People are just discovering the truth about what happens to brand new cars that never get sold

Have you ever wondered what happens to the unsold brand-new cars?

It’s an important question that rarely crosses our minds.

With the significant increase in car production each year and the introduction of new brands, the number of unsold vehicles piling up has risen dramatically.

This growing issue raises a big concern, especially for dealerships, and the whole situation is explained in a video on the YouTube channel Easy Car Buying.

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What happens to brand-new cars that don’t sell

You might notice that dealers offer better prices at the end of the model year or during holiday sales. This is because they want to avoid the high costs associated with their unsold inventory.

While some vehicles sell quickly, others sit unsold for a long time.

These unsold cars cost dealers money every day through storage, maintenance, and interest on loans.

On top of that, manufacturers push dealers to buy new models, adding pressure to sell the cars that are still in stock.

This pressure creates a burden, and dealers often take losses on their unsold vehicles.

To manage their inventory, dealers sometimes buy unsold cars for their own personal use.

This helps their financial records look better, and they can avoid the stress of having too many unsold cars. After some time, they may sell these cars as used vehicles.

Other tricks to sell the unsold cars

Dealers also reach out to large companies, offering special discounts for their employees. For example, a dealership might contact a corporation like Apple to provide deals for its staff.

The dealers also motivate salespeople to show buyers the unsold models and may offer lower financing rates to make these cars more appealing.

If no one wants a specific car, dealers might contact other dealerships to see if they have customers interested in that model.

When all else fails, some cars end up at auction or are shipped to other countries.

Sadly, many unsold vehicles are sent to junkyards or dismantled for parts, resulting in significant losses for the dealer.

Understanding the fate of these brand-new cars helps buyers discover great deals while dealers face tough choices.