Dealerships aren’t trying to survive, they are thriving. I spoke to a buddy who runs a 20+ dealer group in the west. Their two most profitable years on record are 2021 followed by 2020. I’m starting to think the Covid supply chain issues were done a year ago, but manufacturers are colluding to keep prices high. After backing out the $9.1 billion Ford made in its stake in Rivian, Ford made $8.8 billion in profit in 2021.
That is a misunderstanding of what is going on. Sure their profits are up, because their labor is down, and their unit prices are up. They have fewer salespeople selling fewer cars but selling the cars for much more profit. Many of us here are buying the bronco because we want to. But people are getting in accidents, their cars are unrepairable, or people get divorced and they have to get a new car, and they just pay the price. Fewer options, but that baseline need is still there. And because the issues are affecting all automakers, there is no natural drive to cut prices.
If you thought salespeople were clueless Before Covid, wait till you talk to the crop of new hires next year.
I worked in dealerships as a consultant for 14 years. I disagree with your assessment that less salespeople on the floor selling less inventory is making the difference. Sure, there are less salespeople selling cars, but other labor is demanding raises. Many of the service techs are demanding 80% more than they made before Covid. The shop labor rates have risen, parts prices have risen, and they are selling available cars for significant markup. The dealership’s fixed costs on the buildings haven’t changed. The net result is record profits.
Service prices are going up as well. There isn't going to be an increase in cost that a company sees that won't come along with increases in price.
Seems like a good case for the prepaid maintenance program on the Bronco. I considered it when I bought my extended warranty, but I don’t see me driving my Bronco (third vehicle) enough to justify the cost.
