Leftover car deals: what exactly do you mean?

What exactly is a surplus car found in a car dealership parking lot?

In the auto business, when we refer to surplus cars, we mean vehicles that are still on the lot from the last current model year. In other words, usually in late summer, next year’s models start showing up in dealer inventory.

So while these units are technically still in their current model year, with next year’s models coming into inventory, these vehicles become surplus cars.

So what does that mean for you as a car buyer?

The initial effect on a dealer as these new car models arrive is not that great. But as the year draws to a close, you can bet both the manufacturer and the dealer once these leftover cars are gone.

And that can mean a very good deal for you, the buyer.

In fact, if it has, you’ll probably be more than aware at the end of the year when you see sales, rebates, special financing, and everything else coming your way as dealers and manufacturers are feeling the pressure to sell these surplus cars.

There are a couple of minor drawbacks if you, the buyer, are considering buying a surplus car. The first is that your options will likely be somewhat limited. There’s usually a reason these cars are still sitting on the dealer lot. It could be that they’re in the least popular color, a slightly unusual combination of trim and accessory packages, or something along those lines. However, if you’re not so picky, you can get a great deal on these cars.

Also keep in mind that if you buy a car at the end of the year, based on book value, that car is already a year old. So, in effect, your car has suffered a bit of depreciation at that point.

Again, these are just minor inconveniences of looking at surplus cars and can certainly be offset by the kind of good deal you can get on these cars.

These cars can be a little harder to find, but with a little footwork and shopping, you can find one of the best deals on a car you can get. Don’t expect to find these types of cars on the dealer’s website, so you’ll have to get out there and hit the pavement a bit.