What Happens To New Cars That Don't Sell?
Even people who have been in the car business for decades and know how the industry works sometimes marvel at the number of brand-new cars, trucks, and SUVs that sit on a typical new-car dealer's lot. With each one representing $30,000 or more at retail, the typical dealer has a lot of stock on hand — and a big investment in that stock. So it is natural for a consumer to ask the question, "What happens to new cars that don't sell?"
The answer is both simple and peculiar to the auto business, a business unlike any other in the United States. However, in order to understand the simple answer, you’ll need a quick lesson in how the industry works.