Unsold cars around the world.

[F=MA]

With the collapse of the financial markets in September '08, it was just a matter of time before it started trickling down.

Car dealers are the proverbial canary in the coal mine. More fallout to come.

As always, best wishes to those of us who are struggling at present.

 

[mike1180]

you can't run your business with giving cars away, you got to to understand that you got to make profit to pay bills like any other businesses.
...and that is why so many dealerships are closing down!
i work for honda dealership and things are tough, our business is down about 50% vs. last year.
people coming to dealership with stupid offers for discount.

REMEBER PROFIT PAYS MY PAYCHECK AND OTHERS AT WORK LIKE ANYONE ELSE!

That is true but cash flow is the lifeblood of every business.
If you overproduce, or the demand falls off, you are best to sell them.
Keeping inventory, paying storage, insurance depreciation etc. is not economically viable.
They would be best to lower the price until all the existing inventory is gone, re-evaluate the demand, and match the production outputs to the new demand. That would give them cash flow (even at a loss) to pay immediate expenses, and stay alive until it rebounds.
No sense making 1 more car when they are piling up like that.
IMO

 

[Dino]

That is true but cash flow is the lifeblood of every business.
If you overproduce, or the demand falls off, you are best to sell them.
Keeping inventory, paying storage, insurance depreciation etc. is not economically viable.
They would be best to lower the price until all the existing inventory is gone, re-evaluate the demand, and match the production outputs to the new demand. That would give them cash flow (even at a loss) to pay immediate expenses, and stay alive until it rebounds.
No sense making 1 more car when they are piling up like that.
IMO

You are right but the dealerships don't take on those overhead costs...I could be wrong but most dealerships are independently owned and don't take on the financial burden until they take delivery. Those car manufactures need to cut out the dealer and have an outlet sale. Sell them right from the port.
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[darth frosty]

I agree with mike^^^^^^^^^^^
I read a story about one small buisness owner who when he saw the markets tightening up, cut his prices 20%.

It hurt at 1st but by doing that he was able to edge out the competition.

 

[Revvv]

People aren't worried about vacations, cars, furniture, or clothes. They're just trying to keep the house payments up and lights on

That is so true. It's tough out there right now for millions.

 

[Ride_or_Fish]

... Thats what that bailout is everyone on here has just purchased a new Chevy oh but you cant have it

Well said!

 

[shawnski]

You are right but the dealerships don't take on those overhead costs...I could be wrong but most dealerships are independently owned and don't take on the financial burden until they take delivery. Those car manufactures need to cut out the dealer and have an outlet sale. Sell them right from the port.
Posted via Mobile Device

yes dealerships are individual owners that they still have to pay rent, insurance, utilities and pay employees and when you lose money in each car how will you able to overcome the expenses, you can cut back but too much overhead and not enough profit will result in shut down the dealership.

the cars at the dealerships do not belong to us , it belongs to manufacure, there were couple of gm dealerships close in my area and the cars were still in the lot for couple of months.

 

[Dino]

My mistake I thought once dealers took ownership of vehicles they were theirs. Even so the manufacture could sell them much cheaper from the port, couldn't they?
Posted via Mobile Device

 

[shawnski]

My mistake I thought once dealers took ownership of vehicles they were theirs. Even so the manufacture could sell them much cheaper from the port, couldn't they?
Posted via Mobile Device

oh yah... that would be great, that is where the cash back and rebates are coming from!!!
so... what to we do if the manufactures sells them from the port!!!

 

[UncleSteve]

I don't see the deals out there for the amount of parked cars.
Cost of all vehicles has gone through the roof over the last 10 years.
20k doesn't buy much today, 30k a decent car but not top of the line.
I just don't think prices have been in line with the average working guys pay.
Too many people upside down in payments for both cars and more importantly homes.
We should have cut back buying these over priced items a long time ago.
There was a line from a movie - long time ago, you don't have to be able to afford it --freakin finance it!! That attitude comes with a big price....

 

[Fastfrog007]

The one I want is parked in the middle that makes 200