Quote:
Originally Posted by TheBingoBalls
Not surprising. And I really hope manufacturers don't go back to the pump-and-dump way of doing things with inventory. Maintain production to satisfy demand but don't over produce and throw it all on the dealer. Manufacturers would have less advertising, incentives, logistic expenses and capitalize on financing. Manufacturers are happy that they're still making a profit, dealers are happy not having to deal with all the constant logistics, floor plan and having to deal with increased inventory.
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I dunno about this, the "overproduction" of inventory is part of the market balance between consumers and franchise dealers. Your local franchise, because they have legal territory and competition protections in place by state laws, have little incentive to not try to to screw the consumer at every opportunity. It's not like bmw can say "hey this dealer is treating my customers like trash I am going to set up a quality dealer next door to protect our brand"
The only good weapons they have are dealer volume incentives and by ensuring plentiful inventory make it easier for a customer to move on to the next dealer out of territory and dealers compete with each other for incremental sales. In todays market dealers within a brand aren't really competing with each other.
I am surprised that the current car buying environment didn't create a bigger push from consumers to abolish the franchise protection laws and let every brand go direct to consumer like Tesla. I assume it just because so few people have a clue.