Modern life is unimaginable without an automobile. Daily we see dozens of different automobile models and we can fairly say that we’re dependent on them. The dependence is not unsurprising. We get so much comfort and pleasure by owning a car. If you don’t have an automobile, you might plan to purchase it. Selling and buying a car is a time-consuming process, you should take into consideration many details. But, if you find the process interesting and challenging, you might even think about becoming a dealer. In both cases, whether you plan to buy a used vehicle, or become a dealer you should know how long do dealers keep used cars on lot.
Below we will discuss all the needed topics related to selling used automobiles. Remember “Knowledge is power” and learning more new details helps you to get the highest profit out of the sale. So, let’s start the journey!
Checkup how long do dealers keep used cars on lot before making a decision
As I’ve already mentioned, reading the blog will help you in two cases, whether you plan to buy a used vehicle, or plan to become a dealer. Before clarifying how long do used cars sit on dealer lots, let me share with you some details about used vehicles. Nowadays, used automobile trading became very popular and accessible for broad masses of people. Unsurprisingly demand on used vehicles increases day by day and I’ll explain to you the reason. First of all, purchasing a used automobile gives us the possibility to get a car on a limited budget and save money. Yes, you save money by the purchase and I’ll tell you why. It’s a well-known fact that the new automobile loses its 10% price once it leaves the lot. The depreciation increases and hits to 60% in two or three years after the purchase. Hence, it’s much profitable to buy a used vehicle instead of a new one, and avoid price depreciation.
Importance of knowing for how long was the car on the lot
Now, let’s come back to the main topic and explore how to check for how long do car dealers keep used cars on the lot. You might think that knowing the period is just a piece of additional information about the vehicle, but it’s not true. Knowing the period for how long is the automobile on the lot says a lot. First of all, you might get suspicious if you find out that the model which you plan to purchase is on sale for a long time. We all know that a car in a good condition and the appropriate price is always sold sooner. In case you see that the model was on the lot for months, that means that it’s either overpriced or not in a good condition. Hence you should double-check all the details very carefully.
How to check for how long was the car on the lot
Now since we already know why the data is so important, let’s move on to the practical part and explore how to check for how long do used cars stay on the lot. There are many resources to check the data. You can check it onsite, while visiting the dealership or online, with the help of websites. Once you choose a vehicle, you can ask the dealer to show you the paperwork. There you will find the date when the paperwork was completed, which indicates the arrival time at the dealer.
Another way to find out the information is Carfax. The website shows when the automobile was listed for sale. Besides, there is another webpage that helps you to clarify details about the vehicle, for instance, Autotrader.
How long do used cars sit on dealer lots and how to use the data profitably?
Now, since we already know the importance of the time in case of trading, and how to check for how long do dealers keep used cars on lot, let’s explore how to use received information. It is a well-known fact that the longer is a vehicle on the lot, the cheaper it gets. As we’ve already mentioned above, if a vehicle is for a long time without any demand that’s a bad sign. Taking into account that about 40-43million used vehicles are sold each year in the USA, means that an automobile should be sold within a month or so.
Keeping a used automobile on the lot is not profitable for the dealers as well, and they try to sell it as soon as possible. The reason is that the longer it stays on the lot they have to make a discount. Sometimes dealers use financing while purchasing used vehicles, hence they intend to sell them sooner and get the profit out of the sale. If the car isn’t sold on time, their financing responsibilities increase. For that reason, it’s important to take into account how long do used cars sit on dealer lots while negotiating on price.
Before starting negotiations always check the date when the automobile was set on the lot. That helps you to determine whether you can get any discount or not.
How long do car dealers keep used cars on the lot before the sale?
Generally, it is hard to say the exact period of how long do car dealers keep used cars on the lot, as it depends on many factors. Nonetheless, on average if the car is not sold after 3 months, then dealers try to do their best and sell it sooner, even by making a big discount. All the thing is due to the fact that they usually buy vehicles by financing. As you may already know, the interest rate of the loan may increase as long as it’s not covered on time.
Besides the above-mentioned fact, dealerships determine bonus systems as well. This is another reason why dealers try to sell an automobile sooner. Overall, their actual profit out of the sale is determined by the period of time the car was sold. Now you know how long do used cars stay on the lot.
Overall, nonetheless, it’s hard to say exactly how long do used cars stay on the lot, as it depends on many factors, hopefully, you’ve learned many interesting facts. For instance, now you know why it’s important to know the period and how to use it while negotiating. Besides, you also know how to get the information through the paperwork and website. Hence, I’m sure you will be well-prepared for the negotiation and can get the best deal out of the purchase, or being a dealer!