A franchise is a type of business model for automobile dealerships. Essentially, this implies that you can purchase that new car through the dealership, however at a somewhat greater price than you would pay directly from the manufacturer. These automobiles are owned by the dealer, who is responsible for their purchase. In this case, I cannot return them to the manufacturer at the end of the calendar year as unsold. Traders must first persuade clients to acquire their goods, which they do by making numerous offers to them in exchange for money.

When dealers are unable to sell cars, they have a number of options at their disposal. They have the option of sending unsold vehicles to a different market where there may be a demand for any of the models they currently have in inventory. For example, a dealer from Kosovo may alter a model if it does not suit a trader from northern Macedonia who is in demand for that model.

Sale at public auction

In addition to private sales, automobiles can be purchased at public auction. A portion of the price is paid to an auction house in this situation, resulting in a substantial loss for the agent. When customers bring their own automobiles to be serviced, it is also possible to use these cars as a replacement for them.

Cost-cutting measure

Prices can be reduced as an alternative solution. Automobile manufacturers and dealers want to get rid of their "inventory" towards the end of the year so that their outdated models do not "compete" with new models that will be introduced the following year, according to Automotive News.