Car dealerships have to constantly upgrade their fleet with the latest makes of vehicles and make sure all vehicles are maintained and well serviced on time. When you drive past a car dealership, you would have seen rows and rows of brand new cars on display. A growing number of customers like to purchase the latest model cars unless they have budget constraints to opt for the older models. But, have you ever wondered what happens to the used cars that don’t sell or if the company wants to push out the older cars and need more showroom space to stock the new models?
Sale with Big discounts
The car dealership will try to sell the used cars at a big discount. A good sales manager would move all the older cars to the front of the lot once the sale is announced and try to push customers to purchase them. Customers who don’t mind the model or make of the car or who are bargain hunters will gravitate towards such a deal and make the big purchase.
Wholesaler or Another market with demand
Another option for the car dealership is to send the cars to another market where they may be in demand. Since the cars are purchased by the car dealerships from the manufacturers, they have no way of returning back to the manufacturers. Hence, shipping it to another market or selling it directly to another wholesaler are some options.
Having cars that don’t sell and just parked in the lot is going to take up a lot of showroom space and eventually going to cost a lot for the car dealership. Once all means of big discounts and trying to push it to the wholesaler does not work, the used cars are sent for auction. Since the car would be already discounted, sending them for auction might be a loss for the dealership. However, the loss also compensates for how badly the dealership wants to get rid of the lot of used, old cars.
Cars that don’t really make it to any of the above may be used as loaner cars by the car dealership. When customers come to drop off their vehicles for service, the dealership can pitch these cars as their transportation substitute until their vehicles get ready.
Eventually, the winner, in the end, is the buyer. These unsold cars benefit the buyer as he is able to purchase at a great bargain.
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