Bankrupt Stock

Honest John Back Room » Motoring discussion
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Sat 20 Dec 2008 21:38
Bankrupt Stock - loskie
With car main dealers going bust/closing now on an unfortunately regular basis what happens to their new unregistered and pre reg stock? Does it belong to the manufacturer, a finance co or the dealer themselves? If so does this "new" stock find its way into the car auctions? Are these generally as closed sales or as ones open to the public?
Are there bargains to be had. What about the remaining manufacturer warranty?

Edited by loskie on 20/12/2008 at 21:40

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Sun 21 Dec 2008 02:34
Bankrupt Stock - Rattle
If the dealer actually goes into adminstration then the car would belong to the adminstrators. They probably would sell them off at auction. If a branch simply closes down they would probably be transfered to another dealer and sold at cost or even below.
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Sun 21 Dec 2008 07:17
Bankrupt Stock - storme
friend of mine owns a main dealer...says he doesnt pay for the car till he sells it

also says theyare having a big meeting with the manufacturers soon, about the current pricing,as they cant lower the prices till the manufacturers say so

i have asked why there are no half price sales,as in all other industries,,,!!

.
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Sun 21 Dec 2008 07:25
Bankrupt Stock - Falkirk Bairn
i have asked why there are no half price sales as in all other industries
!!



In last few weeks there have been some 1/2 price cars - Kia Magentis - if you would want one!

Often the new cars in the showroom / even the 2nd hand cars on the forecourt actually belong to a finance company under loan agreements.

When the garage sells the car the finance company gets its money.

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Sun 21 Dec 2008 09:56
Bankrupt Stock - the swiss tony
friend of mine owns a main dealer...says he doesnt pay for the car till he
sells it

Mostly right... but as the unsold stock ages, then the dealer does have to 'adopt' (pay) for the car, the time scale does differ, but its around 6months to a year from delivery to the dealer.
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Sun 21 Dec 2008 11:52
Bankrupt Stock - Andrew-T
>The current pricing, as they can't lower the prices till the manufacturers say so

I think Peugeot have moved a little way down this route, as there are quite a few well-priced 207s at dealers in the north - Sheffield, Manchester, Leeds - alongside apparently identical cars priced 1K or even 2K more. A local salesman I know said some of their cars came from auctions reserved for Pug dealers at the big site by the M62 near Brighouse.
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Sun 21 Dec 2008 11:54
Bankrupt Stock - Bill Payer
i have asked why there are no half price sales as in all other industries
!!

Not half-price, but the Renault web-site is offering 30% off several models.
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Sun 21 Dec 2008 09:44
Bankrupt Stock - rjr
With car main dealers going bust/closing now on an unfortunately regular basis what happens to
their new unregistered and pre reg stock?


New unregistered cars usually remain the property of the manufacturer/distributor until you or I buy them from the dealer. In the event of a dealership going into administration the manufacturer/distributor will seize the stock. Used cars and demonstrators would be seized by the Administrators and sold off.
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Sun 21 Dec 2008 10:54
Bankrupt Stock - gordonbennet
In the event of a dealership going into administration the manufacturer/distributor
will seize the stock.


Agreed, have collected many over the years, sometimes it can be a most unpleasant experience.
These jobs tend to take priority over anything alse, obviously.

Was at a East Mids dealer some years ago that folded there was a chap in tears who had only put down a large deposit on a car the day before, apparently losing all.

Ordinary folk not deserving of such, very distressing.

I suppose this sort of thing reminds us to use credit cards for deposits where possible.
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Sun 21 Dec 2008 17:48
Bankrupt Stock - bananastand
Indeed you are right GordonB, paying cash to any company, unless you are taking your goods away there and then, is a big gamble. I remember a chain of carpet dealers years ago were pressuring customers into paying cash a day or two before going bust.
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