Dealers with 2 year old cars unsold - Chevelle Tech
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post #1 of 45 (permalink) Old Sep 2nd, 19, 11:15 AM Thread Starter
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Dealers with 2 year old cars unsold

I think I see a problem here. What does a dealer do to move a 2 year old "brand new" car in inventory? The depreciation must be a price killer for sure. Will dealers take the "just-in-time" inventory management schemes more seriously? With the 2020 model year about to arrive, those leftover 2018's will be hare to sell at any kind of profit.
Back in 1996 I looked at an unsold 1995 Chevy on a dealer's lot. The "deal" he offered me was so bad that I laughed all the way home. And then some. Never went back to that place. At his price , it might still be there.

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post #2 of 45 (permalink) Old Sep 2nd, 19, 11:35 AM
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Re: Dealers with 2 year old cars unsold

Everything will sell for a price. Supply just has to meet demand. Bring those jeeps to Houston cause they’re everywhere.

I’ll bet you remember around 1973 when Chrysler had a glut of [ugly] huge cars that weren’t selling. A friend’s dad bought a New Plymouth Fury for the price of a VW as I recall.

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post #3 of 45 (permalink) Old Sep 2nd, 19, 11:37 AM
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Re: Dealers with 2 year old cars unsold

When my uncle bought a new 49 Plymouth, it was actually a left over new 48 that the dealer re-titled as a 49. I think he probably got a good deal on it though.

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post #4 of 45 (permalink) Old Sep 2nd, 19, 11:42 AM
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Re: Dealers with 2 year old cars unsold

Sounds like what Ford used to do, and that is crank out production without firm orders.

I remember reading about a new unsold 1969 Charger Daytona that ended up selling in 1972. It was a slight problem for the buyer when the brake calipers seized in 1972 under warranty for a brand new 1969.

Here in Canada they sold the Ford Cortina beyond 1970 (the last year in the U.S.). A new Cortina made it's debut in Europe for 1971 but here in Canada the new Cortinas were identical to the 1970 models. Why? Because Ford "redesignated" the unsold 1970 models as 1971s. There was a class-action lawsuit over that one. The next generation Cortinas made it here for 1972 & 73, 73s even getting the 5-mph front bumpers in Canada that no other Cortinas in the world got up to that point.

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post #5 of 45 (permalink) Old Sep 2nd, 19, 11:48 AM
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Re: Dealers with 2 year old cars unsold

It’s a sign you need to go to another dealer. I ran into that when I was looking for my first new car, only one of the dealers I visited had “new” old cars on their lot. They also had the highest markups and were the least interested in negotiating.

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post #6 of 45 (permalink) Old Sep 2nd, 19, 12:14 PM
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Re: Dealers with 2 year old cars unsold

Quote:
Originally Posted by JWagner View Post
Will dealers take the "just-in-time" inventory management schemes more seriously? With the 2020 model year about to arrive, those leftover 2018's will be hare to sell at any kind of profit.
I forgot I wanted to comment on these points.

On JIT, the dealer financing arrangements and franchise agreements aren’t going to allow that. They want to manufacture vehicles at a steady pace. It would change the risk for the manufacturer to hold inventory.

Same as on JIT, their floor plan costs and sales incentives encourage them to deal. They’re better off selling at no profit than holding. If I was the manufacturer I would be telling them that they weren’t doing their job.
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post #7 of 45 (permalink) Old Sep 2nd, 19, 12:23 PM
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Re: Dealers with 2 year old cars unsold

With the cost of vehicles today it's not hard to believe there are 2018's still on the lots. I was at a dealer the other day and I was talking to the salesman I normally buy from and he had just driven over a Dodge Ram Ext Cab 4x4 and he told me the MSRP was $77k.
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post #8 of 45 (permalink) Old Sep 2nd, 19, 2:49 PM
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Re: Dealers with 2 year old cars unsold

Quote:
Originally Posted by Cam View Post
Sounds like what Ford used to do
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What Ford did in 1940 was call the left over 39's 40 Standards and the new 40's were 40 Deluxes but they were pretty close to being the same, with the exception of the grill, hood, and taillights.
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post #9 of 45 (permalink) Old Sep 2nd, 19, 2:59 PM
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I have purchased my last two dirt bikes and quads as non currents one was fours years old new still in the crate. The best part is they are dirt cheap and you don’t have to the bogus freight and PDI charges. I would do this every time if I could.
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post #10 of 45 (permalink) Old Sep 2nd, 19, 3:03 PM
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Re: Dealers with 2 year old cars unsold

When I worked at a GMC dealer they had a 2000 3/4 pickup reg cab that was over 2 years old. It was kind of an odd ball truck maybe a ordered truck that someone bailed on as it had 5.3 instead of a 6.0, I had never seen one like that. Anyway the manger said we will give you a killer deal on it, "ya, ok", after all was said and done I could have bought a new current model year for less than they wanted for that 2 year old truck. They sold the 2000 at auction for a loss rather than giving me a good deal on it, what a bunch of losers.
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post #11 of 45 (permalink) Old Sep 2nd, 19, 3:51 PM
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Re: Dealers with 2 year old cars unsold

Maybe the reason there are 2 year old new vehicles are around is that the prices are ridiculous? Just a hunch. I’m actually surprised there are not more of them.

Tighten it till it strips and back it off a quarter turn.
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post #12 of 45 (permalink) Old Sep 2nd, 19, 4:46 PM
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Re: Dealers with 2 year old cars unsold

In about May of 2009, I bought a brand new Kia Amanti (their largest sedan at the time). I bought it because of me clearing out my other car projects, and wanted a nice new car for myself at the time. It was stickered at $30,000, with a $5,000 rebate from Kia. I paid exactly $18,000 for it new. Jim Shorkey Kia bought all remaining Amantis from Kia at some great price and moved them out, he was selling them out a handful a day.

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post #13 of 45 (permalink) Old Sep 2nd, 19, 6:21 PM
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I friend of mine from high school, an accountant for one of the big Chevy dealerships in Edmonton. He says that the mark up on most vehicles from the manufacturer is 50-60% of the sticker price. The way the manufacturer to dealer rebates work the more cars they sell the larger the manufacturer rebate to the dealer is. If the dealership only sold one vehicle the price is very close to the MSRP but sell a hundred and the dealer price for all hundred cars is half the cost If they only sold one.

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post #14 of 45 (permalink) Old Sep 2nd, 19, 7:14 PM
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Re: Dealers with 2 year old cars unsold

When we bought my wife's Escape 2 years ago we went in there with the intention of buying a 'demo' with about 14,000 km's on it. We had seen it on the dealers website. The salesman had no interest selling it to me and after some negotiation we walked out with a exact same, brand new one for about $500 more then the best price I could get on the demo. Was a no brainer. New cars were on the way so they had to make the room I guess. They can always peddle the demos to private used car lots so getting rid of new last years new models seemed to be a priority. Thats all I could come up with anyway.

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post #15 of 45 (permalink) Old Sep 2nd, 19, 11:31 PM
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Re: Dealers with 2 year old cars unsold

new cars do not impress me so i could care less if they have new 2,3 or 4 yr old new cars on the lots.
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