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So that is exactly the confirmation of what I thought...the "crisis" is way over hyped by the media...my own experience and others makes me think that the car business is not suffering that much....people hoping for crazy deals because of COVID 19 will be disappointed...
As I said before, the majority of people that are losing their jobs are mainly in retail, they have no business in buying a new car, especially a luxury one. I suspect cheap used cars could be the ones in trouble.
Dealers don't stay in business selling 3-5 cars a day. Maybe Ferrari/Lamborghini dealers, but not Lexus or Mercedes.
Used car lots may very well also be in trouble. They're not as well capitalized and if the used market drops, which apparently it's in a double digit decline in used car values, yeah. If they bought a car at auction for $10,000 they could normally flip for say $15,000 and now they can get $13,000 for it that's obviously hitting their bottom line.
So that is exactly the confirmation of what I thought...the "crisis" is way over hyped by the media...my own experience and others makes me think that the car business is not suffering that much....people hoping for crazy deals because of COVID 19 will be disappointed...
As I said before, the majority of people that are losing their jobs are mainly in retail, they have no business in buying a new car, especially a luxury one. I suspect cheap used cars could be the ones in trouble.
Huh? Luxury and discretionary businesses are off ~50% of their volume. I guess you’re a ‘glass half full’ kind of person. So the scant buyers are chasing even more scarce supply...
The part you’re missing is supply was already constrained by tariffs and union strikes. Now COVID totally shut factories down. So dealers will hold the line on pricing for the reduced volume. It’s really as simple as that...
So that is exactly the confirmation of what I thought...the "crisis" is way over hyped by the media...my own experience and others makes me think that the car business is not suffering that much....people hoping for crazy deals because of COVID 19 will be disappointed...
As I said before, the majority of people that are losing their jobs are mainly in retail, they have no business in buying a new car, especially a luxury one. I suspect cheap used cars could be the ones in trouble.
you are off base here............
Majority of people mainly retail?..........wrong.
I played golf with a dentist that was closed down. I have a neighbor that is a plastic surgeon, closed down. How do you thing stock brokers are doing right now? Realtors? Restaurant/bar owners? Hair salon/stylists closed down? Again, none are retail hourly workers. How about guys that run body shops, nobody driving = less wrecks = less work.
All of the above are clients for new luxury cars. None of which will be buying.
I played golf with a dentist that was closed down. I have a neighbor that is a plastic surgeon, closed down. How do you thing stock brokers are doing right now? Realtors? Restaurant/bar owners? Hair salon/stylists closed down? Again, none are retail hourly workers. How about guys that run body shops, nobody driving = less wrecks = less work.
All of the above are clients for new luxury cars. None of which will be buying.
++++++
Just because the dealers aren’t taking your lowball offer for a Trackhawk doesn’t mean the economy isn’t in a massive correction....
Huh? Luxury and discretionary businesses are off ~50% of their volume. I guess you’re a ‘glass half full’ kind of person. So the scant buyers are chasing even more scarce supply...
The part you’re missing is supply was already constrained by tariffs and union strikes. Now COVID totally shut factories down. So dealers will hold the line on pricing for the reduced volume. It’s really as simple as that...
All the dealers I contacted seems well stocked, supply problems did not arrive few days after lockdown...there are actually cars still on rail carriers being shipped...I know a thing or two about car business and logistics...
Huh? Luxury and discretionary businesses are off ~50% of their volume. I guess you’re a ‘glass half full’ kind of person. So the scant buyers are chasing even more scarce supply...
The part you’re missing is supply was already constrained by tariffs and union strikes. Now COVID totally shut factories down. So dealers will hold the line on pricing for the reduced volume. It’s really as simple as that...
hold the line on pricing...........May 1st is next week, you don't sell that new car in the next 3 months it will be called a leftover and you paid the vig on the floorplan. Sell it now, get it off the floorplan and order less inventory for 2021 will be the dealer's gameplan.
Unions/suppliers will be pushing hard to get the factories running again so inventory won't be short. Manufacturers already rolled out the 0% for 84 months (7 YEARS!)........they know trouble is coming down the line.
I know the deals will get better this summer..........the buyer pool has shrunk significantly and used car prices will take a drop when the rental fleets get dumped at the auctions so the manufacturers know they need to make deals for the new stuff.
I currently drive a 2018 Yukon and I am actively looking to buy a 2020 Yukon. I don't love the new 2021s so a 2020 is perfect especially discounted.
Multiple things can be true at once:
1) The economy is in the tank.
2) Dealers are idiots thinking they will skin the cream of the few buyers.
3) Deals will get better this summer when the dealers get desperate and manufacturers put more cash on the hood.
You call 12% off lowball?? LOL Have you ever actually bought a new car?? You must be the dream customer for dealers.
I stated elsewhere I just bought a new GM SUV. Similar to your situation, specifically equipped at a premium trim level, AWD, specific interior, etc. Unlike your situation, fortunate to have scored one at a 20% discount in early March. But I live in California - buyers have more choices than the ridiculous dealer cartel in Texas.
I’m guessing the trim level you want is on the extremely rare side (mine is a $60k “volume” seller though optioned up), and your local dealers know it. Worse, you could have actually created your own problem by calling around and sparking faux “demand” for your car. It happens.
Dealers don't stay in business selling 3-5 cars a day. Maybe Ferrari/Lamborghini dealers, but not Lexus or Mercedes.
Used car lots may very well also be in trouble. They're not as well capitalized and if the used market drops, which apparently it's in a double digit decline in used car values, yeah. If they bought a car at auction for $10,000 they could normally flip for say $15,000 and now they can get $13,000 for it that's obviously hitting their bottom line.
Sales friend said his Mercedes dealer would average 3-4 cars sold per day.
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