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Top Factors Affecting the Cost of Unsold SUVs

The SUV market in India is massive, and registrations occur daily. However, in some cases, top brands might overproduce their range of SUVs, leading to excess stock sitting around in a parking lot. An unsold inventory also means that manufacturers may eventually reduce the purchasing cost of these SUVs by a significant margin.

Top Factors Affecting the Cost of Unsold SUVs
However, one should always ensure they buy such a vehicle on clearance after thorough research associated with its costs.

Understanding the cost of unsold SUVs
The cost of an unsold SUV is typically lower than models on demand. However, the price of the vehicle will vary based on multiple factors, including its manufacturer, feature list, and trim. Even the state where the car is registered may affect the on-road price. Nevertheless, it is good to know what would happen to a vehicle that does not sell. There are a few ways dealers handle SUVs that are left unsold in their lots.

  • Incentives and discounts: When trying to sell slow-moving inventory, a dealer may turn to incentives and discounts. They often try to incentivise the buyer with generous offers compared to more popular models. Some manufacturers may even offer special deals and rebates on the SUV, which ultimately helps the dealer clear their inventory quickly.
  • Turning it into a loaner vehicle: A common trend among manufacturers is to turn less popular SUVs into loaners for temporary use for customers whose cars are being serviced. This strategy allows a new SUV that does not sell well to become a lightly used car. The “used” status may lower the price, but light usage would mean the car is still in excellent condition, making it a more attractive option for potential buyers.
  • Sell it to another dealership: It’s normal for the demand for one type of SUV to be much higher in one state than another. Many factors, including regional preferences, climate, terrain, and economic conditions, influence this demand variation. If a dealer cannot sell the vehicle, they may trade the inventory to a dealership in another state so that slow-selling cars may end up in markets where they are in greatest demand.

Considering that a dealership follows one of the steps above, a customer should be able to buy an unsold SUV in India for a reasonably low cost. However, it is advisable to speak to a trained representative when looking for the best offers on unsold vehicles.

Where to find unsold SUVs
While a manufacturer might announce discounts on their cars, one must determine where to find the right price for the vehicle, even if they consider buying from the unsold luxury SUV clearance stock.

  • The dealership: The most common place to find out if there are any unsold SUVs at a discount is at the dealership. One should either speak to the manager or the available sales representative at the establishment. The professional may draw up a list of unsold stock and the associated costs, which one could evaluate before making a purchasing decision.
  • Online: A simple search for the top unsold SUVs in the country should yield relevant results. One could explore multiple legitimate websites to find the right price on an unsold vehicle. However, buyers must be vigilant about which websites they visit. Some of them can be malicious and compromise sensitive information.

Tips to negotiate a reasonable price
The cost of unsold SUVs in the country may significantly vary based on multiple factors. For instance, buying from a premium brand may cost much more than manufacturers offering commuter-friendly and budget-friendly options.

  1. Set the budget: Before buying an unsold SUV, one should determine how much the purchase should cost. Some key factors to consider in this regard include insurance, fuel, maintenance and repairs, taxes, and registration fees. One should also have enough money set aside for unforeseen situations that may arise with the car. Setting a budget will prevent the buyer from going overboard with the purchase, even if it feels like a good deal.
  2. Research car value: To negotiate and get greater leverage on the value of an unsold vehicle, one should know its original cost. The buyer should look for pricing tools online on similar new models and compare them with the SUVs on sale. The year of manufacturing, colour, and demand will play a role in determining the right price.
  3. Compare deals: There are multiple dealerships that may offer deals and discounts on unsold SUVs. That’s why one should only consider the first offer presented, not sign up for it. The buyer should compare the cost of the particular SUV model across multiple dealerships before making a purchase decision.
  4. Be prepared to walk: Sometimes, you will be unsatisfied with the offer on an unsold SUV. In such situations, the best thing to do is to walk away, even if the dealership is trying hard to make the sale. It’s wise to research beforehand and trust your judgment on what price is reasonable. There are usually alternatives in the market that might better suit one’s needs.
  5. Look at past sales: To determine what an unsold vehicle may cost today, one could look at sales from previous years. For instance, in 2023, Maruti Suzuki launched the Jimny Thunder with discounts of up to INR 2 lakh, while the Grand Vitara was available with offers ranging between INR 25,000 and INR 30,000. Even brands like Hyundai announced discounts amounting to INR 1.5 lakh on the diesel variants of their premium SUV Tucson. Keeping track of such prices could help identify potential deals on unsold SUVs.

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