Car Dealer Daily

With the recession dramatically influencing auto sales, it isn’t only the Detroit Big Three, or the Japanese Big Three, hurting for more sales. Potential buyers of premium auto brands are also thinking twice about buying new cars.

The hottest, priciest, and most luxurious cars have also faced the wrath of a shaky economy. Even the most prized brands have faced falling sales. But it isn’t just autos either. Consumers are simply staying away from premium products across the board.

At the first sign of slipping car sales, many assumed that the luxury car market would be unharmed. It was expected that wealthy buyers would not be subject to the adverse conditions that have kept consumers from visiting Chevrolet, Ford, or Toyota dealerships. Unfortunately, the assumption was not accurate, as luxury car sales, according to Autodata, have fallen about 19 percent this year. From Lexus, to BMW, to Mercedes-Benz, steep losses have been felt,  says one Acura dealer Pennsylvania, as fewer buyers can afford the bells and whistles that come with these luxury brands. Even the top echelon of premium brands, such as Bentley and Aston Martin, have also faced global sales slump, which has also fueled substantial layoffs.

While widespread layoffs are occurring, and wealthy types being forced to forgo lucrative bonuses at the very least, it’s no wonder why premium car sales have been hit hard. But while some dealerships may be struggling to get by, others such as Denver Land Rover dealers have the luxury of having a long-established business and a well-known name to get by while sales nationwide suffer.

Although premium new car sales have been shaky at best, there is a silver lining for some. Premium used car sales among New Hampshire Volvo dealers and Philadelphia used car dealers have actually increased. Mercedes Benz Pittsburgh says luxury buyers don’t want to give up the premium brand, but they do want to spend the normal gobs of cash to get it.

The automotive market in general is in a dismal state, and there’s more to it than just building the wrong cars. Many claim that the biggest problem with the Big Three is that they have produced the wrong types of cars. Yet at Los Angeles harbor, loads premium cars remain unsold and awaiting shipment. Luckily for premium automakers, they have the cash to get by. Unfortunately, like the Big Three, many premium dealers may not have that luxury. Continue reading ‘Luxury Dealerships Face Sales Slump’

Over the years, car dealers have become synonymous with less than honest sales tactics. Consequently, the information that dealers provide during a sales deal is usually not taken at face value. With the seemingly sly nature that car dealers have been associated with, consumers think that the dealers profit much more than they actually do.

Recently, the National Automobile Dealer Association (NADA) conducted a survey examining the profits of car dealers around the country. The survey found that only one and a half percent of car sales yielded a profit, while more than 20% of dealers reportedly lost money. Another finding in the survey was that foreign auto dealers are faring somewhat better in the current market place than dealers of domestic cars.

Needless to say, car dealers have many new challenges. Consumers have more choices than ever, and the economy and price of fuel has contributed to an abrupt shift in buying habits and demands. For example, among dealers selling domestic makes such as Detroit Chevrolet Dealers, inventory of full-size trucks and SUVs like the F-150 and Expedition generally had no trouble selling in recent years, but in recent months have been increasingly difficult to move off the lot, even with attractive incentives. Instead of new car buyers gravitating towards large vehicles and sport utility vehicles, consumers are now looking to small, efficient cars and crossovers. Those dealers that sell brands with a full lineup of economical and even “green” offerings are therefore reaping more of the benefits.

But even dealers with plenty of hybrids or high MPG models are not on stable ground as nationwide car sales are down overall, with June marking the lowest point in auto sales in over a decade, and each subsequent month not being much better.

In such an adverse environment, car dealers such as our Saint Louis Mitsubishi are changing their ways in order to stay profitable. Dealers are reducing the amount of new hires, reducing customer perks and the availability of loaner cars, and streamlining operations to help save money.

In addition to generating less money than what’s perceived by consumers, much of the money auto dealers do make on a vehicle goes back into the dealership according to Los Angeles Toyota dealers. Like most businesses, income needs to be reinvesting back into the business to help it grow, whether it means new facilities, employee benefits, or increasing inventory. Revenue from an entire sale is not simply pocketed by the sales person involved.

The dramatic changes in the automotive industry have caused car dealers to have vastly different operating strategies. Rather than new cars being the main profit center, dealers are now promoting service centers more and more as they now provide a more steady flow of income. In addition, Texarkana Used Car dealers and other dealers are focusing on their used car inventory more so than their new vehicle inventory.

This is not intended to defend all dealerships and their practices. The important thing to remember is that consumers should do their homework and utilize resources such as Edmunds.com or Kelley Blue Book to understand what a vehicle really costs and try to get within reason of that price point. Make sure you focus on your deal and feel good about, and don’t worry what the dealer potentially is or isn’t getting on his end. Continue reading ‘Car Dealerships May Not Be As Profitable As Consumers Think’

Over the past several months, car sales have reached historic lows. Car buyers are not only buying smaller and more efficient vehicles, but due to the weakened economy and high gas prices, consumers are buying few cars overall. Luckily, August auto sales appear to be slightly higher than the dismal July sales figures.

General Motors has seen buoyant auto sales thanks to their latest promotion, offering the average consumer employee pricing. In addition, many analysts are still forecasting an improvement even though overall sales remain down. GM’s latest sales incentive, a popular incentive among Chevy dealers Chicago shoppers, will bring the cost of a GM vehicle about ten percent below the invoice prices, although the discount varies by individual model.

Auto sales in the US reached a 16 year low in July, with most automakers reporting double-digit declines. Despite these sales decreases, Honda and Nissan where among the few automakers this summer that reported sales increases, especially at Nissan Boston MA where the compact Versa was particularly in high demand.

A weakened consumer confidence has kept potential car buyers away from dealer lots in recent months. Those who are buying new cars are looking at fuel efficient vehicles. With the credit crunch, some buyers are
also finding it harder to finance the vehicles that they are looking at says Auto Loans Volvo Passaic.

Most car dealers have seen full-size truck and SUV inventory sit unsold for longer periods of time. With greater interest in smaller vehicles, car dealers are demanding additional compacts and crossovers. In response to demand, automakers have actually reduced production of large trucks and SUVs, and have also held off redesigns of such vehicles. Dealers such as Richmond Used Cars as well as Dodge Financing Memphis are also pushing pre-owned inventory as a more value-packed alternative to new cars. Meanwhile, Toyota Dealers Orange County whose inventory of Prius hybrids are selling strongly as consumers are craving fuel efficiency.

Luckily for car dealers, the price of gas began to decline during the month of August. Although the price of gasoline is still more than 30 percent higher compared to a year ago, the decline will likely help improve auto sales. Although the August ends with some good news, analysts predict that it will be years before the truck market rebounds. Continue reading ‘August Auto Sales Appear Higher’