The 2nd career adventures of Yankee

#1,177
#1,177
txbo said:
Many aren't, some are.

Not many would survive if the average gross profit per vehicle returned to pre-covid numbers.

Some dealers are in the middle of destroying their own business right now.
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The dis-connect will rear it's ugly head when your contigent of owners that feel they need to have a new car every 2-3 years to keep appearances have a dis-heartening pow-wow with the sales manager about who is gonna make-up this negative equity on their next purchase. Especially when the owner is told what their trade-in value is, and they paid a dealer market adjustment that did not increase the trade-in value of their car. same for all these folks eating up 250K 1200SF houses that are truly only worth about 145 in a normal housing market. theres' a new development accross from the office (lowly Baxter, TN) that starts in the mid 200's. Well, there are only 2 house designs in this developement. Both with lots probably under 1/3 acre. I could stand against one house and pee on the other. The smaller house, which looks to be 1200SF max is single level slab house. So that would be the one starting around 250K. $208/sf for a junk cookie cutter house!!!!! These houses were buillt with $10 sticks that are now back around $5 at Lowe's paying retail. Sad thing is that every unfinished house in there already has a sold sign. Every finished house is already occupied. No way pre-covid these houses would have sold over $175K and that's still too much for what they are. By comparison these same style houses at similar sizes and construction were selling in Peachtree City, Ga (Upper scale south ATL suburb) for $90K in the mid-90's. Not sure what the adjusted for price in today's dollars, assuming a normal market, should be, but it would be in the 150-175 range??
 
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#1,178
#1,178
The Honda guy, when we went in for oil change, hit me up and said I could trade our pilot in for equal or more than I paid for it, and they could put me in a new car for equal or less payment. I said, so I can trade you my Pilot and wash out even on the loan, and you can put me in a new Pilot for the same term and payment? Conversation was very short.
 
#1,179
#1,179
GVF said:
The dis-connect will rear it's ugly head when your contigent of owners that feel they need to have a new car every 2-3 years to keep appearances have a dis-heartening pow-wow with the sales manager about who is gonna make-up this negative equity on their next purchase. Especially when the owner is told what their trade-in value is, and they paid a dealer market adjustment that did not increase the trade-in value of their car. ...
Click to expand...

The negative equity won't be that big of a problem. Most vehicles aren't being sold for 10's of thousands over sticker. Most are a few grand over. You're also likely to not see a sudden bubble burst in the automotive market. That would require manufacturers to quickly produce about 4 million more cars per year. It's going to take several more years before you see significant ground stock on dealer lots,
 
#1,180
#1,180
txbo said:
The negative equity won't be that big of a problem. Most vehicles aren't being sold for 10's of thousands over sticker. Most are a few grand over. You're also likely to not see a sudden bubble burst in the automotive market. That would require manufacturers to quickly produce about 4 million more cars per year. It's going to take several more years before you see significant ground stock on dealer lots,
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I don't even know that the manufacturer's are that motivated to get it back to the way it was. They're making more per vehicle than they ever have (little to no rebates, lots of demand).

I don't think you'll ever see 150+ new vehicles on a lot again
 
#1,181
#1,181
I certainly imagine that they may do it how they do in other countries. Keep a handful of inventory on the lot for test drives and people in a tight spot, and then you place an order and a month or two later your shiny new automobile arrives.


It is remarkable that in 2022, I bragged about buying a car at MSRP, but it’s the world we live in.
 
#1,182
#1,182
Nerd-Vol said:
I certainly imagine that they may do it how they do in other countries. Keep a handful of inventory on the lot for test drives and people in a tight spot, and then you place an order and a month or two later your shiny new automobile arrives.


It is remarkable that in 2022, I bragged about buying a car at MSRP, but it’s the world we live in.
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We ordered our new Sube on the July 4th weekend 2021. Picked it up second week of October.

A month would have been awesome!
 
#1,183
#1,183
VolNExile said:
We ordered our new Sube on the July 4th weekend 2021. Picked it up second week of October.

A month would have been awesome!
Click to expand...

That’s about 3 months. For the middle of the pandemic, that’s not awful.

In 2019 I had a dealer switch an allocation with another dealer, and the wait was about 1.5 months.
 
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#1,184
#1,184
YankeeVol said:
I don't even know that the manufacturer's are that motivated to get it back to the way it was. They're making more per vehicle than they ever have (little to no rebates, lots of demand).

I don't think you'll ever see 150+ new vehicles on a lot again
Click to expand...
There will be a new normal. Somewhere between where we were and where we are now. Last week I met with a manufacturer's rep that told me their goal was to get to the point where dealers had a 20 day supply in stock. For reference, pre-pandemic the average dealer stock was 60 day supply.
 
#1,185
#1,185
txbo said:
There will be a new normal. Somewhere between where we were and where we are now. Last week I met with a manufacturer's rep that told me their goal was to get to the point where dealers had a 20 day supply in stock. For reference, pre-pandemic the average dealer stock was 60 day supply.
Click to expand...

What are current supply levels looking like?
 
#1,186
#1,186
Nerd-Vol said:
What are current supply levels looking like?
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NADA is reporting a 12 day supply nationally but I haven't seen anything close to that in over 2 years. They pull their data based on month end inventory. That doesn't account for last minute deliveries which are largely presold. I have less than a 1 day supply on all of my lots.
 
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#1,187
#1,187
Man this damn LTZ ain't ever going to get here. Been sitting in the ready yard since August 4th.
 
#1,188
#1,188
I’m looking for a ‘23 Palisade for my wife and it seems impossible to find one without $4500+ dealer market adjustment
 
#1,191
#1,191
ACvol3 said:
I’m looking for a ‘23 Palisade for my wife and it seems impossible to find one without $4500+ dealer market adjustment
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Hallmark Hyundai in Nashville does not sell over MSRP. Ask for Rob P. He’ll take care of you (I bought my 2 Elantra’s from him).
 
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#1,193
#1,193
ACvol3 said:
Thanks! We see one online that we like. Sent an email. Any advice?
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I’d call first thing tomorrow (tell him Darrell referred you). A lot of those incoming are already spoken for. It didn’t take long for available Elantra‘s. Might take a little while for a more popular vehicle like the Palisade.
 
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#1,194
#1,194
GVF said:
The dis-connect will rear it's ugly head when your contigent of owners that feel they need to have a new car every 2-3 years to keep appearances have a dis-heartening pow-wow with the sales manager about who is gonna make-up this negative equity on their next purchase. Especially when the owner is told what their trade-in value is, and they paid a dealer market adjustment that did not increase the trade-in value of their car. same for all these folks eating up 250K 1200SF houses that are truly only worth about 145 in a normal housing market. theres' a new development accross from the office (lowly Baxter, TN) that starts in the mid 200's. Well, there are only 2 house designs in this developement. Both with lots probably under 1/3 acre. I could stand against one house and pee on the other. The smaller house, which looks to be 1200SF max is single level slab house. So that would be the one starting around 250K. $208/sf for a junk cookie cutter house!!!!! These houses were buillt with $10 sticks that are now back around $5 at Lowe's paying retail. Sad thing is that every unfinished house in there already has a sold sign. Every finished house is already occupied. No way pre-covid these houses would have sold over $175K and that's still too much for what they are. By comparison these same style houses at similar sizes and construction were selling in Peachtree City, Ga (Upper scale south ATL suburb) for $90K in the mid-90's. Not sure what the adjusted for price in today's dollars, assuming a normal market, should be, but it would be in the 150-175 range??
Click to expand...
Sounds like a DR Horton development
 
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#1,196
#1,196
YankeeVol said:
I’d call first thing tomorrow (tell him Darrell referred you). A lot of those incoming are already spoken for. It didn’t take long for available Elantra‘s. Might take a little while for a more popular vehicle like the Palisade.
Click to expand...
Wife ordered our ‘23 Palisade from Hallmark today. Thanks for the recommendation!
 
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