New Norm: Less Dealer Inventory

Weather Man

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I do think the auto manufacturers are somewhat BS'ing about the chip shortage affecting them. But there is still a global silicon shortage affecting multiple industries. There are big name chips such as NVidia in vehicles too. I'm sure many others I'm not familiar with, or some subsidiary/partner/JV name that we wouldn't recognize right away.

The chip shortage is the real deal, it is costing many brands a LOT of money.
 

13COBRA

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I think the chip shortage is gonna really put the hurt of all brands sports car inventory. I could easily see guys who ordered 2020 corvettes that then got pushed into a 2021 being pushed into a 2022. Pretty crazy.

People powering their homes with the F-150 is gonna juice those sales beyond belief. I bet you couldn't find one on a TX lot right now.

I heard a rumor that Ford promoted that secretly. They cannot advertise that it can generate power for a house, because it doesn't meet certain specifications. But if a consumer did it, called the news, etc...it would go viral.
 

coposrv

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I’m ready for a rent to use second car option. Like a bounce house for my kids birthday party or a boat on a summer vacation. So many companies are really reevaluating the need for huge office leases that the work from home option is going to be vastly increased. With a lot of people I know working from home at least semi-permanent the need for second vehicles will subside.


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13COBRA

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I’m ready for a rent to use second car option. Like a bounce house for my kids birthday party or a boat on a summer vacation. So many companies are really reevaluating the need for huge office leases that the work from home option is going to be vastly increased. With a lot of people I know working from home at least semi-permanent the need for second vehicles will subside.


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I think that depends a lot on your area.
 

coposrv

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I think that depends a lot on your area.

I should have added in my region. Cars in New England seem to be over all viewed as a functional piece of equipment. Not many people talk about their new car purchase or care too for that matter. I would speculate that to 75% of the driving population here It’s just a means of transportation.


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Lambeau

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Hey Nick,
Two questions:
1) What percentage of new cars leaving your lot are lease vs purchase?
2) Do you see the lower inventory affecting lease and purchase percentages?
 

13COBRA

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Hey Nick,
Two questions:
1) What percentage of new cars leaving your lot are lease vs purchase?
2) Do you see the lower inventory affecting lease and purchase percentages?

1.) 98% purchase, 2% lease. Honda/Toyota/Lexus/Mercedes would be significantly different than a Big Three store.
2.) Yes. With vehicles maintaining their value longer, UNLESS lease residuals dramatically change quickly, many more people will buy rather than lease.
 

VRYALT3R3D

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I do think the auto manufacturers are somewhat BS'ing about the chip shortage affecting them.
What makes you think that? A lot of OEMs cancelled their orders because they expected demand to go down. When they did that, the chip manufacturers pivoted to consumer electronics, which had a huge surge in demand. Now the OEMs want their chips but they are now at the back of the line because they let their contracts go. This is their fault. And not every OEM is effected by this.
 

Weather Man

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I’m ready for a rent to use second car option. Like a bounce house for my kids birthday party or a boat on a summer vacation. So many companies are really reevaluating the need for huge office leases that the work from home option is going to be vastly increased. With a lot of people I know working from home at least semi-permanent the need for second vehicles will subside.


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Guys think that until Mama has the car and they have shit they want to do.
 

DSG2003Mach1

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I’m ready for a rent to use second car option. Like a bounce house for my kids birthday party or a boat on a summer vacation. So many companies are really reevaluating the need for huge office leases that the work from home option is going to be vastly increased. With a lot of people I know working from home at least semi-permanent the need for second vehicles will subside.


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Not to muddy up the thread too much but I think returning to office space is going to vary a lot from company to company and area to area ($/sq ft). Talking to an office furniture guy and some other execs they're seeing a lot of people ramping up to have people back in offices over the next 6 months. There's some speculation that where $/sq ft is reasonable they may take up MORE space in order to maintain social distancing. The furniture guy is getting a lot of labor only jobs to spread stuff out
 

13COBRA

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Then why all the stand alone "quick lanes" owned by Ford going up everywhere? (Many) Dealerships are dinosaurs and will soon be extinct...bank on it.

Ford doesn't own the Quicklanes lol

Let's set a date, and then set a price. I'm down for a friendly wager.
 

Weather Man

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