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Just an update on the dealer level on latest developments.
Figured I throw this out there to just inform people of current conditions of the market on the dealer side.
Looks like we are in for even crazier times(at least for the near future).
Watching auction yesterday for the Dallas area.. Now we have the rental companies paying thousands over MSRP for NEW inventory being sold directly to auction.
Why, you may ask?
To them it doesn't matter as they just increased the daily rental charge and turn profit for a couple years then sell back into a hot market.
They literally are running the market higher.
Hopefully owners of dealership thread water carefully. They can easily send any new car to auction and sell for thousands over MSRP and not have to pay commission to any other person, who would normally be involved in a deal.(Goes directly to bottom line profit).
For those unfortunate to have owners who send all inventory to auction it will cripple that sales team. All aspects not just sale personal.
I have never in my history of selling cars see Kia Rio's/Forte's selling for 4k over MSRP with less than 1,000 miles. Sorento's are selling for 7k over MSRP. (Being bought out by rental companies).
This is just from what I see on Kia's side but I am sure this is going on industry wide.
Fingers Crossed we make it through 2022 okay with all the house of cards we are building on.
Anyways thanks for reading and Happy New Years!
Figured I throw this out there to just inform people of current conditions of the market on the dealer side.
Looks like we are in for even crazier times(at least for the near future).
Watching auction yesterday for the Dallas area.. Now we have the rental companies paying thousands over MSRP for NEW inventory being sold directly to auction.
Why, you may ask?
To them it doesn't matter as they just increased the daily rental charge and turn profit for a couple years then sell back into a hot market.
They literally are running the market higher.
Hopefully owners of dealership thread water carefully. They can easily send any new car to auction and sell for thousands over MSRP and not have to pay commission to any other person, who would normally be involved in a deal.(Goes directly to bottom line profit).
For those unfortunate to have owners who send all inventory to auction it will cripple that sales team. All aspects not just sale personal.
I have never in my history of selling cars see Kia Rio's/Forte's selling for 4k over MSRP with less than 1,000 miles. Sorento's are selling for 7k over MSRP. (Being bought out by rental companies).
This is just from what I see on Kia's side but I am sure this is going on industry wide.
Fingers Crossed we make it through 2022 okay with all the house of cards we are building on.
Anyways thanks for reading and Happy New Years!
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