Quote:
Originally Posted by aerostar
It's all a temporary band-aid IMO.
Dealers are hiding inventory to create artificially low supply. Don't know how they will deal with the depreciation of the stock that they have off in their storage lots.
|
Highly doubtful. First, I have been to dealerships for our cars and driven buy others, they don't have massive lots to store cars they don't want to sell now. Where are they storing them, and when you tell them you are interested in a car, they only offer the "good inventory"? Then, unlike stocks or other investments that people try to time, cars generally depreciate, and relatively new cars a pretty high rate. If you have a relatively new car that is losing $3k-$5k a year, waiting 6 months to offer it for sale is unlikely to have them come out ahead. Sitting on hundreds of thousands of generally depreciating assets that need to be cleaned and maintained is also very expensive.
As most here say the prices haven't come down, wouldn't it be a great idea to sell them now instead of holding onto this giant inventory that has monthly costs? There isn't a giant used car cartel controlling what each dealer does.