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They just sell them. On dealer lots. Plain and simple.
Yes, there are usually discounts. Not huge "we're giving it away" discounts, but usually a good deal. Certainly not at rediculously low prices. Just a few thousand off, if that.
Yes, they advertise the hell out of year end clearances, and I don't know how you'd miss the ads.
Some manufacturers make deeper discounts than others. It depends on how many of what model they have sitting around, and how bad they want to move them.
But, no one is giving cars away, or sending them back, because the next newest model year came out.
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I can sum up the clash of religion in one sentence:
"My Invisible Friend is better than your Invisible Friend."
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