What Happens to New Cars that Never Get Sold ?
Вставка
- Опубліковано 11 лип 2024
- What Happens To New Cars That Don't Sell? If you’ve ever driven by a car dealership and seen the rows and rows of brand new cars, you’ve probably wondered what happens to the ones that never get sold.
Millions of cars are produced every year, not every car is sold. What happens to them? They don’t give them away. If the price is reduced too much it reduces the sales volume of the newer more expensive models.
With each vehicle representing $30,000 or more in retail pricing, the typical dealer doesn’t want to keep these vehicles in stock. Brand-new cars, trucks, and SUVs that aren’t sold can’t just sit on the dealer lot forever; their investment in them is too high. It is natural for a consumer to ask the question, so what do they do with all those cars that sit and don’t sell?
0:00 What Happens to New #Cars that Never Get Sold
1:15 what happens to new cars that don't sell
1:39 how the auto industry works
1:50 franchise law vs #Tesla
2:32 unsold or slow-selling cars
3:11 turning the inventory and floorplanning
4:04 how do deals sell unsold cars - deals
4:35 spiffs or special discounts
5:22 incentives and low-interest rates
5:40 loaner car and used cars
6:04 dealer trades and auctions
7:30 manufacturers with leftover cars - car graveyards
9:01 shrinkage
9:49 Bottom line
10:10 best deal on a car, truck, or SUV
10:40 questions and comments
⬇️. Check out our new podcast on all platforms: Total Car Score www.revolverpodcasts.com/show...
with Lauren Fix, @KarlBrauer, and @JavierMota.
⬇️ Check out our NEW Website CAR COACH REPORTS with more car reviews, expert advice, and Car Smarts: www.CarCoachReports.com in English and Spanish
⬇️ Social media:
Twitter: / laurenfix
Facebook: / lauren.fix.the.car.coach
Instagram: / laurenfix
MeWe: mewe.com/i/laurenfix
CloutHub: clouthub.com/laurenfix
⬇️ My Book: ** Lauren Fix's Guide to Loving Your Car - amzn.to/3ifDi3j
⬇️ Sign Up for Auto Tips, Tricks & Cost Saving Secrets in our Free Monthly Newsletter: bit.ly/3k0P0AS
⬇️. See more Car Coach Reports
Auto News & Car Reviews - www.carcoachreports.com
Breaking News - / laurenfix
Auto Education - carsmarts.com
His Turn - Her Turn™ Car Reviews - histurnherturn.com/
SUPPORT INDEPENDENT CREATORS
The Fix Family has taken generations of passion, pride & automotive expertise to create unique auto products & books that will keep you, your family & cars safer and running better for years to come.
⬇️. Thank you for SUPPORTING US: / carcoachreports
⬇️ Our Gear: kit.co/CarCoachReports/our-st...
Music by subscription: Epidemic Sound
©Automotive Aspects, Inc., 2021. All Rights Reserved. - Авто та транспорт
After being in Automotive sales at multiple large volume dealers for more than 10 years, I can tell you that this was true up until 2020. After the pandemic created inventory shortages there are no leftovers!!! Forget about good deals, most cars sell at MSRP, many for over! Think about it with a 10th of the inventory once held we cannot create the sales volume or even close to that we want to. Unfortunately this video is no longer true or relevant at all in today’s market... there are no leftovers and there are no hard to get rid of vehicles. On top of all that even when new car production did start to pick up last year dealers realized keeping a smaller inventory saves them tens of thousands of dollars a year on their floorplans... making it more unlikely we’ll see car lots flooded with inventory and heavily discounted prices anytime soon!
This video was produced prior to the pandemic. Thanks for putting in your comments
Question: Given that there wasn't a population explosion w/i the last few years, where did all the surplus cars go? Who bought them?
@@elac1256 it's not that there was a population explosion, it's just that they didn't produce many cars, so buyers bought up all the cars that were made and started buying the unsold stock too... Also those COVID payouts & COVID savings increased demand
@@Anti-socialSocialClub I understand that new supply decreased and that gov't 'relief' funds bolstered some demand. However, if we typicially had surpluses to the point that cars were being channeled to rental companies and/or mothballed in the desert, etc., the current 'shortage' seems a bit contrived. Also, I remember seeing the rental companies sell off their fleets; to whom? The car market 'feels' a lot like the domestic housing market and I know a lot about how that 'shortage' involves a lot of funny stuff.
It's a pendulum.
So to save 11 minutes of your life:
Unsold cars get shipped off to other countries and sold low or the unsold cars get dismantled/destroyed.
This comment should be pinned.
It makes a great point but there is more than dismantling and I describe why in the video. Not everyone understands why this is happening even though you understand the reasons.
That 11 minutes was worth it
@@CarCoachReports I'm great full for the cliff notes Orlando Marquez gave, as about half way through the video I realized that none of this info seems really useful.
I think a more beneficial point to make in this video which I'm sure most people would like to know is, are there ways for regular people to some how aquire any of these vehicles.
That's not even what happens. Its more in depth than that. Watch the entire vid before assuming
I love how they have convinced people that adding a middle man to a transaction is good for the consumer.
Yup, dealers are good for consumers like how unions are good for workers.
Right!
@ordinaryhuman5645
Brainwashed much?
Where & when unions have been strong, there has also been a larger middle class.
Another fun fact is that when & where unions have been stronger, non union workers in the same trade enjoy higher wages.
Sure, unions have had their downsides, but the positives that unions have brought to workers more than makes up for the negatives.
My mom still gets 50% of my dead fathers pension. Wtf even gets a pension anymore?
She also benefits from his union health insurance.
These were all things my dad worked for & paid into, but they've paid off big time.
The only people who are anti union are management, owners, and or investors who want to maximize profits by screwing over workers (& brainwashed workers)
The most obvious proof that unions are good for the working class is the fact that both parties are anti union.
Dems claim to be pro union but their policies prove they are not.
Neither party represents the people. Both parties represent wallstreet / big business.
Wallstreet is anti union because they are for maximizing profits which = cheap labor.
Shame on you if you're mgmt treating workers like they're disposable & denying a living wage.
More shame on you if you are a worker who's been brainwashed to cheer on your own enslavement or the enslavement of your fellow americans.
Unions aren't for everyone, but non union workers benefit from the sacrafices made by union workers
Dealers are stealers
They are great for the middle man, they get rich
Ugh, it makes me crazy to see brand new vehicles just wasting away because it's not in the interest of the owners to sell them for a discount, especially when I have to keep my rusty 26 year old truck going because I cannot afford the outrageous price of something new.
I'm so grateful that I recycled all my life 🐑
True, but you can also rebuild that 26 year old truck from bumper to bumper that will last another 26 years for a fraction of the cost of a new truck. Currently in that process with my 25 year old truck.
If enough people like you and me have the same idea and boycott new car dealers for years then maybe they will get the idea or the economy comes to a crash then maybe they will make cars for the people again and not just the elite
Bottom line: it's all about GREED! I got tired of being ripped off so I haven't bought ANY vehicles for over the past 20 years. I keep and maintain what I have (have a 1987 Mazda B2200 I've had for 33 years). As long as my vehicles are reliable and dependable I'm happy. Yes, they are old and beat up and my coworkers make fun of me while they drive their new fancy monster trucks. But while they are stressing out about their payments and all the costly maintenance, I'm saving my money, or trying to for retirement, SOMEDAY? Amazing that people are brainwashed into thinking they HAVE to buy a new vehicle every so often. Same with my 2004 Yamaha, some coworkers ride Harleys and tell me to get a "real" motorcycle. Hey, I have nothing against Harleys, it's just that my Yamaha has been so trustworthy I see no need to change. I'm happy, and I'm not going waste my hard earned money!
I too have a 1987 Mazda B2200 extended cab that I bought in 1997
Raffle them off to the public!
I never bought a new car in my life and never will! I got a 1985 Chevy Blazer for $1500, no computers, no fancy carburetor/exhaust system that makes your car run like sh*, and I can fix it with a dime and a screw driver~😆
2011 Ford mondeo, I love it, never failed me, it will disintegrate around me before I get it rid of it. I joke that the Flinstones car is more modern than mine 😁
the days of trying to compete and impress the lowlife jones is over. i would not spend $5 trying to impress some dirtbag with a nice car.
This is really sad with all these poor people out here wanting to buy a reliable vehicle
America
What a wasteful society we live in!
Well. It is a much better society than the Soviet system where you had to wait for a car that would never be coming.
@@shenghan4897 upwards of 10 yrs.
We are gross
It's called freedom, they can't make you buy them!
@@eddiedonelson823 But the government can force you to bail them out with our taxes...that in the end is not freedom sadly...The last few years we have seen our "freedom" fly out the window at break neck speeds....
get to the point quicker
LOL 😆
No shit
Hurry up damn
Tell us where the point is
Yo! I thought it was just me!
The only part that sucks about UA-cam is everybody beats around the bush for 10 minutes before you get an 30 second answer
This proves what I have been saying for YEARS.... A franchise dealer's license is " A LICENSE TO STEAL".
I said that, not you
@@MyNameIsUnavailable oh no, I thought that I said that! Is there anyone out there that has been keeping track?
@@maryjane9842 no....
No there isnt 😔
You’re all accessories to whatever you’re talking about😎
They go to where all cars go t👀the crushers t👀make more new car's.
I remember my father going in to the dealer, picking the options and color and waiting several weeks for the car. Now, they just put out millions of cars that aren’t sold. 🤨
I also remember you could get a better deal paying cash instead of financing. The industry is upside down
So there is no confusion as she was covering two topics at once. The industry produces millions of cars a year total. The vast majority get sold. She never mentioned a number as to how many go unsold.
Nice pic too, looks like a guy I knew that was dating a horny little Jewish princess.
You can still do that. I custom ordered my last Ford Focus.
Toyota is the only major,that doesn't do it.
Exactly. There is no reason why people couldn't order cars. The auto companies just have try out lots of their cars and people then order the car. No dealers, no excess.
According to the F.I.A. law for the act of buying or selling a new car: When the costumer manages to pay 100% of the car price, without the need for a financial loan... That same costumer is entitled for, a 10% discount, from the original price of the car being bought; that corresponds to the same price attributed to the financial loan way of purchasing, that same car.
Plus, nowadays most car salesman, aren't well-trained for their job. With most of them, being completely ignorant, about the 10% discount predicted by law, for a new car sale, with full payment, on the act of purchasing that same car.
As for the piles of unsold brand-new cars... Ever since the early 2000's; the Auto-Industry started an act of divorce from the reasonability, reality and laws of the real life society. And that can be seen, exactly by looking at the pictures of rows and rows of brand-new resource expensive, car lots; just rotting and getting dust, to the point that it becomes hard to remember which year were those same cars, made.
At least LADA, is doing well. With not having to deal with none of those nonsense.
I was in the temporary staffing industry and one of my clients was a company that dismantled BRAND NEW CARS - for scraping the parts….for sure one of the strangest accounts I had.
Scraping? You don't need to dismantle a car to scrape it.
@@lzcontrol Actually they did - I was in their facility multiple times a week for several years….they sold off pieces to auto body shops and they also broke down the motors/transmissions as well.
I would recommend that people don't fall in love with any particular car model. Best dealership experience I had was this old guy at a Toyota dealership back in 2006, did not do the whole shady salesmen routine, took me out on the road teaching me how to drive a stick shift that I showed interest in and in the end ending up buying a car they didn't think I would have been interested in. I brought a 2006 scion XA, Best car I ever owned, got rid of it in 2021 and got a Corolla Hybrid which is just awesome. This video is slightly sad to see all these unsold cars sitting around with all these high prices.
The Xa is little known jewel.
I worked at Ford and was never offered a deal on cemetary cars. This video could of been done in 2 minutes. They would rather have the cars sit and rot before giving the public a shot at buying them.
Same thing with food. They’d rather throw it in the garbage than give it to people who really need it. We’re such a wasteful society.
We just can't do anything that would negatively affect *future* sales. The economy must churn at all costs.
@@Lotusblume.8 It becomes worse when you find out they actually poison it with bleach to prevent people from getting it out of the trash.
I've seen them crushed. (they saved the tires)
@@Lotusblume.8The dark side of capitalism. Sadly any profit based society will have these problems unless the government steps in to not allow it.
I’d love to see a video that explains how forcing me to buy through a middle man (dealer) rather than buy directly from the manufacturer protects me. Please don’t forget to include information about dealer markups.
I don't think it "protects" you as much as it "protects" the local franchise owner. The law on the franchise operations does prevent a car manufacturer from offering or selling a vehicle directly to the customer, which no doubt, is not efficient nor is it to the advantage of the customer. This is what we are stuck with but I think this will be changing over the next few years.
So Tesla 3s cost 10k now? No dealers, just demo showrooms and "factory" service centers. That repair center is a bargain too. What, poor service, stalling, overpriced labor, rude people with tablet computers that don't know what they're doing.....I'll just go to the other one...oh wait.
@@STho205 You always have the option to choose a different manufacturer. And from what I can tell you will pay the MSRP for the vehicle. I believe if you read up you will find that Ford (The manufacturer) if working pretty hard try to stop the dealers (who the law forces you to buy from) from tacking on a huge dealer mark up on the new Ford lightning. Personally, I’d like the option to order straight from the manufacturer, and not have the government telling me who I can and can’t buy from
@@alberttray will you. Will you.
Take a look at all the 2011 to 2018 small ICE sedans...aren't they the same car...that you can barely tell apart...just copycat appliances. Why would they all be the same...nearly the same body...nearly the same powerplants....nearly the same prices.
It is a sham...more and more there's one car company
I’ve always wondered this
I bought a new Chevy Colorado 2018. It sat on the lot for a year because it had a manual transmission. That is what I wanted! Got a 5k discount.
In my state a Dealer cannot legally loan a new vehicle to a customer from the service department unless the car is titled to the Dealership and has a state plate. Also Dealer plate cannot legally be loaned out to customers so they can drive the car around, only authorized employees of the Dealership can use Dealer plates. A car is not legally a used vehicle unless it has been titled. If it has not been titled and someone drove it around it will be sold with a portion of the warranty mileage used up on the vehicle.
Manufacturers can't sell cars direct to consumers to "protect" the customer. Protect them from what exactly? Protect them from buying a car without getting the runaround and being screwed by a sleezeball salesman that can't make any decisions unless he goes to "talk to the manager?"
I know, right?
@Geof Toner ironically EVs becoming more popular would drive the price of combustion engines down. Which will then make traditional vehicles more affordable. Equalizing the market. Hybrids will win in the end.
You seem to be living in pre-Internet days where people couldn’t get much information about car prices. Currently, the buyer has the advantage of the Internet to do ample research to get a much better deal. The profit margin for dealers now is razor thin.
@@Kaniela-xq8vl You can go in there armed with all the information you want. You can negotiate a fair and reasonable deal. But the dealership is going to run you through the wringer and stonewall you every step of the way. They are all a bunch of thieves. I used to work in the service department of several dealerships before I left the industry and became an electrical propulsion specialist on rail vehicles. I think we would be much better off being able to buy direct from thr manufacturer online or through a manufacturer owned sales store. Also, as for "razor thin margins?" I have never seen a poor dealership owner or general manager. They are crooks.
@@thatcarguy1UZ Thank you for your response. I am impressed that you were able to switch to such an interesting career. Admittedly, I have never worked in that industry, but I have dear and close friends who have worked recently there. Maybe they are the honest ones, but they have a bit different story to tell. I was just going off what they were saying. Anyway… Peace! 😊
And yet that doesn't stop some dealers from being lying, B.S. artists.
*most
@@AlmightyEvil1 72 years never seen one that wasn't at least to some degree.... some are the worst.
How the hell does it benefit customers to have to go to dealerships??? That is BS!
It doesn't, but it does add jobs.
Basically dealers would be the maker's stores, nothing would change no job would be extinguished.
I worked at a few dealers that had a few vehicles hanging around for several years, often they were new vehicles that had issues or those that were missing parts. I worked at one that was closing up, they had 20 or so like this on the back row. I was able to buy a few for not much more than scrap weight prices because they were missing their transmissions and some interior parts here and there.
so true these dealers would rather let these cars rot sit or get sold overseas than give the consumer a better deal.
They have to, or everybody would wait for the cars to get old to buy and the dealer would go out of business.
Unsold cars sometimes go into the rental fleet at the dealership or the dealer/owner ends up selling them to a relative/family member at a low cost
Yeah.. I was surprised that she didn't mention *at all,* fleet sales. I think that Ford did that in the .. 80s / 90s, with the Taurus? To get it to #1 on the car sales report.
@@M0viLover because she's uninformed.
Hi Lauren, I spent 20 + years in the UK motor trade and enjoy your channel. I'm now retired and Living in Switzerland. You missed one of big way that the manufacturers move excess metal is to sell a block of cars to Rental fleets, with the car used for 3 months or so and returned to the ,manufacturer. in a fixed time limit an mileage limit, this creating a s steady supply of nearly new cars which are sold at Auction. these cars are still under full guarantee and are bought at 3 months old, making good, nearly new stock for non franchised outlets
, with the warranty covered by the manufacturer and a huge number of locations. If i had a dollar or a pound for every one of these cars i would be retired in Switzerland.....oh wait :-)
Thank you for adding your comments. Good perspective and info
Thx for this! I always wonder but never could find the answer anywhere else! This kind of video is one of many why I love YT!
I was looking for a used Miata a couple of years ago, and I found a 2018 that was a bit more expensive than I wanted to pay. I kept an eye on the car for two months, and with 87 days on the lot, I negotiated one hell of a deal. When they wanted to send me to finance, I simply wrote out a check.
Two years later, the car is still worth more than I paid, and I absolutely love driving it.
That's the whole key of negotiating a car deal. I laugh at the commercials that
feature on line car deals. You can't look those crooks in the eye, and swing the
deal in your favor. Some love the battle of working that price down. And when
you have cash on the barrel, you can work those clowns to a suitable price!
They want that car off the lot, so they have room for the new models coming in.
Yeah, you make em an offer they can't refuse! lol!!
I did that too and when the deal was made I said I need to call my wife .....pretended she insisted on paying cash and he exploded. He got over himself and I paid cash and negotiated a better price that way.
I bought my current car in 2011. It was a leftover 2010 that the dealer had on the lot for almost a year. It was an unpopular model of an unpopular brand (Mitsubishi Lancer Sportback GTS). Still, it was nice looking and had a very long warranty (5/60K and 10/100K). I got it for $4,000 to $5,500 less than a comparable Corolla, Civic or Mazda 3. Its been totally reliable these almost ten years, still looks great because its garaged and is such a rare model no one knows how old it really is. So yeah, such a good experience buying a leftover model I'll definitely consider it again when the time comes.
That is awesome. Thank you for sharing your story, proving you have Car Smarts 👍
As long smooth drive..not needed to be so fancy. Its only for people just to show off the brand.
@@merc340sr my Mitsubishi was junk. I would not take one if you gave it to me. They earned their reputation. They build junk and try to sell about $300 less than a quality Honda or Toyota. I don't know anybody who ever bought 2 of them. Save $300 up front, then spend another $5,000 in repairs. No thank you.
@@FJBandtherest Oops, sorry to hear that...
I'd like to find a 2019 or 2020 brand new Tundra
And as this problem grew worse and worse, it is part of the reason car prices on have gone completely ridiculous,
because they're always chasing the money they've lost.
It's amazing no one has figured out how to solve this problem
It could be solved with some a10s.
The big 3 work together with the politicians they buy to screw us.
Instead of competing against each other to make the best vehicles at an affordable price,
They work with each other & compete to make the cheapest junk at the highest price they can get away with.
& when the price is too high for the junk to sell, they sell it to a foriegn market at a loss or scrap it at a bigger loss so they can keep on gouging the American consumer forcing more pricy junk on us.
It's a drag our economy.
A zit on our azz they are
Uh ,. no. It is because of DOT regulations. ABS, air bags, rear cameras / touch screen controls, stability control, etc.
@@M0viLoverSo without DOT regulations we've be Flinstone style cars?/s
@@focusedeye Well .. no: seatbelts, airbags, ABS braking systems, rear cameras, shatter-proof windshields, etc.
Thank you for answering that question. I’ve always wondered about that and suspected that they do indeed throw them out rather than sell them at a deep discount. So wasteful
Yep.
They'd rather force us to pay more & more for junkier & junkier.
Then when they fail for not providing consumers with a good product at a fair price, they get bailed out by the consumers they are screwing over!
I was very shocked when they announced that there are more cars on earth now than people!...... Holy 😲
admit it you didn't even believe it was possible. get used to it. the world has a lot more resources than george soros wants you to believe it does. they just want to keep it all to themselves and scare you with global warming.
Mmhhh
Last two "new cars" I bought were the oldest on the lot. For each car, I paid about $200 over what the dealer actually paid for the car. In both cases I saved about $4000 off the MSRP.
Of course, that was pre-pandemic. Now such deals don't exist. Maybe again in a few years but not now 😢
The plandemic was indeed an IQ test...Both cognitive and emotional. The welfare of humanity is always the alibi of tyrants. I would rather perish on my feet, then survive on my knees...
@Lauren "what the dealer actually paid for the car"- The dealer gets incentives and blowbacks at the end of the year (or quarter) that you won't see. IMHO you don't know what the dealer paid unless you are the dealer.
Dealers get HoldBack which covers advertising, interest and marketing. You can get the information on what the dealer paid on websites like edmunds.com
I bought a new 1 year Lincoln nautilus that had been on their lot for over 6 months. I offered a price and told them when they meet that price I would buy and I also every time they contacted me on the vehicle I reduced my offer by 250.00 dollars, they called me every month and I lowered it my offer and after me lowering my offer by 750.00 they took my offer and I got a 1 year old car way low and still with a 4 year warranty bumper to bumper. I’m an asshole when buying a new car. And yes I know about the floor planning a the cost the dealers have to pay.
We ran a search warrant on a dealer who was taking customer rebates for himself back in the early nineties (not even telling them about it and forging the customer’s signatures). As part of that warrant, we seized the dealer files on all their sold cars, looking for more instances of the rebate scam. I don’t remember the actual numbers, but I do remember all of us being shocked at how much profit a dealer made on car sales and that “dealer cost” was not readily apparent without a lot of calculator work.
Great show- you present and explain very well!! Thank you
I think we should help out the needy in our country and donate some of these cars to families in need.
I always bought a returned leased car, which were usually 3 years old. Because it was a leased car, I knew that it had been well maintained. The mileage would be a little bit high, but that was okay because I wasn't going to put that much mileage on it. I currently have a 2011 Cruze LTZ that I purchased in 2014 and the mileage is still under 100K miles. I have never missed an oil change and take care of any problems as soon as they arise. If your car is important to you, you have to take care of it in order to make it last. I love my Cruze and am grateful to have it.
Enjoy the coolant hose leak that will happen enjoy the windshield wiper arm breaking off because it's made poorly and cheaply.. if you have a automatic cruze have fun replacing the transmission. Imo for the price of a cruze you could of gotten a more reliable less maintenance cost from a Toyota or Honda...
Also 100k miles in my eyes is still low mileage.. cars approaching 180k+ to me is considered high mileage..
This is astounding. I always figure that for the right price, every car finds a buyer.
Problem is many dealer's don't want to lose their heavy stipend ... they have become accustomed to ripping off the consumer that saving money for you becomes second nature to their income and pockets.
You are vastly more correct than the one who made this video.
The key word is "right" price.
I'm from Trinidad 🇹🇹 which is a pretty small Island. I'm a new subscriber and it's very informative. Thanks for the updates ...
So everytime I buy a car for $40,000, I'm basicly buying 3 cars. WOW!
I learned never to go to a dealer on a Friday after 5pm. Go on a Tuesday after lunch time. If they say finance guy is off today but returns on a Friday. LEAVE. And never go on an empty stomach to a dealer. If they asked if you had lunch? LEAVE. It's a trick. A buyer should have the opportunity to buy direct from the manufacturer.
I can confirm that unsold cars are exported to other markets. I live in the Caribbean and it was fairly common to find once unsold cars from other countries, making their way here. These included Rovers, Opels, Protons, Renaults, Toyotas and Mazdas. Typically the cars were about 2 years old by time they got here, and were sold as brand new. I think the two worst cases of it was a batch of Toyotas which were 5 years old (confirmed by the date on the seatbelts), and more or less all Renaults sold here in the late 90s. They were only 2-3 years old, but they were all from a breezy sea port yard, and thus endured years of sea blast. The weatherstrips and other rubber fittings were dry rotting within a year or two of ownership, and most of the bodies corroded from the inside-out. Needless to say the Renault dealer went belly-up by the mid 2000s.
I owned a Renault many years ago. I am still mad at France. LOL
Manufacturers can't even manage to park their cars properly. Sad :(
Thanks . Makes sense
So basically they ripped you off.
That you said dealers are there to protect the consumer is where you lost all credibility lady.
Ya those laws need to go away
Lol ya I just heard that and came to the comments to say the same thing
Great info, thx. I take strong exception to your statement regarding the purpose of the laws preventing direct sales. Such laws are protectionism for dealers and ultimately drive up cost to the consumer and waste for the industry.
I have a beautiful 1970 Chevrolet Monte Carlo that I bought in 1980; I hope to keep it for 20 or 30 more years so I don't have to worry about buying a new car or another used one. . .
I've worked at 3 different car dealerships in 21 years. I was a sales manager at each. Our dealership either made them into Demos, or Service loaners. One time we sold 6 of them to a local rental car company, at the end of the model year. Problem solved. It was usually Mitsubishi, Cadillac or Lincoln that had these problems. I worked at Honda, Toyota and Hyundai. Never had nothing in stock for over 200 days. Anything over 90 days is old. 120 days is a problem, and 180 days is alarming. I once knew a Mitsubishi dealer who had a SUV with every option on their lot for 400 days. Yes! Over a year. it was loaned out for service customers, & employees and depreciated for 3 years. Then sold to an employee for cost. They probably lost about $5,000 in those 4 years. But that was better than losing $5k in 1 year. I never knew about the manufacturer car graveyard. That sucks.
Mitsubishi sucks, all their engines are bad!
Parasites. One day all this theft of human energy will be over.
Yep true mitsu engines ain’t durable
I think very few cars end up like that but some cars do end up flooded and hail damaged which might. Otherwise people would steal them from those locations easy, and action movies would be writen about this crime, which isn't happening.
@@ednajones2342used to be good.
They ask way too much for any vehicle! Period! What a waste of money
I was homeless, got into drug's went to prison and then I got to know Jesus and he changed my life...Heaven came through for me in my finances too, getting $36,000 in 2months . I can support God's work and give back to my community. God is absolutely more than enough! Now I have a new identity and a child of God.
Hello how do you make such monthly ?? I'm a born Christian and sometimes I feel so down of myself because of low finance but I still believe in God...
What a testimony!!! 🙏🙏🙏I'm genuinely curious to know how you earn that much monthly.
I work at a restaurant here in Houston Texas. Things have been really difficult as I'm a single mom and trying my best to pay bills and take care of my daughters..
I know this lady just mentioned here . She's really good with and on her job. She's helped a couple of families and individuals' finances.
@@Kellymccormack534 YES!!! That's exactly her name( Mrs Claire Morin) so many people have recommended highly about her I'm huge beneficiary of her platform from Brisbane Australia 🇦🇺.
This is actually very disheartening to me to know that a car of preference is sitting somewhere mothballed possibly rusting out with zero miles on it. 😢 😢
Planed obsolescence. Wastemakers.
@@patwxdaddy
Think about it, that car or truck didn't sell because something about it made it unattractive to prospective buyers. The color was " wrong ", the options mix was wrong, or maybe the styling was a turnoff. Not to mention some cars can develop a reputation for being extremely unreliable early in their production lives. I bought a 82 Pontiac that was most of the above things EXCEPT for color. I got it very late in the model year after it had sat on a dealer's lot for months.
If a car is unpopular, why would anyone buy a raffle ticket hoping to win a car they wouldn't normally want to buy?
Unfortunately, this is the world that we are living at.
@@howardkerr8174 maybe someone would want that "unwanted vehicle" because they are very poor, with a kid, in the winter, sitting at a metro station. I'd damn near drive anything at that point. (Can't drive a manual)
In a country where I work full time but live in my car woth 240k miles on it that can't pass inspection and I can't afford to fix it to drive it legally, all while my job depends upon my license. Meanwhile thousands of cars have to sit so a profit thi g can be good. Apparently if this is how your industry works then the automotive industry is a failure amd a problem for everybody. Oh yeah a work truck costs 60k, a price a house should cost. We should boycott this industry
back in 1996 I got into a car auction as a "driver" with a guy that owned a tiny car lot . When I seen With my own eyes how cheap those new and used vehicles were selling it made me never ever buy a car in my life from any car lot, ever ....that 30k brand new car , no no try 3k, i drive the car back to buy here pay here car lot we sell it that week for 3k down and they drive it away for 200 a week to people with horrible credit. they make the payments for a year, we repo the car and almost immediately sell it for 5k cash, yep I'll never buy from a dealer . it's not that there are good and dealers , it's that the entire system is rigged to rape the average Joe .
Soo should I buy from an auction or where?
Where should we buy a car then? Any suggestions? Should we get it from a private seller?
Teach us please. I'm young and inexperienced currently paying 320 a month on my charger....
So if the average Joe doesn't make the payment what do you think should happen to the car?
It's called a business a business is to make money
I don’t know about elsewhere but a local Ford dealer had a 2014 Mustang that he refused to discount when the new design came out in 2015. It sat there for 2 years at full price before it disappeared one day. I also think that a lot of unsold cars get picked up by rental car companies.
Thanks Lauren for that great info.
Its silly that they dont just tap into the unsold cars inventory even when there was a "new car shortage"
because the shortage was a manufactured scam
cause they need to hose you that extra 10,000 for the vehicle "shortage".....
'
Yes, I always wondered is very same question whenever I drive past dealerships and you see hundreds of cars just sitting there. I always used to say in my head “what happens to these cars when no one buys them?!?” This whole car thing is stupid. Cars should be made every five years, not every single year after year that’s ridiculous. Just like cell phones..they should make cell phones every five years.
That's a good idea! They should stop flooding the market with things we don't need. But they only care about making money, of course.
at least !!!!!!!!!!!!!!! same with computers !!!
Thanks for all the information!
It be nice if there was a way to filter all dealership's inventory of new current year vehicles by what has sat on the lot the longest. Then armed with all the insider information, I could go to the dealership with the worst selling vehicle at the end of the month, find that specific car, and hash out an amazing deal. It would be like knowing which house has sat on the market the longest and trying to talk the seller down to an amazing price. If anyone knows how to get the same data for cars, then let me know.
It is astounding how many new cars sit in car graveyards around the world. Way more than the average person would imagine.
This video made me realize how wasteful the industry is a we as consumer are just a pawn in the game. How do we stop this from happening? If we all stop buying new cars, then people loose jobs and companies go out of business. I guess that's the only way. Let's all demand that these companies change or refuse buying from them.
Why not open the car graveyard to the public so they take what they want if they don't have money to buy a new model? Not everyone wants a new model.
I wish that would happen!
@@KarlaBedminister that would be a dream come true. I can't afford a new one. I get 823$ a month from the government and it is not enough!
I was thinking the same thing and sadly it's not just the auto industry. I've seen videos where huge amounts of electronics and other consumer goods that don't sell eventually end up in huge landfills all over the world. That's capitalism for you, extremely wasteful.
You can always make your own car.
Thanks for a very interesting video. I didn’t know this.
Great video!! I learned a lot from your discussion. I have to think a bit differently when buying my next vehicle. 👍👍👍👍
Lauren, I always enjoyed your Car Reviews. As I watch this, and seeing Car Graveyards all over this land, I often thought - What happens to all these cars/ Trucks? Serves to prove what a Waste of Resources !! Not only cars, but major appliances, stereo equipment, etc. What The hell is done with all this Stuff!!. I think it is a simple way to keep people employed, just pumping out new products to replace the "older" ones. It's all part of the Throw Away Society that has been created. For example: I still have my Parents' GE small oscillating table fan up in my attack. Purchased when my parents came to this Country in 1951 via Ellis Island in NY. My Mother was pregnant with me (71 years now). That Fan Still works!!! A little rusty, but works, quietly and easily.
What about the perishable fruits, meats and fishes in groceries? Some must be lost.
Hello Lauren.. I have heard of some of these thing before, but not is such a clear and concise manner. You have given new meaning to "kicking the tires"
First time watching your videos. Just subscribed
Awesome! Thank you!
Thank you for this video.
Instead of going to a grave site, Wouldn’t it be more logical to give the car back to manufacture to disassemble the car and recycle the metal?
I agree with your perspective, however, from an accounting stand point these have already been written of the books, It would cost man power and more money to disassemble and recycle these cars. It’s all about the bottom lines as there are investors (stock holders) that want the biggest profit possible. I know it’s totally crazy! From a cost perspective, its less expensive to let them rot.
Not a lot of metal in cars these days. It would be nice if regular Joe could go and get a real affordable vehicle, Its a sham industry.
@@patwxdaddy I was thinking they could finance them at basement prices for low income citizens. If you're asking for the payment of a cellphone bill every month, I think most can afford it. the cars weren't gonna sell anyway so get it how you can even if it's bits and pieces at a time. But raffling them off doesn't seem like a bad idea either. Just don't like seeing good useful cars going to waste
Donate to bon profit like wherl for hope
Great value in this video (and all your others!) Questions answered, no bs. Thank you for what you're doing.
Thank you very much!
My local deales are known to strip some unsold cars for parts for repair work. Rather than discounting them and taking a loss, they make most of their profits repairing cars. Cars are almost always worth more in parts
Cars are X-almost-X *always* worth more in parts' FTFY.
In the old day, the unsold vehicle were put in auction as a fire sale. I remember, I brought a imports car brand (Volvo) in 1985 that was not sold in 1984 from Canada for 1.6K from original retail of 2.6K .
Wonder how things would be different if they only made new models every 2 to 5 years…?
Be a boring world. How about only. Making what the demand is for less waste more profit employees retain time. Jobs we are wastefull we use to rule export now theres not as much as we import we need to go. Dutch
Kind of sneaky how she says car manufacturers cannot sell directly to consumers, then in a fast matter of casual way says,
"...to protect you as the consumer instead of selling directly like you might see from Tesla they have to go through a dealer structure franchise..."
YES!! In fact Tesla is the only direct to consumer car manufacturer, I never heard the law she mentions, and I never heard it enforced or be mandatory, OR THE OLD CAR MANUFACTURERS WOULD HAVE STOPPED OR SUED TESLA FROM DOING IT... they haven't sued, and in fact Tesla has surpassed them in all aspects of the business, and has gone further in customer satisfaction and now even insurance depending on how well you drive.
She also said even Tesla can’t sell all their cars. Truth is Tesla can’t make them fast enough.
@@bekind9668
That's right... the wait time is over one year. Pay now and get your Tesla in a year or more.
And even with the price hikes the adoption rate is incredible; GM sold under fifty cars and they call it a leader in the EV market.
I can't wait until all the other ICE companies give up and sell to Elon or adopt all its patents and the invention innovation rate gets even faster.
@@bekind9668
And also, even the cars that they used for experimenting and getting the line properly built and ready have gotten approval to get sold.
Nice presentation. Clear concise and to the point!
Thank you for great content. Your very knowledgeable and well spoken. What car do you drive?
Sold or otherwise was in the new and used car business for over 30 years.
I do not comment on these types of expose videos. That said this was hands down the most honest and informative one I have seen to date. Loaded with correct and informative tips. Valuable information put into terms that someone who is not in the field can understand and make use of. Great job.
If you paid attention to what was said and follow her tips you can and will save potentially $thousands even on used cars.
I did not catch a single piece of misinformation, of other wise made up trash in the entire piece. Great job keep up the outstanding work. Thank You.
I worked at a huge dealer and we would lease the ones that didn't sell to customers then get it back 3 years later and sell or auction the vehicle for a profit... it was a win win win 🏆
Not for the customer it wasn't!
@@citizenblue the customer always enjoyed the vehicle but at the cost of there funds.
Leasing is a BIG RIP-OFF!!!
@@marythurman278 lots of people love to lease because it gives them peace of mind that the vehicle is reliable and they will be taken care of...
@@marythurman278 imagine yourself rolling down the road surrounded by fine leathers and custom wood trim luxury and latest state of the art electronics in a brand new 2022 Kia lease~
Wow! That was amazing insight.
Absolutely excellent, informative, extremely helpful.
This year (2022) the VW dealer in Guatemala was selling a "special lot from the manufacturer" of Passats at US$20k (relatively cheap for our country) Turns out they were new 2016 models. The same has happened with Fiats 500 🤔
Thanks for sharing that info.
Wow
My 2020 Forte GT Manual was built in Oct of 2019 and I bought it in June of 2020. I got a huge discount on it. It was in Las Vegas, I live in LA. Flew to LV and drove it back.
You have Car Smarts - great deal!
That is worth the flight. The little Forte's are decent cars. My Dad's wife drives one. And you still get the best power train warranty in the automotive industry. Great job 👍.
Anthony Thomas - Wow! It must have been worth the trip.
Very interesting thanks...
That's horrible! There's people out there who are struggling and wouldn't mind taking any one of those cars from the graveyard at cost or with a discount instead of them just sitting there to rust!
The first dealership I worked at, back in 2001, was a Hyundai/Jeep/Chrysler marque. There was a Hyundai, XG300 that had been sitting on the lot for around 2 years. I had a couple that I found in the service department. (they ended up being a frequent flyer couple) The husband started walking around the aged unit and asking about getting a great deal on it since it was still there. We ended up giving well over $10k off of that car, just to get rid of it. That is the Only time I have ever seen that much of a discount. But to be fair, this car was here when the new management team came on-board, and to be honest, this is one reason they were brought over form the Toyota store that the owner had right next door.
Wow .. that was informative.
disgusting just like stores that throw out frozen pizza when it hits their expiration date instead of cutting the price 3 months before the expiration date.
Thanks for the info. Unfortunately, this is a history lesson. I don't ever see manufacturers pumping out cars to excess.. I see building to a sweet spot where demand will always be small and MSRP and higher will be the norm. Why build 5 cars to wheel and deal on when you can get the same profit on just 1? Also, I see ordering cars to become the norm and dealerships only being a distribution and maintenance center
Here is another fun fact:
Dealers make MORE MONEY on used vehicles than new ones.
Much of the time they are limited by the manufacturers just how much they can be marked up and sold for.
On a used car , they can sell it for as much as they can get.
Fact. I just traded in a 2019 GMC Acadia, the dealership had it listed on their website by the next day for more than I originally purchased it for.
I believe that. Minimal supply of used cars, prices are up 30%
@@rickwheeler5496 bahahaha!
As they should. Capitalism,baby! I see nothing wrong with asking
@@rickwheeler5496 yeah but all the new cars seem to go for at least 35K. I make six figures and refuse to buy a new car for over 30k, prices are ridiculous. I'll just keep fixing my 2007 Ridgeline.
That must be why the dealers here locally only add 5 to 40,000.00 to the msrp on the Corvettes...............
Glad this was the first video of yours I watched. Now I won't waste my time watching any others.
Hello I stumbled to your channel and subscribed. 😊
I used to sell Dodge, BMW and Suzuki. It was 1992 and we had a couple 1991 dodge trucks on the lot. We needed to get those two trucks sold or the dealership would have to start paying flooring costs. A mechanic from the Ford dealership nearby came and said he wanted to buy one of those dodge trucks at $500 below dealer's invoice price. The salesman tried to tell him we couldn't do that or we wouldn't make any profit. The mechanic told him not to hand him that. He knew good and well that the dealer's invoice they'd show him was not the actual dealer's invoice. The dealer's invoice shown to the customers has a markup in each of the line items listed to cushion their profit margins. Also that MSRP Addendum sticker is just a phony markup they add to cushion the price for the salesman to work with. That mechanic got that truck for $500 below dealer's invoice price. It also says something that a Ford Mechanic was looking to buy a dodge truck. I don't sell cars anymore, that was a short lived profession but I own a dodge truck that still runs good even though it's 24 years old.
I can see why you were not in the business very long......opps
@@jackjohnsen8506 No, the Sales Manager would tell us we needed about an inch of larceny in our blood if we're going to make it in the business. I'd lose my enthusiasm with a customer after I'd work out the details for monthly payment and down payment, everything done correctly and the Sales Manager wants to me to pull some BS to get more down payment out of them.
@@robertkarp2070 I was in the car business for twenty years, and in two years went from retail sales to Fleet, manager, and retail salesman is not really in the car business, as they take unempoloyed people like you, and use them Like tiolet paper. I was In top 4% of Ford sales for 12 years, and never lied tro one single person as It was not needed...opps
I bought my 1995 mustang for about $4000 under MSRP. It was already about 8 months into the 1006 model year and this 95 Mustang was the only 95 model left on the lot. They had made several upgrades to it with a top of the line sound system, an upgrade to the seating package with the super rare Red on Red interior, added fog lights, and it was already fire engine red. At the time I had been looking at Saturns and the Dodge Neon. It was a Sunday and I was driving all around town to just check out inventory without being bothered by sales people as dealers are closed on Sunday in my state. As I pulled into the lot she was sitting there in front of the building in the outside showcase area and I slammed on the breaks of my Hyundai Excel. I couldnt believe the price on the sticker because it was basically right in the middle of the prices of the Saturn and Neon. Well it was a no brainer. I went back the next day and bought it. Not only did they give me an extra $1000 below what the window price was, they also gave me the extended warranty I insisted on for no cost. All in all, it was a great way to buy a car.
Those kind of deals don't happen anymore. They want you to take the hardest screwing possible nowadays and then you get a another side screwing at the courthouse (taxes) along with a payment is what most mortgages used to be (and mine still is). This is why I continue to drive a 2004 Honda with 173K miles on her. I refuse to bow down to this utterly preposterous price gouging on vehicles!!
I didn't know car dealers have time machines, 1006 wow neat-oh!
@@reesedaniel5835late stage capitalism is the stage of hyper greed which leads to societal collapse
it can happen .....................
Excellent information!!!
Interesting info. Thanks, coach.
Wonderful presentation. I bought a 2019 Lincoln MKT crossover with 8k for 31k. Fully loaded with EcoBoost 365 hp. Was a dealer demo sold by a Massachusetts dealer to a NY dealer. 57k MSRP! Excellent value..
Wow great deal!! Well played! 👏
I’m
Wondering do
You pay the delivery/freight/ PDI ?
Same! we got our Lincoln and its fantastic! we got it from a smaller lincoln dealer and got the older model and we got an amazing price and its such a nice luxury car
I have been buying slightly used vehicles all my life. I do the research . Im a woman so they automatically think I don't know anything. So I'll play with them for a while. Are usually get at least a $10,000 off the original price. My last car I bought was a Hyundai Genesis 2010 GT 2.0 turbo. I test drove it and a year and a half later I went back to see if it was still there. It was. I got exactly The price I wanted it for. Sometimes it pays a little bit just to wait a while and then get bargaining. It can be really fun getting a kick ass deal. Like she said They would rather sell it as a loss then not sell it at all. Also when I want to get a different car I don't trade The one I have in. I sell my car privately. I get more money this way. I also keep my cars in extremely good condition and keep all receipts and any info that will help you sell the car. It might take a little longer but you will get it sold. Good luck. PS Some dealerships Will even fly you to their lot and the flight will not cost you anything as long as you buy a car from them.
This is so timely. My car was totaled & I need a new vehicle. I need to quickly figure this out.
If you know how to trade in your vehicle properly, it can be beneficial. As you will pay taxes on the money you make selling it. However, you do not pay taxes on it when you trade it in. It can be used to negotiate the price of the new vehicle down therefore paying less taxes x2. You want to walk in though with them thinking that you're not going to have a trade in to try to get the best deal for the new vehicle as well as for your old one.
They get taken from the lots leased for storage to the crusher in Jacksonville Florida, here in Georgia east of Brunswick. Local truckers haul them from port to storage to crush!
Times have changed considerably since this was made. Many dealers have low new inventory and are unwilling to drop price. Even if it sits for several months.
True this was filmed in 2019
The franchise law is to protect the dealership who up the price.
A Car dealership in the Seattle area in 1990, had full page ads in the local newspaper posting autos at well below market value. These cars had the VIN posted and only those few could be had at that ridiculously low price. I was lucky enough to buy one after the original buyer’s financing fell through. It was a 1990 Ford Ranger work truck for $6,800 plus tax delivery and prep.
Good informative video, thank you. God bless you.❤️
THANK YOU! I didn't even realize there were "unsold" cars. It's too bad they ream you mercilessly when you go to order a car the way you want it.
I went to order a Vette once. An hour and a half later of choosing options, I had the exact duplicate of one on the lot, except it was a different shade of blue. That window ticket was $67k and my order would have been $84k. If they don't want unsold cars, why don't they just REDUCE the price of a custom order?
I wound up buying a Levi Gremlin on what I thought was a really good deal, and will never buy another new car.
I wondered what happened to all the Chryslers, Oldsmobiles, & Buicks that most people know better than to buy.
You seem to have forgot the Fords.
Buicks are good car. In early 1980's Olds had problems, but they were fine by late 80 and 90's.
I predict that dealers will be service centres and the business of selling vehicles will be dome by the manufacture. Dealers will fight this due to their franchise licence but many will take a buyout. The dealers are looking greedy these days because they have added a surcharge to the recommended dealer cost. Also they will add mandatory options like undercoating, fabric protection as well as paint protection, all these option can be completed by the dealer at minimal cost but the purchaser will pay an inflated price.
I was in the market for a Tahoe a few years ago and I noticed a new one that was last year's model sitting among the new ones. I asked the salesman to get me the best deal he could on it since it was a year old. He said that because of the new car incentives, the new one was actually cheaper than the old one. I knew right away that I never wanted to be in the car industry!
Thank you for the video always wondered but never looked into it. My head hurts after hearing it, so it is better to have a brand-new car sit and rust for no money. Then put it on an auction or site for people to buy them at a reduced rate. I always thought some money was better than no money.