What happens to all the cars that never sold
Where dealers get cars that are not sold.
Did you ever wonder where automakers that sell their vehicles through the dealer network to put them in if they are not sold? Do you think that sooner or later the dealers sell all the cars, making maximum discount and luring customers various great offers? Actually no. Of course, each dealer over time accumulates a lot of non-liquid transport, which fails to sell even with maximum discounts. So where do they go unclaimed this transport?
Among the many motorists there is a myth that slow-moving and hovering cars are sent to special depots, where supposedly you can buy a car almost half the price. There is also a version that many unclaimed cars dismantled for parts, which then diverge on dealer network in order to use them in the technical centres for the installation warranty of the car. But in fact it is not.
We certainly understand that it would be nice if the dealers actually handing out free cars that are not sold. But you know that this is possible only in fairy tales.
In your opinion, are there many cars hangs from a dealer? I think unit? In vain so think. Did you notice the rows of brand new cars that are gathering dust for a very long time next to dealer centers and their Parking lots? Did you know that, according to statistics, 30% of these cars will never be sold?
Many cars will not be sold even up to the moment when the salon will start the delivery of new or restyled models. But where did the dealer get to them, and to make room for a fashionable autonovelties? Do all cars will be rented, sent to the facility or on spare parts? Of course not. Although some of these cars can really discount in the end to get the company involved with delivery of vehicle to rent, lease, etc. Also some cars can be sold to large taxi parks at favorable price. But not all cars waiting for a similar fate. Bulk liquid transport, a more complicated journey.
Most car dealers are franchises. This means that they acquire new cars from manufacturers and sell them at a higher price to gain profit. So when dealers buy cars, they become their owners. In this case, after the payment of the party machinery dealers immediately get from the official offices of auto companies and documents on the machine (title, customs documents, etc.). In this case, the dealers are unable to ship the automobile back unsold cars at the end of any period to free up storage space for new models.
In the end, to recover their investments, such dealer companies need to lure customers to their showrooms to get them to buy illiquid vehicles. The only way the dealer may be the easiest way to return your investment in the machine and to obtain the planned profit.
But not all dealers work on full advance payment for new cars. Some dealership are simple platforms for sale new cars. That is, the transfer of ownership of vehicles does not occur. Accordingly, the title to the car are kept by the automaker as long as the dealer will not find clients on the machine. Then as soon as the money will be deposited by the customer at the expense of the dealership, the dealer will send the money to the automaker, which in turn will bring to the salon title for transfer of ownership to the new owner.
In this scenario, the dealer with the automaker, the dealership receives from the manufacturer a percentage of the total sales for a specific period of time or has a fixed profit for each vehicle sold. In this arrangement, the selling dealer has the right to send to the factory unsold cars at the end of a predetermined period.
In this case, the factory will ship the illiquid vehicles in a special area, warehouses, etc. But if you think that the automobile is almost ready for free from such sites to give away cars or sell them for half the price, you are wrong. This is only possible in fairy tales.
After all, any car company need to return the money with each produced car. Otherwise, the world would long ago have gone bankrupt all the car factories.
For this car company unclaimed cars can throw the other car markets in other regions of the country and even in other countries. Moreover, when deciding on the transfer of illiquid vehicles will take into account the particularities of each market and the popularity of each model. Of course, illiquid cars will be sent to the market where they are most needed.
By the way, sometimes the dealers cooperate with each other to get rid of unsold balances. For example, if one dealership is experiencing a shortage of SUVs in Siberia, but has a large illiquid among cars, while the other dealer does not know what to do with SUVs in Moscow, but suffers from a shortage of cars, the dealer can swap those cars that are not sold. Such mutually beneficial cooperation allows the dealer a faster return of their money invested in the purchase of new cars.
Unfortunately, the dealers that bought new cars for resale in the cabin, not always guess the required number of new cars, generating periscope. In the end, the end of the year, the dealer accumulates a lot of unsold cars. To get rid of the balance at the end of the year or beginning of next year, many car dealerships are beginning to attract customers of different promotions/discounts. But even in this case it is possible to sell off the remnants. Then the dealer begins to accumulate real illiquid in the Parking lot, where he soon ends up storage space for new models. The dealer is forced to go even to the market of used cars for sale new cars.
Such remains often appear throughout the world at various auctions. However, in this case the dealer will lose money due to the devaluation of the car. But at least the dealer gets rid of illiquid and frees up space for new, more popular models. Some dealers are sometimes at risk, putting their illiquid Bank loans necessary to purchase new-fangled autonomies. It is because of these loans secured by illiquid and have fallen behind in our country, many of the once famous dealer AutoCity.
But most of all, of course, dealers and automakers are trying to get rid of the remnants with discounts. This is especially true when changing the lineup in the cabin or is about to begin deliveries of the restyled car. This usually happens in the fall. In this case, the task of the dealer and the factory to sell before the end of the year as more old cars whose sales have already leave much to be desired.
That’s why in autumn it is really possible to buy a new car at a favorable price tag. Though not always the dealers give good discounts. Sometimes, instead of discounts the dealers offer as a gift alarm, new tires, floor mats, anti-corrosion treatment and even refinancing interest loan (in this case, you almost do not overpay the interest on the loan), etc.
So, unsold cars sooner or later go away from the showroom, to make room for new acquisitions. As you can see, cars are often illiquid bring the buyers favor. After all, they really can be cheaper to buy or get from the dealer tasty gifts.
But, alas, no one will sell you a new car fixed for half the price because it is a direct way to bankruptcy not only the dealer but also of the plant.