What exactly is a spare car sitting in a car dealer’s parking lot?

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

So while technically these units are 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 that 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 there has been, you’re probably 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 for you, the buyer, considering buying a surplus car. The first is that your options will likely be somewhat limited. In general, there is a reason these cars are still on the dealer’s lot. It could be that they are in the least popular color, a slightly unusual combination of trim and accessory packages, or something of the sort. However, if you’re not such a picky eater, you can get a good deal on these cars.

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

Again, these are just minor inconveniences of looking at leftover 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.