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New Norm: Less Dealer Inventory

Discussion in 'Road Side Pub' started by 13COBRA, Feb 22, 2021.

  1. 13COBRA

    13COBRA Resident Ford Dealer Premium Member Established Member

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    Service centers are profitable on their own. Typically more profitable than the sales side in ANY dealership.
     
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  2. 5.0 Hatch

    5.0 Hatch Active Member Established Member

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  3. VRYALT3R3D

    VRYALT3R3D Well-Known Member Established Member

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    Maybe you should write an article for InfoWars because you clearly don't know how things work and post misinformation.
     
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  4. Weather Man

    Weather Man Persistance Is A Bitch Premium Member Established Member Top Shelf Gentlemen

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    My experience was that service carried the day sometimes and sales carried the day sometimes, but it was the combination of all departments that made it worthwhile. I have also heard it said many times the reason you want a franchise is to sell used cars, LOL.

    I think a stand alone service center would have a much tougher life than one attached to a dealership.
     
  5. TAF

    TAF Trilogy Twin Screwed #004 Established Member

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    Whatever Hoser...

    Costco sells MORE cars annually than any "Dealer"...and their growth in sales is better than ANY "Dealer"...

    Dealers will be GONE...sooner than you think.
     
  6. Weather Man

    Weather Man Persistance Is A Bitch Premium Member Established Member Top Shelf Gentlemen

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    Really?

    When you shop for your own car, you can go anywhere and visit any dealership to get your best deal. With Costco car buying, you only have access to one dealership per brand in your area. That’s because Costco exclusively works with one participating dealership for each brand.


    If that wasn’t enough, they also work with a small group of salespeople from that dealership. That’s right; only some of the sales staff are authorized to help customers through the Costco auto buying program.
     
  7. 13COBRA

    13COBRA Resident Ford Dealer Premium Member Established Member

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    Yep, that's excellent.

    Service is about 30-40% gross...and out of that gross, they retain about 50% of that at the bottom line.

    Sales is about 3-4% gross (max)...and out of that gross, they retain about 18% of that at the bottom line.

    I'd MUCH rather have a standalone service department than a standalone dealership.

    There are 785 Costcos across the United States. In 2018 they sold 650,000 cars. That's 828 cars per Costco, or 69 cars a month, per location. That's laughable haha My small store outsells that. If I had 784 other locations, I would eclipse that.

    Not to mention, Costco gets their vehicles from dealerships haha
     
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  8. TAF

    TAF Trilogy Twin Screwed #004 Established Member

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    UH...WRONG! but...thanks for playing..."lol"
     
  9. jeffh81

    jeffh81 Here’s KingBlack Established Member

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    Out of curiosity, have you ever used the USAA buyer service?
     
  10. SonicDTR

    SonicDTR Wasn't me. Established Member

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    That is discontinued btw, just checked a few days ago.
     
  11. Weather Man

    Weather Man Persistance Is A Bitch Premium Member Established Member Top Shelf Gentlemen

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    I never did.
     
  12. jeffh81

    jeffh81 Here’s KingBlack Established Member

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    @13COBRA for some reason my local dealer is overflowing with Mustangs right now. They typically keep about a handful of GTs with a few ecos sprinkled in, but i counted at least 10 and 10 last night, the F150s are climbing up in numbers, but nothing like they used to. The big saler for them is the STX package.
     
  13. jeffh81

    jeffh81 Here’s KingBlack Established Member

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    wow im shocked by that. I heard they did a good job
     
  14. Weather Man

    Weather Man Persistance Is A Bitch Premium Member Established Member Top Shelf Gentlemen

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    USAA got bought out a while back, haven't heard it was a great thing to happen.
     
  15. Weather Man

    Weather Man Persistance Is A Bitch Premium Member Established Member Top Shelf Gentlemen

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    Costco says itself they get the cars from local dealers, so how "wrong" ?
     
  16. VRYALT3R3D

    VRYALT3R3D Well-Known Member Established Member

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    He never explained why he thinks OEMs owning dealerships is better for them either. I think its cute that he thinks the OEMs want this and NADA will just roll over and let this happen.
     
  17. jeffh81

    jeffh81 Here’s KingBlack Established Member

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    man that explains a lot lately. Im probably gonna shop insurance rates soon then
     
  18. 7998

    7998 Trying To Be More White Established Member Malt Liquor Mafia

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    So in this 9-12 months you've noticed "A LOT" of people trade more often than they ever have? I'm not saying your bullshitting but I am genuinely curious how you've come to that conclusion.
    If people are trading more often I would assume your used inventory is up ytd, therefore considering the hot market conditions your new and used sales must be up ytd. How much are they up on average monthly over last year?

    Like I said in my original post I'm sure the increase in your average net per unit is welcomed and good for you but, it won't last. It's a flawed short term plan. The lumber industry tried it last year when a 2x4 went from $3 to $8. They got greedy and the big builders and suppliers told them to sit on it and their inventory grew until they had to dump it.

    Ford could take their GT500 sales plan and make 100 F-150's a year and sell them for $100k a piece but they're going to start losing their discounts on glass, tires, etc. because RAM or <Insert competitor hungry for business> is going to fill the void. This practice has been tried countless times throughout history, and all the manufacturers swear to to the alter of profit but the beauty of capitalism always wins.
     
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  19. nxhappy

    nxhappy Well-Known Member Established Member

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    IMO cars will stay at the same level, slightly higher price. Trucks and SUVs continue to rise. With COVID more people need to tow toys, therefore more demand. Right now used trucks and SUVs are over 20-30% what they used to be. Also, I predict more demand for gas savers and hybrids. With dumb **** in office, we will see higher fuel prices, and more demand for the gas savers. So I guess you could say a higher demand all across the board.
     
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  20. RedVenom48

    RedVenom48 Ghost Editor-in-Chief Premium Member Established Member Beer Money Bros.

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    I wonder if they will **** with E85 subsidies...
     

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