What do manufacturers/dealers do with the new cars they don't sell

[Joel]

I'm assuming dealers give it back to the manufacturer.
So does that mean the manufacturers strip it and melt it down to recycle the steel for the next model year?

Just wondering....

 

[PHOEN$X]

I highly doubt they do that. Dealers buy the cars from the manufacturers, so they probably discount the leftovers until they sell, or let them sit on the lot, or turn 'em into fleet vehicles...

 

[spartan2-3]

The manufacturer does not take the vehicles back, instead they offer Factory to Dealer incentives. I know of dealers that are stuck with brand new 02 models.

 

[tucsonsx]

There is no such thing as a new car that a dealership doesn't sell - it is just a matter of how long. I remember seeing new 83 VW Rabbits for sale in 85. The flooring charge just got inventory adjusted to other units until the right person came along. They achieved what the buyer always perceives as a " good deal " - they bought the cars below what the dealer paid for them. The sad part for them of course was that the blue book on their new cars was about half of what they paid.