup of Ford F150 Raptors are the ones charging markups? - Dealers that force addons and refuse to discount their new cars, trucks and SUVs - Salesmen incentives to move old inventory - Use it as a Demo vehicle, for management staff to use daily. - Service loaner vehicles - Whenever someone brings in a vehicle for - Manufacturer will pay the dealership to put a vehicle into the service department to serve as a loaner. - One thing I caution you on is… Big discounts on vehicles that have been sitting for 1-2 years isn’t always great. Lot rot is a real thing. Vehicles are meant to be driven! - Send vehicles to auction (Acura MDX example) - Some dealers would rather take a bigger loss at auction than sell to the public for a substantial discount. They don’t want to set a precedent. - Dealers don’t like to wholesale vehicles because they don’t get a chance to leverage their finance office. - The finance office is a prime opportunity for the dealer to milk you of cash… selling you inflated extended warranties, bogus protection packages, upselling your loan with a higher interest rate. Buy rate versus their sell rate. - During the pandemic, some dealers would “sell” desirable trimmed vehicles to sales staff only to buy it back from them a month or two later, to sell at a markup… USED! Saw this with TRD Pro Toyotas. - What if the dealership goes belly up? What happens to the vehicles on their lot? Goes back to the vehicle manufacturers to reallocate to other dealership lots. - The manufacturer will try to farm out certain models to specific markets that have demonstrated success in selling X vehicles. - If the inventory is very old, they’ll try to sell it off to rental companies and ad a worst case, scrap the vehicles for vital pieces components and metals. - Dealers and auto manufacturers are afraid to tarnish their brands reputation by selling at huge discounts. 50% Off a Ford Mustang wouldn’t be a good look… - Dealers have an opportunity to thrive in this environment. The current car market is flooded with inventory, people can buy the car truck or suv they want anywhere. - There is no supply crisis like we saw in the pandemic. Supply has far exceeded demand. If you need to buy a vehicle soon, just know you are in the driver seat. It is 100% a buyers market. As always, thank you for taking the time to tune into my videos. What are you seeing at your local dealerships? Are cars selling well? Not at all? Thanks for watching, please consider Liking and Subscribing for more! -Stay Untamed... #carmarket #carsales #LASFIT ENGAGE WITH ME ON INSTAGRAM: @untamed_motors