年代ay Goodbye To New Car Discounts In the Future

The new car market has been in disarray ever since the supply chain of parts, particularly semiconductors, has been under strain due to the pandemic. As a result, manufacturers are struggling to meet customer demands, be it aFord BroncoorChevrolet Corvette. Some patient individuals have it in mind that it would be better to ride the wave and purchase their favorite car once things have smoothened out and discounts are reintroduced for stock that has not been sold.

If you are one of these people, you may be disappointed to hear that this could be a waste of time as a recent quote from AutoNation CEO Mike Manley suggests that dealerships have no intention of lowering the price of its products. Ever.

年代peaking to investors during an earnings call last week, former CEO of FCA, Manley said, "We will not return to excessively high inventory levels that depress new-vehicle margins. Significant discounting and high incentives can also damage a brand, which is another reason for our industry to balance appropriately supply and demand."

For the sake of profits, this can be seen as a more logical decision as you only produce the necessary amount of cars that are in demand. Companies could do this by incorporating an order-only strategy that ensures that bulk stock can never be an issue. There is a case of vehicles returning to the floor if financing falls through, but as we saw with a recent incidentinvolving a sought-after Bronco, stock is usually snapped up promptly.