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car dealers aint going back
#8559275
03/18/22 04:02 PM
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Joined: Jan 2010
Posts: 22,997
fadetoblack64
OP
giddyup
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OP
giddyup
Joined: Jan 2010
Posts: 22,997 |
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Re: car dealers aint going back
[Re: fadetoblack64]
#8559279
03/18/22 04:05 PM
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Joined: Jan 2007
Posts: 15,556
reeltexan
THF Celebrity
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Auto storage lots not far from here are packed with vehicles. Corporate auto makers have this thing just like they want it. Profits soaring, labor costs shrinking. Less work, more money.
"If we ever forget that we are One Nation Under God, then we will be a nation gone under." Ronald Reagan
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Re: car dealers aint going back
[Re: fadetoblack64]
#8559280
03/18/22 04:06 PM
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Joined: Apr 2011
Posts: 29,045
Western
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Posts: 29,045 |
I think their new favorite words are "market adjustment"
If at first you dont succeed, then skydiving is not for you..
"Don't trust everything you read on the Internet"- Abraham Lincoln Dennis
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Re: car dealers aint going back
[Re: fadetoblack64]
#8559291
03/18/22 04:12 PM
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Joined: Jan 2013
Posts: 19,668
Pitchfork Predator
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Why would they? Supply and demand will decide the answer to that question……recession is a good example….
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Re: car dealers aint going back
[Re: fadetoblack64]
#8559294
03/18/22 04:15 PM
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Joined: Aug 2008
Posts: 14,957
don k
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Eventually used cars will become overly used. Not enough new cars being made or sold to become the next generation of used cars. Then what?
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Re: car dealers aint going back
[Re: fadetoblack64]
#8559344
03/18/22 05:25 PM
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Joined: Jul 2012
Posts: 15,802
603Country
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The best medicine against ‘market adjustments’ is marketplace competition. That’ll come back, rest assured. The adjustment will eventually be negative, when auto storage lots start to overflow. I can wait for that.
Not my monkeys, not my circus...
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Re: car dealers aint going back
[Re: fadetoblack64]
#8559370
03/18/22 05:55 PM
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Joined: Dec 2010
Posts: 8,841
DocHorton
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Posts: 8,841 |
I read a story about GM a while back....CEO said they are no longer going to have dealerships full of 100's of vehicles. Inventory management was costing them millions every year. They said in the future they are going to a more limited inventory model with build to suit, and run a leaner, more efficient company.
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Re: car dealers aint going back
[Re: fadetoblack64]
#8559379
03/18/22 06:10 PM
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Joined: Jan 2012
Posts: 29,174
TXHOGSLAYER
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I guarantee that the EV and foreign manufacturers won’t slow production.
LETS GO BRANDON
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Re: car dealers aint going back
[Re: DocHorton]
#8559463
03/18/22 07:53 PM
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Joined: Nov 2012
Posts: 15,682
QuitShootinYoungBucks
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Posts: 15,682 |
I read a story about GM a while back....CEO said they are no longer going to have dealerships full of 100's of vehicles. Inventory management was costing them millions every year. They said in the future they are going to a more limited inventory model with build to suit, and run a leaner, more efficient company. It will be interesting to watch. By not having a lot full of vehicles, they're going to slow demand. Yes, they'll make more per unit but on fewer units. Paying 20-30% more for a vehicle will have people keeping them longer and repairing versus replacing. Eventually people will begin to understand what a worthless proposition it is to own a depreciating asset. They need to be careful that they don't quell their own industry.
https://web.archive.org/web/20170223065011/http:/www.rrdvegas.com/silencer-cleaning.html
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Re: car dealers aint going back
[Re: fadetoblack64]
#8559466
03/18/22 07:57 PM
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Joined: Jul 2006
Posts: 110,804
dogcatcher
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If you can control supply you can also control demand. Less supply means more demand.
Combat Infantryman, the ultimate hunter where the prey shoots back. _____________"Illegitimus non carborundum est"_______________
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Re: car dealers aint going back
[Re: QuitShootinYoungBucks]
#8559468
03/18/22 08:00 PM
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Joined: Dec 2010
Posts: 8,841
DocHorton
THF Trophy Hunter
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Posts: 8,841 |
I read a story about GM a while back....CEO said they are no longer going to have dealerships full of 100's of vehicles. Inventory management was costing them millions every year. They said in the future they are going to a more limited inventory model with build to suit, and run a leaner, more efficient company. It will be interesting to watch. By not having a lot full of vehicles, they're going to slow demand. Yes, they'll make more per unit but on fewer units. Paying 20-30% more for a vehicle will have people keeping them longer and repairing versus replacing. Eventually people will begin to understand what a worthless proposition it is to own a depreciating asset. They need to be careful that they don't quell their own industry. Very true. Also, for most dealerships, they make as much or more profit on service than they do on actual vehicle sales. I can definitely see the value in GM selling 15-20% less cars but making 15-20% more per car to equal it out.
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Re: car dealers aint going back
[Re: fadetoblack64]
#8560320
03/20/22 01:29 AM
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Joined: Jan 2007
Posts: 15,556
reeltexan
THF Celebrity
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Posts: 15,556 |
Service is available in many other places. You can only buy a new vehicle from them.
"If we ever forget that we are One Nation Under God, then we will be a nation gone under." Ronald Reagan
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Re: car dealers aint going back
[Re: fadetoblack64]
#8560386
03/20/22 03:34 AM
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Joined: Apr 2005
Posts: 19,881
TurkeyHunter
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It would be interesting to validate some of hypotheses on this thread by examining the big auto 10-K and 10-Q reports.
To be determined
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Re: car dealers aint going back
[Re: DocHorton]
#8560396
03/20/22 03:56 AM
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Joined: Aug 2005
Posts: 20,964
Sniper John
gumshoe
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gumshoe
Joined: Aug 2005
Posts: 20,964 |
I read a story about GM a while back....CEO said they are no longer going to have dealerships full of 100's of vehicles. Inventory management was costing them millions every year. They said in the future they are going to a more limited inventory model with build to suit, and run a leaner, more efficient company. It will be interesting to watch. By not having a lot full of vehicles, they're going to slow demand. Yes, they'll make more per unit but on fewer units. Paying 20-30% more for a vehicle will have people keeping them longer and repairing versus replacing. Eventually people will begin to understand what a worthless proposition it is to own a depreciating asset. They need to be careful that they don't quell their own industry. Very true. Also, for most dealerships, they make as much or more profit on service than they do on actual vehicle sales. I can definitely see the value in GM selling 15-20% less cars but making 15-20% more per car to equal it out. I have not read the article, but I was having this conversation with a family member the other day. My thought was the same. I thoughts were that dealerships would start to follow closer to Tesla's selling model. Dealerships will become more like showrooms than lots full of new cars. Buyers will order direct from the manufacturer either online or with help from the receiving dealership. The dealership will only receive and install any packages or accessories that were purchased and deliver the vehicle to the buyer. Then handle warranty, maintenance, and repairs. Their lots would become mostly trade ins and used vehicles. Even those I think would become more like a carmax business model where they are sold online at fixed prices with no haggle. I could be wrong, but I think that is where the newest generation of vehicle buyers is headed and wanting.
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Re: car dealers aint going back
[Re: Sniper John]
#8560425
03/20/22 08:39 AM
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Joined: Feb 2019
Posts: 70
TheCswift
Outdoorsman
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Outdoorsman
Joined: Feb 2019
Posts: 70 |
You know...
I would be ok with that if I could order a barebones, no package truck with manual transmission and manual windows maybe even no bed, or comes from the factory with a flatbed.
I doubt they would actually let you have complete control over what you would want. It would cut into their overhead having to maintain that.
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Re: car dealers aint going back
[Re: fadetoblack64]
#8560431
03/20/22 09:59 AM
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Joined: Dec 2013
Posts: 7,016
GasGuzzler
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Posts: 7,016 |
Labor is not going down in any market, especially in the car business. Aftermarket shops are generally about ten years behind on what they will attempt to diagnose and repair. None of the economics regarding the corporate side of the business should be attributed to the dealers. Dealers aren't corporate. They are franchises like McDonald's. Dealers have little say in most of the decisions being discussed here. Lots of speculation from those on the outside but generally sales "shows the profit" and service "pays the bills". Basically fixed ops is made to look break even and gets robbed of about half of its production while sales has to "turn a profit". The real money is in used cars...always has been and REALLY is now. Any GMC dealer can sell you a new Sierra but if you want something specific used, there may be only one choice.
Pass the gravy.
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Re: car dealers aint going back
[Re: fadetoblack64]
#8560441
03/20/22 11:38 AM
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Joined: Oct 2008
Posts: 15,226
Tbar
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My son is a loan officer at a S&L and deals with the scum of the earth car dealers jacking up prices(over list) on people and calling to get loans. He just got the ok from his bosses not to coddle this unethical behavior and to deny the loans. They can just take their business elsewhere.
Make America Great Again
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Re: car dealers aint going back
[Re: fadetoblack64]
#8560507
03/20/22 01:36 PM
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Joined: Aug 2008
Posts: 14,957
don k
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Posts: 14,957 |
Back when I was younger very few bought new vehicles off the lot. You went into the dealer and ordered what you wanted. Body style, engine, transmission, exterior and interior color etc. In about a month or so your vehicle would be delivered to the dealer. You got what you really wanted. I liked it like that. You didn't have to pay for a lot of extras you may not have really wanted.
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Re: car dealers aint going back
[Re: fadetoblack64]
#8560530
03/20/22 02:53 PM
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Joined: May 2012
Posts: 8,384
nsmike
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Posts: 8,384 |
I think that things will get more like before but won't go completely back. There will be some cars on the lot for immediate delivery, but a more limited selection, with more pressure to order what you want.
for every stereotype there's a prototype don't be the prototype
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Re: car dealers aint going back
[Re: fadetoblack64]
#8560537
03/20/22 03:07 PM
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Joined: Dec 2008
Posts: 4,519
syncerus
Extreme Tracker
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Extreme Tracker
Joined: Dec 2008
Posts: 4,519 |
I think the business model will shift to some sort of shared use or limited lease model once autonomous vehicles become common. The dealerships will ultimately become maintenance and staging facilities for corporate owned vehicles. It’s actually not a bad model for the consumer as the real cost of vehicle ownership is staggering.
NRA Patriot Benefactor & DSC Lifer
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Re: car dealers aint going back
[Re: dogcatcher]
#8560568
03/20/22 04:11 PM
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Joined: Mar 2012
Posts: 13,639
1860.colt
emoji colt.45
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emoji colt.45
Joined: Mar 2012
Posts: 13,639 |
If you can control supply you can also control demand. Less supply means more demand. Just look @ the ammo.... Scare tacticks... Look @ ammo prices now... Tried ta warn ya, some on here get thar rocks off putting others less fortunate down... Makes em sleep good @ night... Whin i post how tough times are, they put me down... They typical : Carry on...
i'm postaddic
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Re: car dealers aint going back
[Re: 1860.colt]
#8560576
03/20/22 04:22 PM
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Joined: Mar 2010
Posts: 3,029
huck18
Veteran Tracker
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Veteran Tracker
Joined: Mar 2010
Posts: 3,029 |
If you can control supply you can also control demand. Less supply means more demand. Just look @ the ammo.... Scare tacticks... Look @ ammo prices now... Tried ta warn ya, some on here get thar rocks off putting others less fortunate down... Makes em sleep good @ night... Whin i post how tough times are, they put me down... They typical : Carry on... Yeah, no one want's to hear idiots whine about the issues they created. Stupid is as stupid does.
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Re: car dealers aint going back
[Re: Tbar]
#8560617
03/20/22 05:41 PM
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Joined: Oct 2008
Posts: 15,226
Tbar
THF Celebrity
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Joined: Oct 2008
Posts: 15,226 |
My son is a loan officer at a S&L Credit Union and deals with the scum of the earth car dealers jacking up prices(over list) on people and calling to get loans. He just got the ok from his bosses not to coddle this unethical behavior and to deny the loans. They can just take their business elsewhere. Duh 🙄
Make America Great Again
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Re: car dealers aint going back
[Re: fadetoblack64]
#8560624
03/20/22 06:04 PM
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Joined: Jul 2009
Posts: 9,763
Tin Head
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Posts: 9,763 |
“ you will own nothing and you will be happy”
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Re: car dealers aint going back
[Re: Tin Head]
#8561070
03/21/22 12:08 PM
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Joined: Nov 2013
Posts: 6,113
soooo
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Posts: 6,113 |
“ you will own nothing and you will be happy” And if your mind gets right we'll allow you a few creature comforts.
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