How many Ford dealers have become USED CARS ONLY?

[Commodore]

My Lightning is built and on the way.

However, my dealership is dropping new car sales.

I've heard of two others ...is this a new thing, and WHY?

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[KevinC]

Manufacturers are trying to get tighter control over pricing and some of the mega dealers(Granger/Long Mcarthur, etc) are trying to act like the amazons of new car sales by selling to anyone anywhere. I'm not sure how that's all going to pan out in the long run. If model E really is the future then some dealers may just feel that they're not going to be able to keep up as well. Even decent big city dealers cant get ev techs, how are the small town dealers going to do it.

 

[invertedspear]

I worked tech for a Cadillac dealer many years ago. After the 08/09 recession, I was laid off and shortly after that they went used-only. What lead up to that was the insanity of what GM pushed on them. GM just kept making cars and forcing the dealers to take them, and no one was buying luxury cars in '09, much less an Escalade or Hummer that cost as much as a house at the time. I think they severed ties with GM because they had more stock than they had spots in the lot and if they kept "buying" the cars GM pushed, they would have gone out of business completely.

I don't know that Ford does anything similar as far as pushing cars to dealers, but it does sound like more rules are coming down from ford re: Model-E certifications, and various states pushing EVs for all new sales. If the owner of the dealership is 5-10 years away from retirement, they can make plenty on used cars and ride out these transition years and plan to shut down instead of position themselves for a future they don't really care to have a stake in.

 

[ddimit]

Most car dealers make a better profit margin selling used. There is less accountability to not have to deal with a manufacturer. Other than losing factory-paid warranty work for some, it's not a big loss. Not to mention the past few years with Covid, used car prices went through the roof due to the lack of new vehicles

 

[jimfigler]

none that i have seen

 

[KevinC]

Used car prices peaked last year and are on a sharp decline.

There were numbers out last week saying car loans are at their highest delinquency rate in 30 years. Delinquent cars become used cars for sale which is going to build a glut of used cars for sale and awful interest rates.

The next year is going to be tough for car dealers(and manufacturers) in general.
Their record profit covid years are done.

 

[Count Orlok]

My small rural dealer has very few new vehicles on the lot and has been trying to shift the same 2 MME's for months.

 

[geraulx]

Used car prices finally crashing! Time to snag a sweet used car dealers website list before everyone else catches on. But watch out for those repossession bargains, might come with some emotional baggage.

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