Author Topic: Unsold New Vehicles... What Happens??? (Read 3212 times)

pg2676 · « **on:** May 27, 2009, 08:48:57 pm »

With the economy in the situation it is, and the auto dealers experiencing record-low sales, what happens to last model year vehicles that do not get sold? There HAS to be a dumping ground or "Superstore" for the unsold 2009, 2008, and dare I say 2007 model year vehicles that despite the dealer network's best efforts, was just never sold. They have them in the UK and various EU countries, what about here in Canada?? With the abundance of inventory currently sitting on various domestic dealer lots, they have to do something with them.

??

ovr50 · « **Reply #1 on:** May 27, 2009, 08:52:27 pm »

IMO, the main solution will be to keep reducing prices until they find a home. At some price, prior model year new vehicles will sell.

If gas prices sky-rocket, which could happen in the next few years, there could be some models that would be very hard to dispose of (eg. a Hummer, or those gigantic International trucks for hauling motor homes, etc). Some could even be sold for scrap, if things got bad enough. Dunno exactly...

articsteve · « **Reply #2 on:** May 27, 2009, 09:00:10 pm »

I agree. Every vehicle finds a home eventually if the price is low enough. The Banks are gonna start to move in on the GM and Chrysler stores that got cut so their inventory will be seized and either bought by other dealers or wholesalers. In any event, it will drive prices down across the board until the inventory is gone and it's gonna last at least a year.

pg2676 · « **Reply #3 on:** May 28, 2009, 12:00:21 am »

Quote from: ovr50 on May 27, 2009, 08:52:27 pm

IMO, the main solution will be to keep reducing prices until they find a home. At some price, prior model year new vehicles will sell.

If gas prices sky-rocket, which could happen in the next few years, there could be some models that would be very hard to dispose of (eg. a Hummer, or those gigantic International trucks for hauling motor homes, etc). Some could even be sold for scrap, if things got bad enough. Dunno exactly...

I refuse to believe that with such reduced consumer confidence in brands like GM and fact that people and fleets are just plain not buying, that dealers will still be able to unload the massive inventory they are sitting on.

ovr50 · « **Reply #4 on:** May 28, 2009, 12:04:13 am »

Quote from: pg2676 on May 28, 2009, 12:00:21 am

Quote from: ovr50 on May 27, 2009, 08:52:27 pm
IMO, the main solution will be to keep reducing prices until they find a home. At some price, prior model year new vehicles will sell.

If gas prices sky-rocket, which could happen in the next few years, there could be some models that would be very hard to dispose of (eg. a Hummer, or those gigantic International trucks for hauling motor homes, etc). Some could even be sold for scrap, if things got bad enough. Dunno exactly...

I refuse to believe that with such reduced consumer confidence in brands like GM and fact that people and fleets are just plain not buying, that dealers will still be able to unload the massive inventory they are sitting on.

Ok, let's pretend you are right, now what happens to all that inventory??

Everything has a price, just how deep the discount has to be is the only question...!!

Cord · « **Reply #5 on:** May 28, 2009, 01:48:16 am »

Quote from: pg2676 on May 28, 2009, 12:00:21 am

Quote from: ovr50 on May 27, 2009, 08:52:27 pm
IMO, the main solution will be to keep reducing prices until they find a home. At some price, prior model year new vehicles will sell.

If gas prices sky-rocket, which could happen in the next few years, there could be some models that would be very hard to dispose of (eg. a Hummer, or those gigantic International trucks for hauling motor homes, etc). Some could even be sold for scrap, if things got bad enough. Dunno exactly...

I refuse to believe that with such reduced consumer confidence in brands like GM and fact that people and fleets are just plain not buying, that dealers will still be able to unload the massive inventory they are sitting on.

You should not question such things. It is of course, one of the world's great lies that every car gets sold. The truth is that every year tens of thousands of unsold cars are gathered at a secret location and are made available to members of the Illuminati, Freemasons, Skull and bones society, the Rosicrucian Order, and descendants of the Knights Templar. Lately there has been some lobbying to extend the sale to Costco card holders as well. Pricing is at 5 cents on the dollar.

Strange, who's this large albino fellow coming up my walk.....

Leviathan · « **Reply #6 on:** May 28, 2009, 01:57:54 am »

Quote from: Cord on May 28, 2009, 01:48:16 am

Strange, who's this large albino fellow coming up my walk.....

johngenx · « **Reply #7 on:** May 28, 2009, 10:25:13 am »

A friend of mine owned a Mazda dealership some time ago, and he had a four year old Infiniti Q45 that he'd bought. It was a brand new, four year old car sold by a Nissan/Infiniti dealer for a song. He drove the car for a few months then sold it on his lot as a low mileage used car, but didn't make much money, but didn't lose any either.

I asked him if he'd had any problems like that with Mazda products, and he said once in a while they'd get close to two years old on the higher priced cars like the RX-8, but enough incentive on the price and they'd go. Way back when they had the RWD Serenia, they often blew them out at a loss as they sold so slowly.

About 10 years ago, I took my C-Class in for service and my loaner was an S320SWB that was a couple years old and had about 500km on it. The dealer had an unsold car and used it as a service loaner, and then sold it used.

The Mighty Duck · « **Reply #8 on:** May 28, 2009, 10:32:45 am »

I think someone on this forum bought a brand new but two-year old RX8, in fact. I'd be a little nervous about doing so - it might be unused, but it's certainly not "brand new" and has been sitting for a long time.

As a dealer, I would probably use them as loaners/shuttles, or offer them to top staff as a bonus, depending on the price of the car.

gta_driver · « **Reply #9 on:** May 28, 2009, 12:46:51 pm »

GM had a dealer inventory database, if you knew someone within CHQ with access to it you could query it based on postal code and see what new previous model year stock was remaining and where. People picked up a new "old model year" vehicles dirt cheap. Sometimes these vehicles where up to 3 years old.

y2chuck · « **Reply #10 on:** May 28, 2009, 01:51:12 pm »

Wilson's in guelph has a few new 07 Eclipse models that were never registered. I remember seeing in one of the annual buyer's guides from Wheels (2005 I think?...) that GM sold 3 Firebirds which were canceled in 2002.

johngenx · « **Reply #11 on:** May 28, 2009, 02:21:35 pm »

Good topic for today, as one of my climbing partners just bought a new 2008 HHR for $13,000! I'm not sure what the MSRP on that car is, but $13K seems like an awesome price for a brand new one.

y2chuck · « **Reply #12 on:** May 28, 2009, 02:24:48 pm »

Quote from: johngenx on May 28, 2009, 02:21:35 pm

Good topic for today, as one of my climbing partners just bought a new 2008 HHR for $13,000! I'm not sure what the MSRP on that car is, but $13K seems like an awesome price for a brand new one.

wow, that's a wicked deal! About 20K for the LS and 24K for the LT IIRC

gta_driver · « **Reply #13 on:** May 28, 2009, 02:46:14 pm »

I know a colleague who picked up a left over new '07 Ion sedan for his wife for $8800 earlier this year.

safristi · « **Reply #14 on:** May 28, 2009, 05:37:05 pm »

::...............May the PROTONS be WITH HER...............

stodge · « **Reply #15 on:** May 28, 2009, 07:45:53 pm »

Wouldn't mind picking up a couple of older years models on the cheap myself. A nice 08 Mazda5 would be just luverly.

Leviathan · « **Reply #16 on:** May 28, 2009, 09:36:33 pm »

Quote from: johngenx on May 28, 2009, 02:21:35 pm

Good topic for today, as one of my climbing partners just bought a new 2008 HHR for $13,000! I'm not sure what the MSRP on that car is, but $13K seems like an awesome price for a brand new one.

Can't beat that

dr_spock · « **Reply #17 on:** May 28, 2009, 11:24:25 pm »

Quote from: johngenx on May 28, 2009, 02:21:35 pm

Good topic for today, as one of my climbing partners just bought a new 2008 HHR for $13,000! I'm not sure what the MSRP on that car is, but $13K seems like an awesome price for a brand new one.

Good deal. Any idea of the profit margin the dealer made?

PJungnitsch · « **Reply #18 on:** May 29, 2009, 02:45:36 am »

Just saw this:

Automakers finished 2008 with about 3.1 million units of unsold cars and trucks sitting in dealer lots and holding yards around the country. As of right now, it still has 2.6 million of them left, all 2008 and 2009 models, and aging fast. Deep discounts are inevitable. No surprise, then, that some analysts predict net industry revenue for 2009 will be $80 billion to $100 billion lower than last year.

That's a lot of cars.

http://blogs.motortrend.com/6546161/manufacturing/how-the-world-has-changed/index.html

Squishy · « **Reply #19 on:** May 29, 2009, 05:51:48 am »

A bunch might end up on surviving dealers' lots or competitors' lots with deep discounts. Similar things happened to the Azteks because no one would buy them.

My dad is waiting for the Cobalts to drop to $5000 so he can pick up a cheap MT vehicle to play with. :lol: