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What happens when a dealer has an inventory of used cars that do not sell due to general slowdown in the economy?
Wiki User
∙ 12y ago
All businesses are forced to ammend their practices to deal with the changing conditions of the economy. In this case, it is likely that the dealer will begin offering deals....lower prices, feature days, featured vehicles, anything to get customers in the door. Around me, dealers are now accepting trade ins at above their recommended value. When it comes down to it, capitalism will eventually force them to liquidate in order to turn a profit in some way. Remember....sitting on a car, as it gets older, its value will decrease whether it is being driven or not. So evenatually, in a continued economic downturn, this dealer will start slashing his prices to make room for new used vehicles, as well as make the profits roll in to his bank account (he has made an investment in these cars, and he will want to make a return...or else his business flounders).
Wiki User
∙ 12y ago
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