Every year the auto makers make a certain number of vehicles. For argument sake, lets say 1,000,000. I can not believe every year all the new vehicles made every year are sold, even when the year old ones are discounted. Where do the unsold ones go? To some unknown graveyard, like elephants when they go to die?
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Manufactuers can vary the production rate depending on how the cars are selling.
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If you still have some left over, just lower the price and eventually someone will buy it.
One million cars? In 2000, there were over 7.5 million cars sold new in the U.S. Only 1 million were crushed and recycled. At that rate, by the year 2273, the U.S. will be entirely covered in cars. Back in 1982, I bought a brand new 1980 Ford pickup. I paid over $1000 less than the sticker price. That was quite a bit back then, you could buy a new 82 F150 for around $4200, I paid $2800. I soon learned why it hadn’t sold, the truck was a dog.
Many companies stockpile cars to keep prices up.
Are you talking about the huge stockpiles of cars outside of Bristol (I was just by there in late December)? Because that situation, AFAIK, does not happen in the US.
What kind of answer do you expect? They use them as paper weights? :rolleyes:
Why don’t you call a new car dealer & ask him then get back to us?
There’s an abandoned strip mall near where I live which was transformed into a new car lot. I kid you not – you scan the lot and all you see are rows and rows and rows of brand-new cars, trucks, SUVs, interspersed with just-like-new 2000/2001 models…
The irony is that the dealership is about 5 miles away.
My first impression was similar to the OP…as in, “Where the heck do all these cars go if they’re not sold???”
BTW…yes, I do know most of them are eventually sold. It was just the sheer number of 'em that knocked me for a loop…
Many go to rental companies and into fleet sales. Not to mention sales to the various government agencies.
I worked in the upholstered furniture industry for 40 years and never met a person in the industry that didn’t marvel at the number of chairs and sofas, etc. that were manufactured. It seemed that everyone would have to buy new furniture every couple of years and of course they don’t.
FWIIW, there were over 17MM cars and light trucks manufactured in the United States and Canada last year, and slightly more than that were sold to end users (that is, dealer inventories went down).
The industry is calling for ~15 MM production this year – we’ll see.
And yes, almost that many but not quite that many are also junked each year (including used car exports, a growing business). The average fleet age has actually been creeping up a little until the past couple years, when it came down slightly (it’s about 8 years).
Yes, I don’t know much about the american car industry! For some reason, cars are far more expensive in England than in other European countries, and more than can be allowed for our having right hand drive cars.
There was a cool Staff Report about junked cars a while back. It’s not perfectly responsive to the OP, but it’s close enough I figured a link might be helpful.
Awe-inspiring, isn’t it? I saw a similar sight in a field in Midlothian, TX, miles from the nearest new-car dealership. It’s hard to believe anyone makes that many car sales. :eek:
I presume that the dealerships store the extra cars offsite becaue (a) their lots are on more expensive/crowded real estate, so they have to find some large empty space elsewhere to put them, and (b) nobody would believe their ‘the new model year is coming in-everything must go!’ spiel if they could see how much space is actually available. 
-Christian
Maybe they also go back to the factory? We have a Toyota factory north of here in Fremont, California. Hmmm, I might buy from them.