Automotive

Why would used car lots rather keep the car for 3-6 months rather than sell it?

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  • Jul 1st, 2013 1:54 pm
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[OP]
Banned
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Nov 10, 2012
777 posts
81 upvotes
Hamilton

Why would used car lots rather keep the car for 3-6 months rather than sell it?

Past weekend, a friend of mine went car shopping for a newer used vehicle. Cars he was looking at were all in excellent shape. Carproof reports were generated a good 3 to 6 months ago. The cars are still sitting on their lots.


Case and pt,

He wanted to make a deal of $16,000 on a 09 Honda Accord, asking price $17,500 (37,000KM, lease return). Those idiots at the car lot wouldn't do it. They were willing to deal him at 17,250, stating they already lowered it from before. So he packed up and left. It was probably the best offer those guys at the car lot got. My friend was willing to settle at 16,900, but they didn't want to go that low.

Why are car lots so obnoxious to lower the price 1,000 and would rather it sit on their lot than sell it? These people clearly bought the car from Honda for 12 to 15 thousand at the most. Not any more. They still could have made 2000 profit with admin fees.

Its pathetic. They're losing money, and room to inventory new cars. Lol, my friend even said that that Accord was sitting so long the battery drained, and they jumped it back to life.

Most people, if buying and selling products, would want to get rid of old product at any reasonable offer. Its a joke!
80 replies
Jr. Member
Mar 19, 2008
134 posts
18 upvotes
1) someone will buy it eventually
2) because, money (see number 1)
3) your friend showed interest aka he might be back ... if not, someone else will.. see number 1
Deal Expert
User avatar
Jul 30, 2007
25095 posts
9979 upvotes
Toronto
there will always be someone who has less knowledge in the used car market as to what is the fair price to pay ... the used car dealers simply doing the waiting game so they can get a big sucker to buy.
Deal Fanatic
May 1, 2012
8756 posts
6470 upvotes
Markham
1) maybe it'll sell tomorrow
2) money = money = money
3) because used car salesmen
[OP]
Banned
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Nov 10, 2012
777 posts
81 upvotes
Hamilton
Clearly it won't sell tomorrow. The car has been sitting on their lot for 5 months. It will sit there for another 5 the way they are going. How do you make any money if you hold onto every penny you can?

Let it sit there then. If you want to act like that, then every person can go to that car lot and troll every salesperson and the manager who is so stuck up as to not want to sell the car for 1,000 off. That's not even 10% of the car!!
Deal Fanatic
Dec 24, 2005
5397 posts
994 upvotes
Maybe the same thing could be said about your friend -- why wouldn't he rather have a car for $500 bucks more versus not having one and living in Hamilton.
Deal Addict
Jun 16, 2009
1826 posts
513 upvotes
Woodbridge
Since it is all a guess game , may be this car costed dealer higher for any unknown reasons and don't want to let it go for a loss ! Secondly if dealers will start getting rid of old inventory without profits just for the sake of it , they will run out of the business soon . Buyers are getting smarter and smarter and like to buy things lower than the actual cost .

Jim321 wrote:
Jun 17th, 2013 3:59 pm
Clearly it won't sell tomorrow. The car has been sitting on their lot for 5 months. It will sit there for another 5 the way they are going. How do you make any money if you hold onto every penny you can?

Let it sit there then. If you want to act like that, then every person can go to that car lot and troll every salesperson and the manager who is so stuck up as to not want to sell the car for 1,000 off. That's not even 10% of the car!!
[OP]
Banned
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Nov 10, 2012
777 posts
81 upvotes
Hamilton
ssainani wrote:
Jun 17th, 2013 4:14 pm
Maybe the same thing could be said about your friend -- why wouldn't he rather have a car for $500 bucks more versus not having one and living in Hamilton.
Because he has one that's perfectly functional and would prefer one with more class and quality than the older model he has now.

Mind you, the battery on a car should not drain out of the blue for no apparent reason. . This car had to be sitting for a looooooong time for the battery to run dry. That says a lot regarding the time it was sitting there not even turned on.

It's their loss. No one has bought it for 5 months. Hell, no one even cared enough to take it for a test drive! Let it sit there then. That's pathetic though, the car has been sitting for 5 months there's clearly a reason why it hasn't sold yet. Too expensive and dealer who is too greedy to come down a reasonable amount on the price
Deal Addict
Jul 13, 2006
2139 posts
226 upvotes
Thornhill
Probably took the working battery out to a vehicle that someone was interested in lol.
Deal Addict
Nov 18, 2011
2324 posts
584 upvotes
Lindsay, ON
Asking price already seems like a good price for the amount of milage it has. If dealer was asking$14000, your friend probably would have offered $12500 even though he was already getting a steal. Some people just can't buy things at asking price, even if it is already a good deal already. (Me being one of them) just tell your "friend" to move on. Lots of used accords out there.
Sr. Member
Apr 18, 2010
578 posts
90 upvotes
OP: I know what you think about used car lots from the tenor of your post. And, I'm not disagreeing with you.
But I have to think that they are business people like any other. They are there to turn a profit. If they think they can get more money than it costs them to have the car continue to sit on the lot then that's what they will do.

As others have suggested, the logic works both ways. If your friend thinks the car is so good, he can pay a few hundred dollars more for it.

It's a game and it takes two to play.

I'm sure the lot has some business sense. So why get yourself all out of joint if they think the car will fetch more than it costs to keep? You think you know more about buying and selling used cars than they do?

I can understand your unwillingness to pay more than a certain amount. But you feel that there is something morally wrong with their refusing to lower the price for you. Interesting.
Deal Addict
User avatar
Aug 3, 2006
4151 posts
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What I got out of the OP's post was that he's angry that a dealer wouldn't sell him a car for the price he wanted. Stop acting like a crybaby, you crybaby!

Conversely, I'm sure the dealer is probably complaining about you and how your "friend" wouldn't increase his offer by $350. Just like how the dealer doesn't have a sale, your friend doesn't have a car and has to waste time looking at other lots. The extra time wasted is probably equal to that $350, so in the end nobody wins.
Moderator
May 28, 2012
10319 posts
2458 upvotes
Saskatoon
Due to stereotypes, used car salesmen get a bad rap...I imagine these salesmen have the same (poor) opinion of low-ballers.

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