| Have you ever noticed how car dealerships all over | | | | inventory as well. |
| the United States will run special year-end sales in | | | | As you can see, when the dealership is left with |
| hopes of getting rid of last years inventory to make | | | | inventory sitting on their lot at the end of the physical |
| room for the new models coming out? However, it | | | | year, then the dealership will be charged in interest |
| seems as if the majority of these year-end sales | | | | charges. As a result, the dealerships will use this |
| promise individuals they can save thousands of dollars | | | | opportunity as a motivation to run their year-end sales |
| since they are reducing the prices of their entire | | | | in hope of removing old inventory to save them some |
| inventory. | | | | money. There are also many car manufacturers that |
| Have you ever wondered if this is really the best time | | | | will offer car dealerships to move out their current |
| for someone to purchase a brand new car or is this | | | | inventory as well, which is another incentive to |
| just another ploy to bring in customers to their | | | | dealerships. Car manufacturers do this in hopes that |
| dealership in hopes of selling a car? If you are an | | | | the car dealerships will order their new models for the |
| individual who does not have the most appealing credit | | | | following year from their manufacturing plants. They |
| in the world, then how will you be able to take | | | | will offer the dealerships certain incentives as well to |
| advantage of these special year-end sales? | | | | move the year's inventory to make room for the new |
| At these year-end sales, dealerships always seem to | | | | models. |
| advertise their specials to include their inventory of | | | | Another reason dealerships will run these year-end |
| vehicles. However, these dealerships do not actually | | | | sales is due to the fact that the month of December is |
| own the inventory on their lots. Instead, their entire | | | | a generally slow month for dealerships. The year-end |
| inventory is financed through a bank, which in turns will | | | | sales events will help dealerships and dealers meet |
| charge the dealership interest for carrying the loans on | | | | their monthly quotas, which they could not do |
| the cars. The interest in which the banks charge to the | | | | otherwise. It is not unusual for the sales management |
| dealerships are based directly on the amount of the | | | | teams bonuses to be based upon the sales production |
| dealership's credit line, which the bank extends to the | | | | and/or the actual number of units sold in a given year, |
| dealership, and how much of that credit line they have | | | | which can cause undue pressure to be placed on the |
| used on not only new car inventory, but used car | | | | entire staff of the dealership as a whole. |