Dealer gets a kickback from factory when car is sold. Didnt they once play games with in service date to get incentive from factory without actually selling the car. I remember this being a thing back in the day not sure if it is still happening
Once a car is discontinued, it doesn't just disappear instantly. Here are 12 old, killed-off vehicle models that inexplicably racked up new sales in 2021.
Does America not have any laws about how old a vehicle can be when it’s first registered and still be classed as new? In the UK a vehicle can be a maximum of two years old (from build date) when it’s first registered as new. Over this it gets a age related plate that is based on its build date so a dealer would always register a car before it gets to two years old then put it on the used pitch. I’ve seen cars on the used pitch with 4 miles on them. Can also be other reasons when emissions laws change sometimes older stock has to be registered before a certain date.
the manufacturer pays for the warranty, not the dealer, the dealer wants a factory warranty on their inventory. Maybe it's just a way to market them to a different audience..one who may look at used but not new. A 'picky' new buyer may not be interested in a 2 yr old new car with lot rot...but a savvy used buyer may feel they've found the buy of a lifetime.
Floorplan also plays a role. Dealerships are paying a bank(not their dealership chain) a loan to keep cars in inventory. The longer a car sits at the dealership, the more they pay on their floorplanning loan.
The invoice for a car sold to the dealership may have a lienholder like a bank on it. When I worked at the dealership some 10+ years ago, BofA was doing Hendrick’s floorplan.