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  • Apr 17th, 2020 5:44 pm
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[OP]
Newbie
Feb 13, 2020
87 posts
28 upvotes

Unsold Inventory

Hi

Are there any articles on number of unsold inventory which is left in Canada due to Covid?
Once situation normalizes, dealers and companies would give extra discounts to clear the inventory
63 replies
Deal Fanatic
Sep 1, 2004
6360 posts
4979 upvotes
You know how when before COVID flight are cheap and now under COVID, flight's price has doubled?


I think with manufacturer support they may be holding firm on prices.

But then again Subaru has 0.5% leasing so looks like program is already in place to try to move products.


Since you have no credit and only deal in cash, guess that won't apply to you.

Inventory report usually not something you can get easily and also differs dealer to dealer. If you know where your dealers storage lot is, go there on a Sunday to Snoop around to see what they got.

In the end I think this is normal and I don't think manufacturer are pushing that hard to get things moving again and actually wants to protect margin and residual.... But I could wrong, it's just a feeling.
Deal Fanatic
Apr 16, 2007
7979 posts
3270 upvotes
Financial District B…
Ravibhatia wrote: Hi

Are there any articles on number of unsold inventory which is left in Canada due to Covid?
Once situation normalizes, dealers and companies would give extra discounts to clear the inventory
Wait until April 10th which is the Best Before Date.
After that date all of them would have expired and will no longer be fresh and some may even get moldy which means all will be reduced 50% - 75% for quick sale.
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Banned
Apr 27, 2019
406 posts
287 upvotes
You get the best discount buying in bulk. The more you add to your order, the more they will take off the top.
[OP]
Newbie
Feb 13, 2020
87 posts
28 upvotes
mikeymike1 wrote: Wait until April 10th which is the Best Before Date.
After that date all of them would have expired and will no longer be fresh and some may even get moldy which means all will be reduced 50% - 75% for quick sale.
Someone looks not happy with this thread , someone seems to be stuck with a big stock or a loss it seems.. apologies!
[OP]
Newbie
Feb 13, 2020
87 posts
28 upvotes
Xtrema wrote: You know how when before COVID flight are cheap and now under COVID, flight's price has doubled?


I think with manufacturer support they may be holding firm on prices.

But then again Subaru has 0.5% leasing so looks like program is already in place to try to move products.


Since you have no credit and only deal in cash, guess that won't apply to you.

Inventory report usually not something you can get easily and also differs dealer to dealer. If you know where your dealers storage lot is, go there on a Sunday to Snoop around to see what they got.

In the end I think this is normal and I don't think manufacturer are pushing that hard to get things moving again and actually wants to protect margin and residual.... But I could wrong, it's just a feeling.
Thanks
Deal Expert
User avatar
Apr 21, 2004
54622 posts
19420 upvotes
Is this thread from the 3 Series vs. A3 prospective buyer?

Almost like snazzyiphoneguy with multiple entertainment threads.
Banned
Jul 24, 2009
834 posts
575 upvotes
kitchener
Nobody will release the inventory report to general public, because that would give people the upper hand when negotiating a price.

They will keep those cards close to their chest and try to pretend that theres nothing to see here.
But they know, that they are heading into a buyers market and I'm pretty sure that panic is starting to set in their ranks.
Banned
Feb 7, 2005
4498 posts
1183 upvotes
Most factories are closed . They might not start up if things are not well. I doubt at the beginning prices will drop much . Maybe once the factories start up again .
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Deal Fanatic
Sep 1, 2004
6360 posts
4979 upvotes
pfbmgd wrote: Most factories are closed . They might not start up if things are not well. I doubt at the beginning prices will drop much . Maybe once the factories start up again .
That's one of the factor that is different from other times in the pass. There is no supply pushing dealers to become overstocked.

Now I am sure demand after lock down won't be good either but all manufacturer need to do is pause factory for another month or two after lock down and it will sorted out.

That's why other than a few independent dealers that can't handle cash flow and panic, I doubt there is any crazy deals out there. Just your typical spring, model end deals.
Banned
Feb 7, 2005
4498 posts
1183 upvotes
Xtrema wrote: That's one of the factor that is different from other times in the pass. There is no supply pushing dealers to become overstocked.

Now I am sure demand after lock down won't be good either but all manufacturer need to do is pause factory for another month or two after lock down and it will sorted out.

That's why other than a few independent dealers that can't handle cash flow and panic, I doubt there is any crazy deals out there. Just your typical spring, model end deals.
I agree with you . It will be a few months for all this to unravel . To see where the prices will go .
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Deal Expert
Jan 15, 2006
15961 posts
13839 upvotes
Richmond Hill
LOL people thinking there will be deals. Supply and demand folks and there is no supply as noted with the factories closed.
Sr. Member
Sep 15, 2017
523 posts
536 upvotes
There will be deals, nobody is buying old stock. Can you imagine some dealer trying to sell a 2019 or 2020 in 2021 for a premium? LOL @ people who think cars appreciate in value sitting outside on a car lot. Wish in one hand and shit in the other, see which one fills up first.
Last edited by oilerfan89 on Apr 7th, 2020 11:39 am, edited 1 time in total.
Deal Addict
User avatar
Oct 24, 2016
1008 posts
859 upvotes
ON
Maybe later in the year if there are too many unsold 2020 models in the lots and production for the 2021 models has started.
Isn't it great to live in the 21st century where deleting history has become more important than making it.
Deal Expert
Jan 15, 2006
15961 posts
13839 upvotes
Richmond Hill
There will be deals but not to the extent certain individuals on RFD believe.
Banned
Apr 27, 2019
406 posts
287 upvotes
Why will there be normal demand for new cars if people are in a recession AND 99% of cars weren't even driven for several months?
Deal Fanatic
Sep 1, 2004
6360 posts
4979 upvotes
firestarter99 wrote: Why will there be normal demand for new cars if people are in a recession AND 99% of cars weren't even driven for several months?
There may be cooped up demand during lock down. But that should be short lived.

Also, 2020 would be one of the years with the least car delivered in a long while. So resale may be higher due to less units.

Again factories can adjust. And worse come, may be they can start building ventilators instead of cars if a vaccine is never found.
Deal Fanatic
Apr 16, 2007
7979 posts
3270 upvotes
Financial District B…
Xtrema wrote: There may be cooped up demand during lock down. But that should be short lived.

Also, 2020 would be one of the years with the least car delivered in a long while. So resale may be higher due to less units.

Again factories can adjust. And worse come, may be they can start building ventilators instead of cars if a vaccine is never found.
While yes 2020 will be a low delivery year the same occurred during the 2008/09 crisis but of course not as bad. As like back then I suspect the manufacturers will offer their dealer networks special hold back and unit reserves so they all don't lose their shirts when all settles down and the world gets back to normal.
Even if the pandemic ends today it will take months and months for the lenders to get truly comfortable to approve loans again. Especially if not knowing there's a bonafide vaccine out there. Just look at Japan, it's about to explode again in cases.
While new car franchises can always get support from the manufacturers the real dealers in trouble are the used car dealers. Every month a car sits the farther it dips in that quick sand.
Franchised dealers with used car lots may survive but a lot of the stand alone used auto lots will probably close shop for good if this pandemic goes on past summer into fall.

Another big issue will be the delay of the introduction of 2021 models. When tooling for 2021 will start will all be predicated on when the pandemic ends. Some manufacturers may not even introduce their 2021 models until Dec, Jan or even Feb. The industry is closely monitoring Japan right now.
Last edited by mikeymike1 on Apr 7th, 2020 1:16 pm, edited 1 time in total.
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Deal Addict
User avatar
Aug 17, 2009
2701 posts
1368 upvotes
These times will show how much of a sales gimmick the "unsold inventory" ads are made by companies. Some people are betting that with so many people laid off, there will not be an appetite to buy vehicles, hence decrease in sales price. Logically, that would make sense. But people forget that people are not rational and will rather destroy product rather than selling it at a discount.

By comparison, if anyone's wondering, back in 2016 (four years ago), American dairy farmers' milk output was 43 million gallons over the demand. Did they sell it cheap? Did they give it away for free, especially considering that some people are starving in the great US of A? Of course not: https://time.com/4530659/farmers-dump-m ... t-surplus/.

If producers will not give away or sell at a lower price an essential need, like milk, do you honestly believe they will sell a want commodity for cheap?
Corvus oculum corvi non eruit.
Deal Fanatic
Sep 1, 2004
6360 posts
4979 upvotes
AB gov is going to give us projection tonight and if rumor to be believed, lockdown in AB will be lifted July 1st.

Of course, it's all based on projection. BC's number is encouraging and we hope AB is may be a week or 2 behind. Now Ontario and Quebec, I'm not sure. Doesn't look like there's an end in sight based on numbers.

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