theroberthogan
What is this fresh hell?
- Joined
- Oct 22, 2008
- Messages
- 388
That's some excellent business acumen right there Rich.
For used cars, I would look into private sales only. I think right now used-car sales are selling well at retail and auctions.
I'm curious to see if there will be any significant price reductions on new car sales on closing dealers? On one hand, they have inventory to sell, but on the other, they are losing the mfg incentives & promos which would offset the price.
Dealers will do everything in their power to sell their inventory before they shut their doors, even if they have to sell below cost. It's better for them to write off a small loss on a car they get out of inventory as opposed to a big loss on a car that sits in inventory.
The excess inventory that the closing dealers have, will be picked up by nearby dealers. I have committed to half of one dealers inventory on June 7th. Other dealers I know are helping others out with their inventory. By the way Jeeps are very hot right now, and getting very scarce. If a dealer calls me for one of my trucks., I'm getting a jeep back!
Rich
Rich, what is the logic behind picking up the extra inventory? I can't imagine that the majority of the Chrysler models are selling well enough right now to have excessive inventory on the lot. Unless you are getting the extra inventory way below invoice or you are picking up some hot models that you can actually move quickly, what's the reasoning?
Due to the situation of not knowing what was coming, dealers for the most part, ordered very light from the start of the year, or just cars they knew would sell well,(ie I only oredered Jeeps one month)so inventory was lower than usual. Since the bankruptcy will delay orders for atleast 8 to 16 weeks, you will need the extra inventory just to have something to sell. Even customer orders placed 4 weeks ago can not be delivered until the court case is done. We are actually doing very well and things are selling. But if you want a Chrysler product within the next 2 to 3 months the inventory will be slim.
Rich