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2006 DTS
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Discussion Starter #1
How much money do you guys think the manufacturer gives the Cadillac dealership on left over?

Do they get any more money for say a car that was leftover twice as a 2014?
 

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'02 ETC CE, '04 CTS-V, '04 XLR, '13 XTS Platinum
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Not sure what you mean by "left-over." Unsold new inventory? Dealer incentives?

CCC
 

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2018 CT6E, old: 2014 XTS Vsport, 2005 CTS-V, 2004 CTS-V.
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Each dealership is different and it is based on sales amoung other things. It really does pay to shop each dealership then work them against one another.
 

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Don't forget to include shopping in neighboring cities or even states as well via the Internet. I used such an ad to start my discussions on price as it would be nothing to travel a bit further to save additional coin.
 

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Unless I'm reading this out of context, the OP is not asking for buying tips, but instead asking a specific question:

What do manufacturers pay dealers for new vehicles that don't sell.

Honestly, I never thought of this question because I've always assumed a dealership orders as many cars as it thinks it can sell for a model year and takes out loans, (or uses cash on hand of they're well-funded) to purchase them. If the dealer can't sell them, the manufacturer is under no obligation to buy them back.

The only time a manufacturer performs buy-backs (that I know of) are when a disgruntled convinces a dealership they were sold a lemon (specific laws govern what constitutes a qualified "lemon") or an owner arbitrates and wins. In the former, the dealer is reimbursed by the manufacturer; in the latter, the manufacturer deals directly with the consumer. Often, these situations are resolved by the manufacturer allowing the customer to select a new vehicle in order to retain their business, and selling the buy-back as a used vehicle once they think it's (really) been repaired, though the title reflects it as a buy-back.

So I did a little research in order to figure out if manufacturers actually do purchase unsold inventory and haven't been able to find anything that states they do, --other than offer dealer incentives, (in the form of rebates and allowances to spur sales) to help them succeed and by offering special dealer discounts after the sale, which helps them to lower the sale price from the MSRP, and still ensure a profit.

Searching dealer inventories, one can still find two year-old vehicles with little more than test-drive mileage on the odometers, meaning they don't get re-purchased. GM doesn't don't sell cars directly to the public, they have franchised dealerships for that purpose. Or in one of the rarer episodes yet, a manufacturer is faced with a glut of new cars on their dealer's lots that don't move at all, and skips building the following model year altogether, as in the case of the non-existent 2015 ELR.

http://www.costulessdirect.com/blog/where-brand-new-unsold-cars-go-to-die/
http://www.autoblog.com/2008/02/29/how-a-car-dealer-is-run/

In summary, I cannot find anything that definitively states manufacturers buy back unsold inventory from dealers. Anyone else?

CC
 

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I think there are some percents that manufacturers give to the dealerships. It should be like that since this is a business and the strategy where both sides are in the win is the most logical one. However, I think I even couldn't pay for one percent of the amount since my personal time and the money that I earn on two different jobs isn't enough. I think it's could be due to the fact of the people that steal the money from the country but I think the only way to be happy in this situation is to find ways where I can earn some money online. I'm a bartender and that money that I earn isn't enough, however, my employee said that about the surveys https://themoneymix.com where I can earn from one to five bucks per task. However, there's Intellizoom which gives ten dollars per task too. It usually involves evaluating a website. So with that kind of process of earning money, I think I would collect money for the new car.
 

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2019 XTS Prem Lux AWD Phantom Gray/Ebony traded 2017 CT6 Prem Lux AWD Stellar Blk
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To my knowledge manufacturers do not give money to dealerships for unsold inventory. If anything they may offer rebates or other incentives to help with the sale of certain models.

Unsold inventory can often hurt dealerships as a manufacturer may cut back on the cars for the new model year that it allocates to a dealership that as an excessive number of new cars on their lot from a previous model year.

Be careful when you purchase a new car left over from a previous model year as the car may not carry the full warranty. As the warranty starts when the car is placed in service.

Often times a dealer will do an in house purchase on stock they cannot move and this will place the car in service causing the clock on the warranty to start ticking.

It all sounds crazy but manufacturers allow these in house purchases and by doing so the dealerships allotment of a new car for the new model year is not hurt.

When you purchase a car from the previous model year ask service, service manager to give you the documentation that will give you the full history of that car. That documentation will show wether or not that car was placed in service and wether or not you have a full warranty or how much time is left on that warranty,

A previous model year car that is purchased by the dealership in house is not titled and for that reason the car can be sold as a new car.

Several years ago I purchased a brand new car that was almost two model years out so let’s just say I am speaking from experience.
 

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A previous model year car that is purchased by the dealership in house is not titled and for that reason the car can be sold as a new car.

Several years ago I purchased a brand new car that was almost two model years out so let’s just say I am speaking from experience.
My dealer told me that after activating service on a car it can't be sold as new. I have bought mine with activated service and I was dealing with used car department and it was advertised as used car.
 

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2019 XTS Prem Lux AWD Phantom Gray/Ebony traded 2017 CT6 Prem Lux AWD Stellar Blk
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My dealer told me that after activating service on a car it can't be sold as new. I have bought mine with activated service and I was dealing with used car department and it was advertised as used car.
State laws may vary , but here an untitled new car is sold as new whether it is placed in service or sold as a demonstrator car with miles on it. Most dealerships here will try and keep miles placed on a demonstrator at or under 6,000 miles.
 

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I bought a Chevy Malibu with a few thousand miles on it 2 years old and had never been titled. (owners daughter would use it with a dealer plate) Salesman told me that it came with full warranty. After having the car for a short while I checked on it by calling GM and they told me the warranty had started when the car had recall work done on it when it came in brand new and I was out 2 years of warranty. It was like pulling teeth trying to work something out with the dealer. When I bought my 2016 XTS in May of 2017 I called GM before I bought the car to make sure I was getting the full warranty. Some people will lay it on thick to make a sale.
 

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Warranties begin with the "In-Service Date" -typically when the vehicle has passed the Pre-Delivery Inspection (PDI) and is sold to a customer - This is supposed to be shown on your warranty. I don't care what a salesman says, if I don't see it in writing, it means nothing. Once you drive off the lot, the salesman's job is complete. Until you sign the Sales Agreement, you still retain negotiating power.
 

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That real nice old man? Lie to us? No doubt I learned the hard way. Before I bought the XTS I called GM with the vin number. For me it is now a standard procedure and is what I recommend. I traveled 600 miles to buy my XTS and I my way home I noticed a vibration. I took it to my local shop and all 4 wheels and tires were checked on a road force machine. One rim had a dent on the inner bead, one rim had curb rash and two tires were out of spec. The shop sent the results to the dealer and they sent me a check for $2,200 to pay for the repairs. Difference between a Chevy and a Caddy? That is one classy dealership. Yes, I would buy from them again!
582691
 
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