[powerpress]
Dealers are facing a unique situation in many markets, where consumer demand is actually higher than supply according to Cox Automotive’s Bureau of Economic Analysis and Wards Automotive data. In fact, in this past May, non-fleet sales increased 63 percent after bottoming out in April. Here to break down these insights and discuss new car inventory strategies, is Brian Finkelmeyer, Senior Director of new car solutions at vAuto.
new carOnline shopping volume has increased substantially as many consumers are taking advantage of the compelling incentive offers in the market. Who could have predicted that sales would rebound so quickly in such turbulent economic conditions? However, this steep increase in sales is having an immediate impact on new vehicle inventories.
Obviously, more than 60 days of no vehicle production created serious supply chain challenges. Not only are the OEMs faced with the challenges of employee safety during the pandemic, but their plans to reopen are still in flux. Brian predicts that it will take a solid six months before the new car manufacturing returns to regular production levels.
However, there is a bright spot in this dark COVID-19 cloud. It’s forcing dealers to finally pay closer attention to their new car inventory. Establishing good habits like taking the time to ensure you are stocking fast-moving units, proactively addressing inventory problems, and making sure your online showroom is functioning ta full capacity, are crucial components to thriving in the long-run.
vAuto’s Brian Finkelmeyer Discusses New Car Market Insights and Inventory Strategies