What Happens To Cars That Don't Get Sold?
Car salesmen are known for their shady and somewhat manipulative tactics to try to get rid of their stock for the highest price, but what happens when they aren’t able to sell everything? Once the dealership buys a car so they can sell it themselves, it is theirs, they can’t just give it back to the manufacturer. There are several ways that dealerships will try to minimize losses when they overestimate public interest in a model.
First, dealerships will trade models if there is one type of car that is selling more in one area than another. For example, a small car might not sell in a rural town very well, whereas a big city might not have enough to supply their demand and so the smaller car is sent to the dealership that can more easily sell it. Another option is to try to sell the car at an auction, which might lower the price than what it was originally priced at. Part of the money from the sale also has to go to the auction house, so this isn’t preferred by dealerships. The unsold car could also be used as a loaned car for people while theirs is being worked on or as an employee vehicle.
People haven’t been buying cars like they used to, so there are thousands of cars that simply can’t be sold at all. These cars are sent to “car parks” where they sit and slowly deteriorate for years. There are thousands of these car parks around the world where thousands upon thousands of cars sit abandoned.
How do you feel about the fact that there is so much waste in car manufacturing? Is there anything manufacturers can do to try to anticipate demand? What would you do if you were in the position of the dealerships?
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