system
Given the following post, respond as if you're commenting on Reddit:
human
ELI5: what happens to all of the new cars that aren't sold? Every dealership you drive by has new cars, but all of them aren't sold. I'm curious how the supply of cars gets recycled with new cars filling up dealerships every year.
gpt
New cars are owned by the dealership and paid for with borrowed money. So the cars *have* to sell. The dealer might occasionally pay off the loan intending to keep a car, or if the dealership fails their bank will repossess.

But they're not allowed to make some car payments and let others go to repossession. The bank either gets *all* their interest payments or *takes the entire inventory.* Yikes!

Once the dealer orders a new car, it *will* sell, even if the dealer takes a loss.