Dealerships Have Gouged Customers With Prices, What Happens Now That Inventory is Going Back Up?
When the pandemic of 2020 hit, we think that it’s pretty safe to say that nobody could have ever predicted the full extent of the waves that would be felt from the complete lockdown of the United States of America. These ripples would travel to pretty much every industry imaginable, even the automotive industry.
Most are familiar with the fact that seemingly every good and service, including vehicle purchases, have risen in cost a ton these days. In the automotive world, it seems as if one of the main catalysts for the price hikes was a supply shortage. The automotive industry wasn’t alone in suffering from such a supply shortage, though, as again, most industries had been impacted in the same way. While it remains unclear just how long these shortages will last in other industries, it seems as if inventory has been on the rise once again in the world of wheels… Finally.
As the pendulum swings the other way, it’s going to be interesting to see where the dominoes fall. When the shortages started to come about, naturally, the price of a new vehicle had skyrocketed because of simple supply and demand. During this time, many dealerships didn’t skip the opportunity to mark up the rides sitting on their lot. Certainly, this had frustrated a fair amount of customers as a great deal of them didn’t feel as if dealerships add much value in the first place, let alone the additional tens of thousands of dollars now tacked on top.
This time, our host at Motor Feed takes a stab at trying to explain where exactly the automotive industry is today. As car lots that were once barren begin to fill back up with new cars and trucks once again, how is this going to impact dealerships and their relationship with customers?
The video below dives into this very scenario as it applies to Ford but I think it’s safe to say that a lot of these concepts can be felt industry-wide.