There is low inventory of both new & used cars and this is causing prices to rise all across the board. #YTMoneyShorts #Shorts
In some states, car dealers have inventory levels that are 25% lower than their normal inventory rates. And, guess what?
Car dealers and manufactures actually like the fact that you have to wait to get your new car.
Because of the events over the past year, production of new cars actually went down; and now as consumers are coming back to buy--they're finding fewer cars.
Dealers are saving money because fewer cars on their lots mean that the dealers have to pay less in their bridge loans.
Instead of offering the steep discounts to clear out older inventory, many automakers are having a hard time resupplying dealer lots with enough inventory.
Edmunds estimates the average discount on a new vehicle in October was $2,046, about 23% lower than last year.
So, how do you this business news you can use: Understand that lower inventories on car lots mean that you're going to pay more for used as well as new cars.
second, dealerships are finding out that it's more profitable to keep less cars on their lots and, inturn, they're making more money.
https://fred.stlouisfed.org/series/CUSR0000SETA02
https://www.cnbc.com/2020/11/23/car-buyers-seeking-black-friday-deals-on-a-truck-likely-out-of-luck.html
In some states, car dealers have inventory levels that are 25% lower than their normal inventory rates. And, guess what?
Car dealers and manufactures actually like the fact that you have to wait to get your new car.
Because of the events over the past year, production of new cars actually went down; and now as consumers are coming back to buy--they're finding fewer cars.
Dealers are saving money because fewer cars on their lots mean that the dealers have to pay less in their bridge loans.
Instead of offering the steep discounts to clear out older inventory, many automakers are having a hard time resupplying dealer lots with enough inventory.
Edmunds estimates the average discount on a new vehicle in October was $2,046, about 23% lower than last year.
So, how do you this business news you can use: Understand that lower inventories on car lots mean that you're going to pay more for used as well as new cars.
second, dealerships are finding out that it's more profitable to keep less cars on their lots and, inturn, they're making more money.
https://fred.stlouisfed.org/series/CUSR0000SETA02
https://www.cnbc.com/2020/11/23/car-buyers-seeking-black-friday-deals-on-a-truck-likely-out-of-luck.html
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