What happens to the models they cant sell
I was just wondering ,what happens to all of the motorhomes that are left on the lots of all the dealers,just thinking if they wont go down on price they were do these units go. Happy Camping
Forum Discussion
Stefonius wrote:
My understanding is that manufacturers allot each dealer a certain number of new units, and that they subtract one from the allotment for each unsold unit left over from the previous model year. This (if true) motivates the dealer to get rid of unsold units before the new models come out. We got a fantastic deal on a unit that was brand new, but just about to turn two years old.
Your understanding is wrong:) OEM's will sell as MANY RV's to a dealer as the dealer wants and the OEM can supply. The OEM is as money hungry as the dealer. Now, some OEM's do have a program for THEIR salespeople to the dealer---IF the dealer is NOT moving the units, then that OEM Salesperson is NOT making more money. So, he has an incentive to make sure his dealer has the right units and knows how to move them. Some OEM's, the OEM salesperson gets a small commission for every unit he sells to the dealer and does NOT get his full commission until that unit is sold, so he has an incentive to help the dealers move the units. As to what happens after the model year, the dealers have a mark down sale and each month the price goes lower and usually the Salesperson commission goes up as the dealer puts a special commission incentive to move older stock. They do NOT sell to other dealers as the transport cost would eat up any profit and other dealers are NOT going to take on the problem of 1 or 2 year old units. Besides, you would HAVE to sell to another dealer for that Brand /Make to keep the warranty going. Doug
