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New Norm: Less Dealer Inventory

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

  1. jvandy50

    jvandy50 Well-Known Member Established Member

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    soooo what happens when everyone runs out of money and people aren't buying cars like it's the last pack of TP?

    i was planning on a doomsday deal for a trackhawk or TRX for 58k OTD and idt it's gonna happen now.

    ...the 22 f250 will be able to power the house you say??
     
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  2. JPD5801

    JPD5801 Member Established Member

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    Or, build the exact vehicle you want on the manufacturer’s site using your preferred dealer’s zip, and it’ll appear on the lot and you can go buy it.

    That’s what happened to me. I spent close to 3 months researching and building cars on Ford’s site. Then, the car I really wanted appeared on my local dealer’s site as “factory ordered.” I went in and started the buying process before the transport hit the lot. It isn’t a guarantee, but if you plan ahead, it could shorten the wait.
     
  3. 13COBRA

    13COBRA Resident Ford Dealer Premium Member Established Member

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    If their inventory is growing, I guarantee their sales are down.

    Well, in 2019 we traded for 51 vehicles (cars and trucks) that were purchased from us in 2018. We traded for 21 vehicles that were purchased in 2018 from another dealership. So 72 total.

    Last year, we traded for 91 vehicles that we sold in 2019, and 43 that were sold by another dealership in 2019. So almost double.

    My used inventory is most definitely not up, neither is new. My used sales was up about 21% last year, while new was down 1.5%. New was much more profitable than it had been in years past due to lower inventory holding costs.

    I'm not even sure what your last couple of sentences is trying to point out...literally no one is saying to produce 100 F-150s.

    Banks loan longer. Every five years, the average car loan lengthens by 6-12 months. It's depressing. In 2012 customers would scoff at financing for 72 months, hell, now that' the norm. There are people financing vehicles for 84, 96, and 108 months. INSANE.
     
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  4. 5.0 Hatch

    5.0 Hatch Active Member Established Member

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    Out of curiosity, what percent of customers pay cash? Also, what is the average monthly note you're seeing these days?
     
  5. 13COBRA

    13COBRA Resident Ford Dealer Premium Member Established Member

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    Hard to say for the industry as a whole for all of that. I guarantee there are more cash buyers at a Toyota store than a Ford store...just different clientele. As far as the notes go, for city areas where trucks aren't as popular they're probably significantly less than ours, since we majorly sell trucks.

    In the last 12 months are cash deals are at 14%, and the average monthly note (excluding cash deals, since it would show $0 and skew the results) are $612 on new vehicles and $487 on pre-owned.
     
  6. CobraBob

    CobraBob Authorized Vendor Premium Member Established Member Single Barrel Sirs

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    Nick, if interest rates on loans were higher, would you expect to see more leases?
     
  7. 1 Alibi 2

    1 Alibi 2 If not today, when ?????? Established Member SVTP OG 4 Life

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    I haven't bought anything off a lot since the late 1980's.
    I also haven't had a car payment since the early 1990's,.............it's just the way I do business..
     
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  8. 13COBRA

    13COBRA Resident Ford Dealer Premium Member Established Member

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    Yes and no. The lease money factors will go up as well, so it won't make that big of a difference. The determining factor between buying and leasing is the residual, and that's unaffected by interest rates.

    Cool story, bro.
     
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  9. sleek98

    sleek98 Well-Known Member Established Member

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    $612 for 72 or 84/96? That sounds super high, but its really only a 40k car.

    edit: have you sold any Mach-e yet?
     
  10. RedVenom48

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

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    Wife and I built her Bronco on the website last night. After all was tallied, payment for a 72 month loan was over 800 a month. That was a base Bronco 4 door, v6 with hard top and Sasquatch. .... I felt bad because I could see the disappointment in her face. Total before tax, title and reg was nearly $48k... these things are not cheap.

    She may need to be happy with a 2 door 4cyl Sasquatch to make a payment work. But we have the Excursion for the baby so a 2 door could work.
     
    Last edited: Feb 23, 2021
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  11. T56LS102

    T56LS102 Active Member Established Member

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    @13COBRA Nick, you opened a can of worms my friend, tons of questions from everyone because of this post! lol
     
  12. 13COBRA

    13COBRA Resident Ford Dealer Premium Member Established Member

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    $612 for an average term of 69.3 months.

    Yes, delivered one already. I have one in stock but it's mandated to go into service loaner program until 4,000 miles or 120 days. I have two prospective prospects on it when it gets out of service.

    Yep. I ordered a Wildtrak 2-door for a guy...had an MSRP of $60k.

    Always welcome though! I enjoy helping car enthusiasts get information that they normally wouldn't have a way of getting.
     
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  13. hoamskilet

    hoamskilet Well-Known Member Established Member

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    This all sounds like I'm gonna need to find a way to keep my truck rolling until it just can't anymore lol

    Sent from my SM-G975U using Tapatalk
     
  14. 13COBRA

    13COBRA Resident Ford Dealer Premium Member Established Member

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    What are you driving now? Year, make, trim, miles?
     
  15. DSG2003Mach1

    DSG2003Mach1 Premium Member Premium Member Established Member Single Barrel Sirs

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    so do they cover the financing/floorplan/whatever until hits one of those numbers?
     
  16. 13COBRA

    13COBRA Resident Ford Dealer Premium Member Established Member

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    No, not directly haha

    On some vehicles they pay $1,000 when you put them into loaner service, then $250 after 30 days in service, and $250 after 60 days in service.

    On the Mach-Es, they pay $250 after 30, and $250 after 60. Nothing up front.
     
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  17. Weather Man

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

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    Had my F-150 oil changed today and walked the lot. This dealer used to have all F-150 courtesy vehicles, now all converted to small SUV. Pickup inventory was crushed compared to normal.

    No shock that people may hold onto what they have to wait for better selection. I think that reality is starting to hit home. Could be a rough couple of quarters for the car biz. Used car auctions may get crazy again as dealers fight for inventory.

    Auto dealer stocks fall as part of broad auto sector decline
     
  18. DSG2003Mach1

    DSG2003Mach1 Premium Member Premium Member Established Member Single Barrel Sirs

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    wonder if the value on my old beater has gone back up any :rolleyes:
     
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  19. Rb0891

    Rb0891 Premium Member Premium Member Established Member

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    What is this I have seen on the new financing option for the Mach E, a leaseback or something so the owner can get the tax credit and an incentive for using it?
     
  20. 13COBRA

    13COBRA Resident Ford Dealer Premium Member Established Member

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    Do you have any more information on it? I haven't heard of that.
     

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