Car dealerships are franchises. That means they buy new cars from the manufacturer and sell them at a higher price to make a profit. Therefore, once the dealership buys those cars, they belong to them. They can’t just send the unsold ones back to the manufacturer at the end of the year. In order to make money, they have to get customers to buy them.

There are a few options for the dealership when their cars don’t sell. They can ship the unsold cars to a different market where the specific model might be in demand. “For example, a city Toyota dealer with a Toyota pickup may trade it with a small town Toyota dealer who needs it,” George Iny, president of Automobile Protection Association told The Globe and Mail.

The cars can also be sold at auction, but that forfeits some of the sale to an auction house, which means the dealership would lose a lot of money since the car would already be discounted. Another option is that the cars can be used as a loaner car when people bring theirs in for service.

The final option is to price the cars to sell. Something to keep in mind when buying a car is that carmakers and dealerships want to get rid of inventory so older cars aren’t competing with newer models. Iny suggests purchasing a car in the fall because that’s when dealerships push to get last year’s cars sold. Looking online for your next car? Consider these things before buying or leasing a car online.

A dealership will generally hold onto a new car for 2 years before taking an action to either sell it off to another party or offer deep discounts to customers. Even though the car is brand new and never driven, it is still 2 years old, possibly outdated, and potential customers may start to wonder if there is something wrong with it.

If the new car cannot be sold after many varied attempts, the dealer may decide to simply donate it to a non-profit organization, and take the tax write off in a last case scenario. The charity will then sell the car off. Once the car is sold, the charity will send the dealership a receipt showing the sales price, which is the amount that can be deducted.

So, all of the unsold cars can actually benefit the buyer, but before you go to purchase a new set of wheels make sure you know how to outsmart a car salesman.

There is a place where you can find incredible deals from many of your local dealerships – and all in one place. Because of the pressure to move unsold inventory, you’ll often find terrific deals on previous year cars – including luxury sedans, sports cars, SUV’s, trucks, electric, and hybrid models in all makes including Mercedes, BMW, Lexus, Infinity, Toyota, Nissan, Ford, Chevy, and much more.

These deep discounts are only advertised in a FEW places online, so you probably won’t find the same prices anywhere else – no matter how many dealer sites you check. That’s because the dealerships want you to pay full retail for your car.

Just about any car with any feature you can imagine! And many come with free luxury upgrades, free maintenance, and free technology upgrades. Packages others pay a premium for – but you won’t have to. If you’re willing to spend a little time, you can find your perfect car at an excellent price.