Quote: (01-10-2016 09:33 PM)el mechanico Wrote:
Hotwheels the Dodge dealer that was there got shut down by Chrysler/Dodge but they were very good but not big enough.
Yeah, I read that earlier. A lot of them got shut down as did a number of Chevy dealers that surprised me.
Not sure how most are doing it down there now, but a lot of new car dealers have gone to a smaller new vehicle inventory to turn it faster to avoid paying so much floorplan. The holdback on GM's is good for around 120 days IIRC, so essentially it can sit there for four months with no out of pocket investment . After that the dealer starts paying forit, so obviously the faster you turn it the better.
Some dealers floorplan their used inventory as well and will turn them fast. Even without floorplan, instead owning the vehicle, you don't want to sit on the investment for long. Anymore if a unit doesn't move in a month it goes to the chute. Sometimes if it's a high end trade it never hits the lot, rather it goes straight to the auction. Occasionally, something like a Mercedes AMG something or other might get traded on a Vette. In those situations we get a Mercedes dealer on the line and they set the trade value and buy it outright. (That's what we do anyway. No market for high end used here, just new)
Basically, from what I have seen dealerships have trended smaller when it comes to inventory size. The shop/showroom has stayed the same or gotten bigger. Maybe it's different down there.
A single lot with 500+ vehicles has become unusual.