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As almost every Acura dealer I pass by has a vacant new car lot, thought I'd look up to see how many shipments in 2022 compared to 2021. When I bought my 2021 RDX Aspec SHawd in 12/2020 - my dealer had 100 cars on the lot and 30 RDX's to choose from. Those days were good for the buyer and dealer.
Crazy decline in production since then. Not sure how the dealers are staying in business.
Substantial lack of inventory was one of several reasons I could not replace a 2019 Sport Hybrid MDX Tech with a new Acura. This was Nov 2021. Eventually I gave up on Acura and had to start looking at other manufacturers.
Eh, don’t feel bad for the dealers. They were complaining about inventory shortages, then posted record profits when everything came to light. I do feel bad for the ones that stick to charging no more than MSRP who can’t get inventory, but those are few and far between.
Holy S....wonder how this compares to other companies in the 'luxury' category, or whatever you want to place Acura in. Certainly goes with what I saw at the Hendrson, NV dealer lot last week. At first glance, you would have sworn the dealer was out of business. The used car part of the lot was no better though.
Eh, don’t feel bad for the dealers. They were complaining about inventory shortages, then posted record profits when everything came to light. I do feel bad for the ones that stick to charging no more than MSRP who can’t get inventory, but those are few and far between.
Maybe the MFG making more, as they don't have to do incentives anymore. However, for the dealers I have seen, they are cutting back on staff and other items to reduce expenses. Lexus is not much better, as there lot was next door - mostly used cars on the lot that was only a 1/2 full.
Maybe the MFG making more, as they don't have to do incentives anymore. However, for the dealers I have seen, they are cutting back on staff and other items to reduce expenses. Lexus is not much better, as there lot was next door - mostly used cars on the lot that was only a 1/2 full.
That's another thing I'm seeing. I'm not seeing empty lots ... I'm seeing dealers becoming used car lots. Probably before the end of the year, used car prices are probably going to tank. Hopefully chip production increases and getting deals/incentives off MSRP becomes a thing in the next 2-3 years and beyond.
lol... I spoke to someone whose nephew is a car salesman in the Vegas area. They are making tons of money. MSRP markups are very lucrative.
Originally Posted by leomio2.0
Eh, don’t feel bad for the dealers. They were complaining about inventory shortages, then posted record profits when everything came to light. I do feel bad for the ones that stick to charging no more than MSRP who can’t get inventory, but those are few and far between.
Eh, don’t feel bad for the dealers. They were complaining about inventory shortages, then posted record profits when everything came to light. I do feel bad for the ones that stick to charging no more than MSRP who can’t get inventory, but those are few and far between.
Yep, the last 2 years have been a major boon for dealers. Inventory hasn’t hurt their profits one bit.
Dealers are reaping record profits in the past few years. Low inventory, but each new car sold has much higher profit margin. They also cut down on sales staff. There is no negotiation, if you can buy at MSRP you should consider yourself lucky.
That's another thing I'm seeing. I'm not seeing empty lots ... I'm seeing dealers becoming used car lots. Probably before the end of the year, used car prices are probably going to tank. Hopefully chip production increases and getting deals/incentives off MSRP becomes a thing in the next 2-3 years and beyond.
I also read recently that repos are up so they will be entering the used market soon too.
Supply chain issues………just about every manufacturer is in the same boat. Some worse than HONDA.
Good news for the dealer any cars delivered to the dealers are pre sold.
Honda dealer I was in last week was delivering 8 cars that day.
No cars on the lot.
They are aggressively buying used cars and trading up.
Traded a 2019 Ridgeline with 50k miles they paid $5k less than I paid 3.5 years ago.
New Ridgeline was at sticker no add on charges.
40% lower sales volume but 100% higher profit margin makes for more total revenue. The profit margin on a new car last year might have been 4% (a couple hundred dollars above invoice plus kickback plus doc fees) and is now at least 8%, (full MSRP plus kickback plus doc fees plus potential market adjustment.) Yeah, despite the lower sales volume, the math seems to favor the dealerships.
The other wild card in the getting trucks/cars to the dealer is rail and truck transport issues. There has been work stoppages , walk outs and just a shortage of space on rail cars rail cars and shortage of workers in the rail and auto transport side.
I had a vehicle purchased with a VIN assigned in vehicle transit to the dealer. VIN assigned means the car was built. Waited two months…..car never showed at the dealer. Showed in transit. Dealer swapped to a another car that just came in ……that car was built is May.
You can go to any dealer web site and see the cars/trucks in transit. Now most are sold or spoken for………but 3 months in transit is a logistics problem. The local SUBARU dealer said his cars are now 90-120 days in transit……witha few at 180 days.
No the dealer can NOT go to the “ports” or rail yards or storage lots and l pick the cars up.
08-02-2022, 10:18 AM
