Most of the time they find a price point or package of incentives that get the last year's cars out the door. What you're missing here is that dealers have actually purchased their inventory from the manufacturer Those cars on the dealer's lot, the dealer owns them There's no sending them back as unsold before the new ones come in So the obvious response is that a dealer should adjust their purchasing so that they don't have a full load of old models on hand when the new ones come out Cars stay at the dealer until sold
Hard to wholesale unsold inventory as the cars that didn't sell were usually stuff o one wanted There is a amc dealer somewhere in nc that still had a couple new cars last i heard Just search for last amc dealer I also found that one could make more $ fixing 1980s chryslers than selling them. Cars with at least one birthday are the outlier… taking a loss is absolutely nothing new in this industry There have been times where if every one of my 100 or so used cars on my lot sold at asking price, it would have been a wash… zero profit
60 days, 90 days, that’s nothing. Good cars, or cars that people want like toyotas, suvs, low mileage cars etc sell for top dollar Cars with high miles, weird brands, smokers, etc sell for less But it’s rare to get a deal when 300 pros are looking at each car Reply reply ladychanel01 • reply reply secondrat • reply reply more replymore replies. The biggest misconception is that cars are cheap at an auction
Yes they are cheaper than retail, but you're also competing against 300 of your closest friends. Did peter explain the unsold cars sitting at the arizona factory He may have, and if i got it right, it is much more benign than being due to lack of demand or any other reason i tried to think of He repeats the same thing many times during the earnings call. Car dealerships carry what is called a blanket insurance policy on all of their unsold assets Typically these blanket insurance policies cover up to a dollar amount per incident, like 1 million dollars or something
The unsold inventory of tesla, the electric vehicle company owned by elon musk, has accumulated to such an extent that it is now visible from space Even after lowering prices on popular models like the model y, tesla still has 46,561 unsold vehicles from q1 2024, leading to a $2.5 billion free cash flow deficit. What happens to unsold cars in dealerships Theres still a ton of 2017 cars that havent been bought and car manufactures are pumping out 2018 models, what happens to previous years?
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