Question: Dealers & Used Cars
 

I would like to know, possibly from an insider, just how long a dealer will hold a used car on his\her lot.

*What are the conditions to hold it for a possible sale.

*What are the conditions to release it and how do they get it off their lot.

Thanks in advance for your replies.

It all really depends on the car and how much they think they can make on it. The used car manager will take into account floor plan costs, how much he/she bought it for, how much he/she put into getting it ready for sale, and how much they can sell it at auction for. I would say that an average car, if it is not sold at auction in the first place, is sent to the block after 3 months or so. It really depends on the costs of continuing to keep the car on the lot and whether he/she thinks she can sell it. I have seen an auto Miata that sat on a Toyota lot for 5+ months and a Z3 M Roadster that was sent to the auctions in less then a week. Really depends on the circumstances.

Thanks for that info. MazdaMonkey

Much appreciated

I work at a dealer, and MazdaMonkey pretty much hit the nail on the head. Different dealers do things differently of course, but 90 days is a pretty good average I think. Off-brand stuff we might only keep for a month, but on-brand 3-4 months. Unless we're too high in it and think we won't break even auction, then we might gamble and hold on to it longer.