What happens when new cars dont sell?

I read the post about dodges being 13k under sticker and had me wondering. What does the dealer/Mfr do with unsold new cars?

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RM v2.0 wrote:

They stay on the sales lot until they do sell. They are called "leftovers". I picked up a brand new 1995 leftover Chevy in March 1996. It was equipped the same as several of the 1996 models there but it was much cheaper.

--
Ken



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And from the dealer's perspective these are the most expensive vehicles on his lot because he's paying interest on them plus in some states also paying taxes on the unsold inventory. These are the ones you can actually buy below the dealer's final cost because he is so extremely anxious to get rid of them. That's not to imply they are necessarily a good value, but you'll generally never get a chance to buy 'em any cheaper.

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NEW cars are a very expensive indulgence....even when they're on closeout. The hit you take when you drive it off the lot is an insane price to pay for new-car smell..

writes:

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Sell them cheap. Which kills the market for used models of the same year. Which makes people reluctant to buy a new car because of depreciation. Which causes cars to sit on the lot unsold. Which causes dealers to sell old inventory cheap. And so on.

But, that lets the rest of us buy a 2 year old car for less than half price.

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In article

You want to see a car literally circle the drain on rapid depreciation, check out the Lincoln Town Car. Beautiful and luxurious, but depreciates over 40% the first 2 years. 50% at 3 years, 60% at 4 years. We sold a burgandy '93 Cartier (highest trim line Lincoln) in 2001 for $7,200. The car was $50,000 new. It had 60k on the clock when we sold it. -- Hooked On Ebonics, Lesson 3: Use the word "disappointment" in a sentence. DISAPPOINTMENT: My parole officer tol me if I miss disappointment they gonna send me back to da big house.

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