Used Cars on Lot that Don’t Sell

[galaxy]

What do dealers (specifically new car dealers) do with used cars that don’t move? Do they have time limits?

I’ve been shopping for car X. Was talking to a guy at a dealer that showed me a car he had that he knew was juuuuuust outside my personal price limit by about $3K to get it OTD. Told him I loved the car, but I gotta stick to my budget. Thus, we’re $3K short and he didn’t take my offer. No harm no fowl.

But, I know the car has been for sale here for at least 45 days.

How long will they let it go? Would they send the car to auction vs passing on a guaranteed sale, even at $3K difference?

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[Interceptor]

A car lot will wholesale a car out for $1000.00 less than they will sell it to you for.
They could not sleep at night if they wholesaled a car to someone that strolled on their lot.
Their happiness strives on how much money they made on the sale of a car. When they wholesale a dud from their lot it is considered a mistake in purchase.
Also each additional time you visit their lot they will pay less attention to you, they realize no money to be made from you, they want you to go away so they can go back to their non stop BS sessions talking about the customers of the day.

 

[LxMike]

When I was shopping for a mustang I had a dealer tell me if car doesn't sell after 90 days they wholesale or send it to auction. I guess it actually depends on the dealer cause I was watching one on car gurus and cg said it had been at dealer for close to a year.

 

[HoosierDaddy]

When I was shopping for a mustang I had a dealer tell me if car doesn't sell after 90 days they wholesale or send it to auction. I guess it actually depends on the dealer cause I was watching one on car gurus and cg said it had been at dealer for close to a year.

My Syclone was on the lot for 11 months. I started negotiating before any were shipped. I offered MSRP but they wouldn't budge off some ridiculous ADM. Then the sales manager decided to corner the market in AZ and bought all the allocations of other dealers. But black and turbocharged were less popular than he thought in Phoenix heat. Months pass and they call and agreed to my offer but I told them that ship had sailed and told them my current offer which they again declined. This happened a few times as multiple Syclones sat on their lot. I stopped by and saw that one I tested almost 11 months before was still there with something like 20 miles on it. I wrote a letter to the GM suggesting we have a birthday party for it in a few weeks and offered to bring the cake. A few days later I drove it away for something like $8k under sticker. Next time I was there for service, the sales manager was gone.

 

[Hack]

What do dealers (specifically new car dealers) do with used cars that don’t move? Do they have time limits?

I’ve been shopping for car X. Was talking to a guy at a dealer that showed me a car he had that he knew was juuuuuust outside my personal price limit by about $3K to get it OTD. Told him I loved the car, but I gotta stick to my budget. Thus, we’re $3K short and he didn’t take my offer. No harm no fowl.

But, I know the car has been for sale here for at least 45 days.

How long will they let it go? Would they send the car to auction vs passing on a guaranteed sale, even at $3K difference?

I think the answer is it depends on the dealer, time of year - and probably the car as well. I bought a used 2011 Mustang GT in the fall of 2013 and a sales person had told me they were going to send it to auction soon. They lowered the price a couple times in the weeks prior. I think they would have had trouble selling it once snow was on the ground. Many people around here won't drive a Mustang GT in the winter. I drove it year round and loved it.

Since then my wife always gives me crap that I love to buy Mustangs in the winter. I do - because prices are low.

 

[dn1984]

45 days is nothing. our cars become "old aged" at 100 days. we will usually send them to the auction at 250 days depending on the car, some go sooner.

 

[galaxy]

45 days is nothing. our cars become "old aged" at 100 days. we will usually send them to the auction at 250 days depending on the car, some go sooner.

So they are likely to risk taking it in the shorts at auction vs selling it to a guaranteed buyer at a break even point (or maybe even slightly below)?

 

[dn1984]

So they are likely to risk taking it in the shorts at auction vs selling it to a guaranteed buyer at a break even point (or maybe even slightly below)?

It's rare that we have a car sit long enough to go to the auction. It's well worth taking the small risk

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