A competitor needs to offer discounts equal to the amount Off Lease took as a deposit, proven by an sales order between Off Lease and a customer.
This dealer then needs to sell inventory and not replace it.
Eventually others will follow and this will cause a buyers market. Sellers won't be able to offload used cars to dealers; it's more difficult to sell to private buyer. This will lead to a market glut and put downward pressure on prices.
Some private buyers will benefit directly from the price cuts, but soon enough prices will fall and bulk buyers will reenter at new, lower wholesale pricing.
Well, it’s okay.
Just buy a new electric car. They’re cheap right now...
The semiconductor shortage did not help things.
Pretty big in Florida news ping.
Looks like Bidenomics has killed another business.
5 locations? That’s tiny.
Rick Hendrick has about 100 dealerships.
Approximately two years ago, hubby and I had reason to travel to a town about hundred miles away. On the outskirts of one small town in the middle of nowhere we came upon a field of hundreds of cars. All brand new cars with the sticker labels clearly attached to the windows of each one. As I said, this was way out in the middle of nowhere and the field was surrounded by cow pastures. Meanwhile, we are hearing on the news about the extreme shortage of new cars available due to supply chain problems caused by the ‘pandemic’.
Fast forward to last week and we once again had to travel to that town. In the same field was once again hundreds of brand new cars (obviously not the same ones since they were all shiny and brand new). After we traveled past and then reached the small town nearby, I noticed the car dealership itself had very few cars on its lot as if to give the impression they only had a few cars available (buy one today—before they are all gone!).
So why would there be hundreds of cars parked in a field near a cow pasture a few miles on the outskirts of town? Do dealers just keep one “representative” car of each model on their lot and then let potential customers know there are plenty more where that one come from (or direct them to the field if they want to choose from different colors)? Any thoughts?
Poor business management. You need to keep ahead of the market requirements or at the very least keep even with it.
Off Lease Only, a used-car retailer that ran six dealerships in Florida and Texas, filed for bankruptcy after shutting down, succumbing to the pandemic-fueled rise in used-car prices and fresh competition from traditional dealers that had jumped into the secondhand market.
The private company, owned by alternative investment firm Cerberus Capital Management and its founders, closed its operations when its liquidity dried up following deteriorating performance and after online bank Ally Bank tightened the terms and conditions...
https://www.wsj.com/articles/cerberus-backed-car-dealer-shuts-down-in-bankruptcy-6e182aba
https://en.wikipedia.org/wiki/Cerberus_Capital_Management
“We’re going out of business. Everything must go.” I can see endless commercials. Of course they will end up opening in another name, and start all over. Furniture and used car salesmen. Go figure.
Don’t worry. it’s coming. over leveraged dealers will start falling in larger numbers soon.
car sales are down. way down.
I bought my Mercedes at the Lake Worth location. Not a bad deal, if you can accept slightly damaged cars for a reasonable price.