What Happens to the Cars That Nobody Wants To Buy From a Dealership?

If you've ever driven by a car dealership, you may have noticed rows and rows of new and shiny looking cars. These vehicles often feature paperwork that notes the details and specs of the automobile, as well as information about the price. And, while many dealerships differ in their layout or exactly how they present these cars to potential shoppers, one thing is for sure: They don't want any cars sitting on the lot for longer than they need to.

That's because unsold cars can take up valuable space on the lot, preventing owners (and their salespeople) from being able to sell more popular models.

So, what happens to unsold cars at dealerships? Keep reading to learn how these cars are moved off of the lot to make room for more popular options.

When cars sit unsold at a dealership, they become a financial drain. That's why many dealers opt to get creative with their stale inventory, looking for new and inventive ways to quickly move it off the lot.

According to JD Power, one of the ways they do this is by marking the cars down to make them seem more appealing to would-be shoppers. Sometimes they'll also offer incentives like servicing bundles or attractive finance options to sweeten the pot.

When that doesn't work, they will sometimes reach out to other dealerships to try and broker a trade, especially on vehicles that may be selling like hotcakes in one area but sitting untouched in another.

After that, they turn to less favorable options, like using the unsold merch to create a fleet of loners or demo cars, which they allow customers to drive while their cars are in the shop or if they need a long-term rental.

As a last resort, some dealerships will actually auction these cars off to the highest bidders, either through public auctions or ones that are geared towards other dealers looking to buy at a steep discount.

While it may seem like cars are a necessity for anyone that lives in an area that doesn't have a robust public transportation system, there are some car makes and models that sit unsold. There are a few reasons why this happens, starting with a lack of popularity. Some cars just don't resonate with buyers, and they continuously pass them over for whatever reason.

Then there are supply and demand issues, where dealers order way too many of one car, which leaves them with overstock.

Sometimes, some cars just aren't priced to sell, and their high costs cause many shoppers to pass them by in favor of more affordable options. Lastly, JD Power says that sometimes, the length of time a car sits unsold on a lot can cause problems. That's because these cars can sometimes sit long enough that a newer model gets released in the meantime, causing the car to become outdated and pretty much ensuring it will remain on the lot until the dealer finds a creative way to move it.