Dealers scramble to deal with growing new-car inventories

1 May
A Honda dealership in Erie, Penn. Abandoned factories, forgotten shopping malls, and undeveloped parcels of land have become parking lots full of new cars as dealers try to figure out what to do with mounting inventories of unsold vehicles. As of April 1, dealerships in the U.S. had 4.2 million unsold new cars waiting to find buyers, Automotive News reported Tuesday. Although the...

Car dealers saddled with least demand, most inventory since Great Recession

13 Mar
Scott Robinson Honda dealership, Torrance, CaliforniaThe amount of time it would take new car dealers to sell off their inventories is at the highest level since the Great Recession, Automotive News reported Monday. New-car dealers in the U.S. had more than 4 million unsold vehicles in inventory at the beginning of March, which translates to a 79-day supply. Calculated using the number of unsold...

Startup electric-car builder Rivian’s CEO sees a different future for dealerships

6 Dec
Rivian R1T electric pickup conceptRivian made a splash at the 2018 LA Auto Show after it debuted the R1T electric pickup truck and R1S electric SUV. Although the startup automaker plans for two vehicles that are far outside the norm of legacy automakers, the company's CEO still sees a future for dealerships, albeit a modified one. RJ Scaringe, Rivian founder and CEO, told Motor...

California car dealers take on Volvo over subscription service

5 Dec
2019 Volvo XC40 T5 AWD R-DesignCalifornia new-car dealers have asked Volvo to cease its Care by Volvo subscription service and allege the program violates the law. According to a letter from Brian Maas, President of the California New Car Dealers Association, the service may illegally engage in the practice of "payment packing" for consumers. Automotive News (subscription...

Survey: Appraising your trade-in online makes for a smoother haggling process

30 Dec
Hot Wheels Camaro LineupNearly three-quarters of new car buyers go online to get an idea of what their trade-in vehicle is worth prior to going to the dealership, and almost two-thirds of those estimates are accurate, according to a recent survey conducted for Automotive News. In other words, about half of all car buyers walk into a dealership with a rough understanding...

New car dealers not as profitable as they once were

24 Oct
Buick and GMC dealershipDespite record new car sales and higher average transaction prices, new car dealers aren't the cash cows they once were. The National Automobile Dealers Association (NADA) released its midyear report last week, and it’s not great news for dealers as intense competition eats into their earnings. MORE: Study: Most families in America can't...