Reduced New Car Inventory Results In Record Dealer Profits, Higher Used Car Prices and Increased Stock Value Of Wall Street Funded Used Car Lots
Editor's Note: Pent-up new car demand, Low Inventory at local dealers equals car buyer screwing...could this be a plan to gain acceptance for overpriced new vehicles..."so it's just another 23 per month gotta buy that new car, oh well". Our suggestion is to wait for the supply and demand to go back to the buyers favor before you buy.
There Aren't Enough New Cars For Sale ALLY Financial Says
SEE ALSO: Honda First Manufacturer In U.S. To Break-Out And Seriously Compete In Used Car Space
SEE ALSO: Record Dealer Profits In 2020
SEE ALSO: Don't Buy an Auto in 2020's "December to Forget"
Washington DC December 9, 2020; The AIADA reported that Ally Financial Inc., the largest U.S. auto lender, said carmakers should get busy.
There’s enough consumer demand for manufacturers to ramp-up output of new models but not enough supply, Chief Executive Officer Jeffrey Brown told investors at a conference on Tuesday.
“Factories have to get back to work,” Brown said, noting he’s been in discussions with Rick Hendrick of Hendrick Automotive Group, of Hendrick Automotive Group, which has 95 dealership locations across the country.
“When I talk to his stores directly, they tell me their biggest challenge is lack of new-car inventory. The factories aren’t producing enough.”
Complaining about depleted supply is a common refrain from dealers, but Brown’s comments are a bit of a departure for lenders. Banks have spent years wagging their fingers at automakers for pushing out too many cars.
>Today's lack of reliable inventory is helping to spur business at Wall Street funded new players in the used-car space, such as Sonic Automotive Inc.’s EchoPark and Carvana Co., Brown warned. Read more here (Source: Bloomberg).