What happens to newer model unsold cars?

Updated: 4/28/2022
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13y ago

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Dealers who continue to face unsold "new" models from the previous production year may have to purchase them outright from the manufacturer (an action coined "burning them" in the industry), and they can either be put into service as loaner or demo vehicles, or have any and all incentives and discounts applied in the attempt to sell them faster, thus avoiding continued floorplan and insurance costs.

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Q: What happens to newer model unsold cars?
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