Why do big car dealers send their cars to auction instead of selling it off?

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Cedric

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So there is a used suv that I wanted for $7,999. The sales rep told me that if the suv don't sell by end of week, they are going to send it to the auction. I had offer $7,000 cash but they rejected my offer. I don't get it??? If they send it to the auction, wouldn't they get less then my offer?
BTW I told them screw you and send it to the auction. I think it's just a sales pitch. What do you think??
 
Most only have room on the lot for so many cars, & they keep the best & auction the rest. Plus, they want a nice selection, so if the inventory has too many SUV's, some of them go to make room for other types of cars.
 
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