New Norm: Less Dealer Inventory

5.0 Hatch

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Sounds like running a dealership isn't an easy task with the amount of variables in play. Seems like finding the break even point on a new vehicle could even be difficult. Props to you guys!

Not sure how true it is but I was told that our local mom and pop owned chevy dealership was being restricted off inventory until they invested in a remodel to fit the company branding. The dealership now looks like every other dealership so I'm going to lean towards this being true since I don't see an investment that large paying off for the area that we live.
 

13COBRA

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Sounds like running a dealership isn't an easy task with the amount of variables in play. Seems like finding the break even point on a new vehicle could even be difficult. Props to you guys!

Not sure how true it is but I was told that our local mom and pop owned chevy dealership was being restricted off inventory until they invested in a remodel to fit the company branding. The dealership now looks like every other dealership so I'm going to lean towards this being true since I don't see an investment that large paying off for the area that we live.

Sadly, that's 100% true. Manufacturers have pushed the "pay-to-play" process for years.

All the manufacturers do the same thing, some just worse than others. Lincoln and Cadillac are among the worst.
 

Rb0891

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Do you have any more information on it? I haven't heard of that.
I will have to find it. Think it was called balloon financing. Sounded like in effect it had lease type deal parameters (payment, mileage, etc...) with the option to return or buy outright at the end. The fed tax credit was put in as lease cash or something and it sounded like there was an additional incentive $2,500 to use this financing option.
 

13COBRA

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05 Super Duty. Old bitch just crossed 200k lol

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I'll gladly trade for it :)

But in reality, being 16 years old already, you've missed the trading point where it makes more financial sense.
 

hoamskilet

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Nice to see I'm not the only one. Mines an 03 and getting close to 280k. It's that other brand though.
Yeah, I've recently been looking at trying to upgrade to at least a used 6.7, but after looking around I gave that idea up for now since I didn't want to sell a kidney or one of my kids

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IronSnake

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Sadly, that's 100% true. Manufacturers have pushed the "pay-to-play" process for years.

All the manufacturers do the same thing, some just worse than others. Lincoln and Cadillac are among the worst.

Just witnessed this first hand. Pops has run a local Ford dealership for the last 35-40 years. They had to break Lincoln out from their main Ford building, demolish the used car building, plop an absolutely beautiful Lincoln building in its place. It's gorgeous but jesus, it was expensive.
 

13COBRA

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Just witnessed this first hand. Pops has run a local Ford dealership for the last 35-40 years. They had to break Lincoln out from their main Ford building, demolish the used car building, plop an absolutely beautiful Lincoln building in its place. It's gorgeous but jesus, it was expensive.
Yep, and by the time it was takes to pay for it, it'll be overdue for another face-lift.

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BlksvtCobra01

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Sadly, that's 100% true. Manufacturers have pushed the "pay-to-play" process for years.

All the manufacturers do the same thing, some just worse than others. Lincoln and Cadillac are among the worst.

Yup. One of the local dealers a friend of mine worked at to keep Lincoln they had to remodel Lincoln only lounge, and some fancy chandelier on the show room.


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BlksvtCobra01

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not sure, but im looking at hybrids right now (NOT prius LOL). gas is gonna be nuts soon. AZ is already 2.80 plus just for regular ...I can see 3.20 coming soon. ****ing bullshit this is why I left CA.....

How else you think democucks are gonna push hybrids and electric vehicles? Drive gas up and force people’s hands. Do as I say not as I do.


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13COBRA

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Yup. One of the local dealers a friend of mine worked at to keep Lincoln they had to remodel Lincoln only lounge, and some fancy chandelier on the show room.


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Yep. A friend of mine, who sells 30 Lincolns a year, had to spend $1.6mil to keep the franchise. Insane. I would've sold it back to them.
 

SSSSSSSSSSSSVT

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Most franchises run the same rules. It’s in their contracts to maintain and pay for new branding to keep the business up to date. I’m not sure why anyone thinks this is a big surprise?
 

13COBRA

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Most franchises run the same rules. It’s in their contracts to maintain and pay for new branding to keep the business up to date. I’m not sure why anyone thinks this is a big surprise?

Who said it's a surprise?
Who said other franchises don't do that?
Who said they shouldn't require you to maintain and pay for new branding?

No one said any of that.
 

7998

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The local Mercedes dealer also had an Audi franchise. Audi told them they had to build one of their standalone centers and it was going to cost I think $7 million bucks. The Merc dealer told Audi they could keep their franchise.

BTW @13COBRA what is this $2500 discount/credit Ford keeps mailing me for a new F-150 or SD? Is that above and beyond any deal I can get on my own?
It's coming straight from Ford not the dealer.
 

Weather Man

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Yep. A friend of mine, who sells 30 Lincolns a year, had to spend $1.6mil to keep the franchise. Insane. I would've sold it back to them.

Damn, hope he can run enough other inventory to make it worthwhile.
 

13COBRA

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The local Mercedes dealer also had an Audi franchise. Audi told them they had to build one of their standalone centers and it was going to cost I think $7 million bucks. The Merc dealer told Audi they could keep their franchise.

BTW @13COBRA what is this $2500 discount/credit Ford keeps mailing me for a new F-150 or SD? Is that above and beyond any deal I can get on my own?
It's coming straight from Ford not the dealer.

Yes, it's called a private offer.

It's above and beyond what your neighbor can get.

Damn, hope he can run enough other inventory to make it worthwhile.

0 chance.
 

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