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DealersLink®

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Exclusive Blog Posts

​​​​​​​Who's still using Excel to manage their employee development?

​​​​​​​Who's still using Excel to manage their employee development?

To dealership managers, If you're using Excel to manage your employee development process, you are still better than 80% of managers that don't …

MAXIMIZING SALES OPPORTUNITIES WITH BDC TRAINING SCRIPTS AND MORE

MAXIMIZING SALES OPPORTUNITIES WITH BDC TRAINING SCRIPTS AND MORE

Does your dealership have a business development center? Is it producing the level of leads you’re looking for? If the answer to either of th…

[VODCAST] Millennial Car-Tell Episode 3 - Don't Stop Believin'

[VODCAST] Millennial Car-Tell Episode 3 - Don't Stop Believin'

NEW Vodcast Alert: The Millennial Car-Tell is back! Join us for Episode 3, Don't Stop Believin'! (CLICK HERE) We're interviewing our…

Disrupting the Disruptors

Disrupting the Disruptors

In the last several years we’ve all heard the warnings about how the auto industry is being disrupted by online retailers such as CarMax, Carvana, an…

WEBINAR RECORDING - 3 Proven Strategies to Overcome the “Circle of Distrust” in Automotive Retail

WEBINAR RECORDING - 3 Proven Strategies to Overcome the “Circle of Distrust” in Automotive Retail

In this webinar, we had a great discussion with Matt Weinberg, SVP of Consumer Experience at Modal. Watch this webinar recording to learn t…

How Automotive Dealers are Tackling the Inventory Void

It’s no secret that the prolonged global shortage of semiconductor chips needed for new vehicles has continued to escalate, dramatically impacting inventory levels throughout the marketplace. Estimates indicate there will be over one million fewer cars built on a worldwide basis in 2021, and per Glenn O’Donnell, VP of Research at Forrester, the shortage could last until 2023.

This issue was created by a “perfect storm” from the COVID pandemic, where demand for electronic goods, and subsequently computer chips, was intensified. Added to this, multiple supply chain shipping problems perpetuated an intense backlog of needed parts for car manufacturers.

In the words of Jim Farley, CEO of Ford Motor Company, “… (this is) perhaps the greatest supply shock,” he has ever seen.

The point gets further proven by the fact that pre-owned vehicles are appreciating in value – a phenomenon rarely, if ever, seen in the modern era. With less inventory available, demand has skyrocketed, and so have prices.

Dramatic evidence can be seen across dealerships throughout the nation, where car lots are visibly depleted of inventory. Andy Keys, General Sales Manager at Wendle Ford in Spokane, Washington, says, “We are sitting at about 35 new vehicles on the ground of Fords. We usually have 200 to 250.”

So, what are the solutions?

The simplest, but most frustrating answer is time. There are efforts to start making more semiconductors in the U.S., but this will take time to ramp up to meet the vastly depleted supply.

New vehicle production pauses are also in effect. Auto manufactures, including Ford, GM, Honda, Mitsubishi, Nissan, Toyota, and VW have paused production on models which are less-in-demand, and models that require more chips. While this may help semiconductor manufacturers with the needed time to “catch up” to demand, this approach obviously places additional strains on the auto industry.

The optimal answer is exploring additional and more strategic sources for inventory. Products like online auctions, customer trades, and the DealersLink Marketplace make it easy for dealers to buy quality inventory that their market demands.

“The DealersLink Marketplace enables dealers to see the entire market with transparency, regardless of their business locations. Clients can stock their lots with clean, reconditioned units, locate hard-to-find vehicles for their customers, sell inventory with incurring wholesale losses, and read the market with industry-leading analytic tools.”

  • Travis Wise, Senior Vice President of Sales at DealersLink

 

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