Have you ever wondered how dealerships sell all the used cars? You probably must have thought about where the keep the unsold ones. A dealership won’t give them for free, we know that for sure. Then how they sell them to clear the room for upcoming vehicles. Do they sell such cars at a lower price or return them to their previous owners? This is a common and frequently asked question about the dealerships.
The answer to this question depends on how long a used car has been there. The longer a car stays, the less beneficial it is for a dealer. A used car that has been sitting for a longer time works in favor of the buyer. That’s why you can get a good offer while looking for Second Hand Cars in Cheshire.
How Long Dealerships Keep Used Cars
Well, there is no exact answer to how long dealerships keep a vehicle. To get a clear idea, let’s see how a dealership works.
How a Dealership Works
Dealerships work like franchises which means they buy used cars only to sell them. And like any other franchise, a dealership makes a profit by selling cars at a higher price. Generally, dealers buy the inventory by taking out loans. They took the loan on each vehicle and pay the amount when they make sales.
Dealers have to pay interest on a vehicle for each day. This interest keeps on growing as long as the car is in the lot.
How Much Time IS Enough Time?
Dealers don’t mind if a used car doesn’t sell itself for a month or two. They can bear the loan for 30 to 60 days and can still make a handsome profit. But 3 months or 90 days is usually the limit for most dealers. That’s when a used car standing in the inventory starts giving its dealer Goosebumps.
The start thinking to sell it quickly to cut the interest. Plus, they worry about losing their money as 3 months is enough time. However, cars that were shipped from another country or continent may take some time. So the dealer may not worry about keeping such cars for a longer time.
How Dealerships Sell Unsold Cars
Sending the cars to previous owners or dealership is never an option. So dealers try to make some money by following the traditional options. They can price the used cars or sold them in an auction. In case used cars failed to get customers, the dealer may ship them to another market.
These are the markets where customers are more interested in specific models. But selling them in the local market is always the first priority of a dealer. This is a point that buyers can exploit while buying a used car. Since the dealer is more motivated to sell such a car, you can get a better deal
How You Can Spot Such a Car
Used cars usually have a sticker posted on driver’s door side. You can find the necessary manufacturing information written on it. If you found a date that is more than 90 days old, you know you have found one. The dealer will be eager to sell it so you can buy it at a reasonable price.
