Interesting info from dealer about current state of new car market

[JasonTremor]

Stopped by a regional Ford dealer on my way back from business trip today. They had 5 broncos in stock, two of which were new 2022 four door squatch package. One hard top and one soft top. One used two door in the bunch. Was nice to get to see them up close. I inquired about how they came by so many and salesman said they had a broker acquiring them for the dealer. Basically the broker casts a wide net across a region and offers MSRP plus for any unclaimed bronco orders. Broker buys them up then re-sales them to the dealer that placed a order with broker. Dealer in turn buys from broker and puts on lot for sale as "used". He also acknowledged many dealers were receiving new vehicles and immediately running through the auto auction. The independent broker scenario just doesn't stick out as bad to the general public. I was wondering how there were so many "used" vehicles with less than 50 miles on them showing up and having Carfax auction/broker history

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[DonB]

And that's exactly why Ford corporate hates dealers.

 

[JasonTremor]

Sad part is that Ford dealers aren't only one doing it. I've seen examples of Toyota and General Motors dealers doing the same. For the smaller dealers, that don't get over a few allocations for the model year for popular models, this is the only way they can acquire the popular vehicles their customers are asking for. This dealer was that small dealer model just trying to serve it's community while the larger dealers getting proportionately larger allocations are working the system.

 

[Peter949]

In about a year the car market will plummet. Interest rates are high pricing out buyers and defaults with repos will began because people bought cars with the stimilus checks and now can't afford them. Supply chain will eventually catch up.

 

[LostMy65]

I asked that question in another thread. Why are there so many low mile used for sale on CarMax and other dealers. I asked because that's exactly what I suspected.
I guess Ford is trying to do something where it has to stay in the name of the one who ordered for at least 6 months.

 

[LostMy65]

Wait. I guess it's a year.
https://www.google.com/amp/s/fordau...ill-come-with-one-year-no-sale-provision/amp/

 

[Joeiconic]

I frequently drive by a dealer (Shottenkirk) in North Georgia that consistently has about 20 Broncos on the lot. I’m not in the market, so I don’t know how they are selling them, I.e. new or used.

 

[Tako]

Owner of Store A in one state sells new cars of brand X . Same owner, of store B in a different state doesn’t have the rights to sell new cars of brand X. So they open a “used” car lot.

 

[California]

I heard somewhere that the CEO of Intel said that the chip market won't be back to pre-covid supply until 2024. I'm sure glad we bought our vehicles in '19.

 

[Wytchdctr]

I think that is who snapped up the Maverick I ordered then abandoned for the Ranger. It appeared as a used car with a few miles on it at a Toyota place just down the road days later. Someone then bought it at almost 10k over MSRP.. or whatever deal they worked out. The sticker was 10k over.

 

[Dr. Zaius]

I frequently drive by a dealer (Shottenkirk) in North Georgia that consistently has about 20 Broncos on the lot. I’m not in the market, so I don’t know how they are selling them, I.e. new or used.

I've never been to Shottenkirk but I've perused their ads when I was checking Maverick inventory.

They seem to be one of the worst at adding a ridiculous ADM on stuff, enough so that I will never consider buying a vehicle from them.

 

[Tremot Trent]

In about a year the car market will plummet. Interest rates are high pricing out buyers and defaults with repos will began because people bought cars with the stimilus checks and now can't afford them. Supply chain will eventually catch up.

Read articles where this already happening.

 

[troutspinner]

In about a year the car market will plummet. Interest rates are high pricing out buyers and defaults with repos will began because people bought cars with the stimilus checks and now can't afford them. Supply chain will eventually catch up.

Agreed. I am curious to see how sticker prices respond in a couple of years. Sticker prices have far outpaced inflation. The vindictive side of me can't wait to see some dealers shutter.

 

[FusedLogic]

I've never been to Shottenkirk but I've perused their ads when I was checking Maverick inventory.

They seem to be one of the worst at adding a ridiculous ADM on stuff, enough so that I will never consider buying a vehicle from them.

Shottenkirk is where I bought my Ranger this past March and I liked them. There was no markup on it. They had quite a few Broncos on the lot and I asked where they were getting them since they were in such short supply. They said they buy them from "other dealers" from all over at full price! They have to mark them up to make any money at all.

It's hard to have sympathy for dealerships in general but when I put myself in their shoes, I feel sorry for them. It's a low margin business to begin with and with short supply, they can't win. Personally, I'd find another way to make a living.

 

[Jbrubakerjr]

I've never been to Shottenkirk but I've perused their ads when I was checking Maverick inventory.

They seem to be one of the worst at adding a ridiculous ADM on stuff, enough so that I will never consider buying a vehicle from them.

I had the same experience on Broncos, and it also seems to hold true at their CJDR Dealership as well on certain models.

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