Advice from Tommy Gibbs
Here’s some really great insight and advice from Tommy Gibbs, an industry expert.
The chatter from a lot of dealers I have spoken with over the last few weeks is the potential for a glut of cars coming from the Asian carmakers over the next 60 to 90 days.
As we all know the law of supply and demand will kick in with the supply side taking over. If the predictions are correct then the pressure will be put on with lots of incentives coming from both Asian and Domestic producers.
The Asians because they have inventory sitting and want to gain back market share. The domestics because they want to keep pace.
There is no doubt that such movement in the marketplace will impact the value of used cars, especially the higher priced used cars. Make sure you keep a close eye on your average cost per unit in stock and focus on pressing it down.
Since we are also moving quickly towards the fall of the year it’s smart to evaluate what your real used car inventory needs are for the fall and the holiday season. Most dealers wait way too long to get their house in order and they wake up in December with a mess on their hands. Keep thinking fast turn and you will be just fine…just saying, just sharing.