November 17, 2021
A Bonanza of Profits
2021 has been a crazy year in the car business. Chip shortages mean that manufacturers are not able to build their normal inventories. The New York Times tells us that across the board, automobile manufacturers are seeing a decline in sales volume. And a decline in sales volume means a decline in profit. Uh, not so fast:
“Despite the shortage, automakers and dealers alike are reaping hefty profits because tight inventories have forced consumers to pay higher prices.”
Prices are being raised to crazy levels. One of my old sales managers told me the other day that General Motors dealers are paying $5000 over MSRP just to buy inventory from other dealers. In short, WHOLESALE prices are $5000 over sticker.
Your local car dealership is having an absolute field day right now. From Automotive News
“With vehicle prices rising amid inventory shortages, profits for the average U.S. auto dealership nine months into 2021 are on pace to soar past the annual record set last year. According to the National Automobile Dealers Association, the average U.S. dealership recorded net pretax profit of $3 million through September. That was more than double the $1.3 million in net pretax profit reported for the first nine months of 2020. And it's already well above the $2.1 million in net pretax profit recorded for the average dealership for all of 2020, which itself was an all-time record annual profit.”
If you dig into the data, your local car dealership will make twice as much net profit in 2021 as they did in 2020. And remember, 2020 was a record year for them.
“It’s a bonanza for the dealers and the factories, despite the shortage of inventory,” Mr. Haig said.
A Bonanza. Boy, reading that makes you want to run out and buy a car right now doesn’t it? Of course not. It wasn’t very fun buying a car pre-pandemic, and now it is grueling. But, it doesn’t need to be difficult. It doesn’t need to be a hassle. What if it were easy to buy a car today? What if you had people doing all the work for you? What if, instead of it being a “bonanza” for the dealership, it was a breeze for you?
We do all of that for you. All the legwork. All the negotiating. All the running around. You don’t even speak to the dealership until we are signing papers with them. You never go to the dealership. We do all that for you. We handle all the logistics of buying a car for you.
And we do all the negotiating for you and it won’t be a bonanza for the dealership. With our 25 years of experience running car dealerships, we know what they are going to do before they do it. We taught them their tactics and so they simply do not work on us. I want to say that again: All those “sales strategies” that you hate to deal with mean nothing to us. NOTHING.
You have more leverage in the car buying process than you are being led to believe. You want us on your team because the dealership wants a bonanza while we want you to get a great deal without any hassle. 25 years of knowledge and a dedication to making this process enjoyable to you are what we bring to you.
If you are interested just give us a call at 737-245-1275. We take pride in helping you.