Automotive Industry News That Makes a Point

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A lot of useful information can be obtained, while the average person might not have much interest in automotive industry news.  This would include the reasoning behind why you can’t always find.  Consultants push to listen to their requirements and the customers.  When you look at it theoretically though this proposal would work, there are a few things that are stopping it from happening.

It is not actually the dealers that are dropping the ball most of the time; it is the automakers themselves.  They might not ship what the dealers have asked, instead shipping the vehicle they desire.  This leaves an inventory that is not what they asked or what their customers want to the dealers, situation described in AutoRiff.

This leaves the selection of letting the vehicles sit around or resorting to sell tactics to the dealer.  Those cars that are hard to sell can continue to sit for a while, as no customer may need to purchase them, but they will create problems for the dealer.  You either expect that they have the vehicle.

Continued build up of these vehicles can leave the dealer with absolutely no cars that will fit their customers’ needs or wants.  You will definitely want to figure this in when you head into that local dealership and don’t see a car you want.

Those hard to sell vehicles that continue to sit around are called a “brown banana”, because it’s become overripe and the value has been going down as it continues to sit around.  At this point what can a dealer really do about that problem?

Giving away the cars free, while it might thrill customers, is something that isn’t going to happen.  Even when they knock off a lot of money on the price, they are hurting themselves as dealerships are held to making a certain amount of profit.  If they don’t make that amount of profit, they could be shut down.

Of course dealers could head back to the days when hard sells were being used all the time.  However, that isn’t going to make a customer happy in any way.  Many people hated to see a salesperson walking up them in those days.

You’ve probably had it done before – you know the old “let me see those keys” routine.  They would say they had to look at your car to appreciate it for trade-in, however, once those keys were gone it took some may serious persuasion for them to bring your car so that you might leave.

It was a process that earned a bad reputation in the past to people.  They would wear you down over time, until the sale would be finally agreed on by you.  Would you get a car you weren’t really sure you desired, but you might have put yourself into too much debt.