What Happens to New Cars that Never Get Sold ?

What Happens To New Cars That Don't Sell? If you’ve ever driven by a car dealership and seen the rows and rows of brand new cars, you’ve probably wondered what happens to the ones that never get sold.

Millions of cars are produced every year, not every car is sold. What happens to them? They don’t give them away. If the price is reduced too much it reduces the sales volume of the newer more expensive models.

With each vehicle representing $30,000 or more in retail pricing, the typical dealer doesn’t want to keep these vehicles in stock. Brand-new cars, trucks, and SUVs that aren’t sold can’t just sit on the dealer lot forever; their investment in them is too high. It is natural for a consumer to ask the question, so what do they do with all those cars that sit and don’t sell?

0:00 What Happens to New #Cars that Never Get Sold
1:15 what happens to new cars that don't sell
1:39 how the auto industry works
1:50 franchise law vs #Tesla
2:32 unsold or slow-selling cars
3:11 turning the inventory and floorplanning
4:04 how do deals sell unsold cars - deals
4:35 spiffs or special discounts
5:22 incentives and low-interest rates
5:40 loaner car and used cars
6:04 dealer trades and auctions
7:30 manufacturers with leftover cars - car graveyards
9:01 shrinkage
9:49 Bottom line
10:10 best deal on a car, truck, or SUV
10:40 questions and comments

with Lauren Fix, @KarlBrauer, and @JavierMota.

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[seanandthetots]

After being in Automotive sales at multiple large volume dealers for more than 10 years, I can tell you that this was true up until 2020. After the pandemic created inventory shortages there are no leftovers!!! Forget about good deals, most cars sell at MSRP, many for over! Think about it with a 10th of the inventory once held we cannot create the sales volume or even close to that we want to. Unfortunately this video is no longer true or relevant at all in today’s market... there are no leftovers and there are no hard to get rid of vehicles. On top of all that even when new car production did start to pick up last year dealers realized keeping a smaller inventory saves them tens of thousands of dollars a year on their floorplans... making it more unlikely we’ll see car lots flooded with inventory and heavily discounted prices anytime soon!

[orlandomarquez]

So to save 11 minutes of your life:

Unsold cars get shipped off to other countries and sold low or the unsold cars get dismantled/destroyed.

[richardrichard]

I love how they have convinced people that adding a middle man to a transaction is good for the consumer.

[ctg]

Ugh, it makes me crazy to see brand new vehicles just wasting away because it's not in the interest of the owners to sell them for a discount, especially when I have to keep my rusty 26 year old truck going because I cannot afford the outrageous price of something new.

[danielratzlaff]

Bottom line: it's all about GREED! I got tired of being ripped off so I haven't bought ANY vehicles for over the past 20 years. I keep and maintain what I have (have a 1987 Mazda B2200 I've had for 33 years). As long as my vehicles are reliable and dependable I'm happy. Yes, they are old and beat up and my coworkers make fun of me while they drive their new fancy monster trucks. But while they are stressing out about their payments and all the costly maintenance, I'm saving my money, or trying to for retirement, SOMEDAY? Amazing that people are brainwashed into thinking they HAVE to buy a new vehicle every so often. Same with my 2004 Yamaha, some coworkers ride Harleys and tell me to get a "real" motorcycle. Hey, I have nothing against Harleys, it's just that my Yamaha has been so trustworthy I see no need to change. I'm happy, and I'm not going waste my hard earned money!

[donellis]

This is really sad with all these poor people out here wanting to buy a reliable vehicle

[NDoggi]

The only part that sucks about YouTube is everybody beats around the bush for 10 minutes before you get an 30 second answer

[charalson]

I was in the temporary staffing industry and one of my clients was a company that dismantled BRAND NEW CARS - for scraping the parts….for sure one of the strangest accounts I had.

[jonesfactor]

I remember my father going in to the dealer, picking the options and color and waiting several weeks for the car. Now, they just put out millions of cars that aren’t sold. 🤨
I also remember you could get a better deal paying cash instead of financing. The industry is upside down

[courtlaw]

I would recommend that people don't fall in love with any particular car model. Best dealership experience I had was this old guy at a Toyota dealership back in 2006, did not do the whole shady salesmen routine, took me out on the road teaching me how to drive a stick shift that I showed interest in and in the end ending up buying a car they didn't think I would have been interested in. I brought a 2006 scion XA, Best car I ever owned, got rid of it in 2021 and got a Corolla Hybrid which is just awesome. This video is slightly sad to see all these unsold cars sitting around with all these high prices.

[MCTeck]

I bought a new Chevy Colorado 2018. It sat on the lot for a year because it had a manual transmission. That is what I wanted! Got a 5k discount.

[buffalodiesel]

This proves what I have been saying for YEARS.... A franchise dealer's license is " A LICENSE TO STEAL".

[zmanpianoman]

I worked at Ford and was never offered a deal on cemetary cars. This video could of been done in 2 minutes. They would rather have the cars sit and rot before giving the public a shot at buying them.

[answrtek]

In my state a Dealer cannot legally loan a new vehicle to a customer from the service department unless the car is titled to the Dealership and has a state plate. Also Dealer plate cannot legally be loaned out to customers so they can drive the car around, only authorized employees of the Dealership can use Dealer plates. A car is not legally a used vehicle unless it has been titled. If it has not been titled and someone drove it around it will be sold with a portion of the warranty mileage used up on the vehicle.

[j]

So everytime I buy a car for $40, 000, I'm basicly buying 3 cars. WOW!

[alberttray]

I’d love to see a video that explains how forcing me to buy through a middle man (dealer) rather than buy directly from the manufacturer protects me. Please don’t forget to include information about dealer markups.

[thatcarguyUZ]

Manufacturers can't sell cars direct to consumers to "protect" the customer. Protect them from what exactly? Protect them from buying a car without getting the runaround and being screwed by a sleezeball salesman that can't make any decisions unless he goes to "talk to the manager?"

[KeithSudano]

How the hell does it benefit customers to have to go to dealerships??? That is BS!

[kifkroker]

Thx for this! I always wonder but never could find the answer anywhere else! This kind of video is one of many why I love YT!

[erinmiranda]

so true these dealers would rather let these cars rot sit or get sold overseas than give the consumer a better deal.