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Discussion Starter · #1 ·
I know there are several people here that work for car dealers. My question is does your business suck so far this year. Ours is terrible. I figured last fall that 05 was not going to be good for domestic car sales, but I never figured that the fixed end would be this bad.

What's it like where you are???

Thanks
 

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I work at a bus dealer (completly different from auto dealer) but we have been selling ALOT lately.... Service wise business has been up and down but for the most part it keeps coming in.
 
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All dealers are hurting right now. I sell classics and exotics and our sales are worse then they have been in years. The same goes for new cars and used. Everybody is struggling right now.
 
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devious supra said:
I work at a bus dealer (completly different from auto dealer) but we have been selling ALOT lately.... Service wise business has been up and down but for the most part it keeps coming in.
Everyone is hopping on the bus instead of paying $2.00 a gallon. not surprised.
 

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Damn thats crazy, gas has been slowly declining everywhere for the past 2 weeks or so. In SJ it has risen 40 cents in 4 days.
 

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Discussion Starter · #9 ·
Not trying to be a butthead, but let's not hijack this thread please. I want to stay on topic.
Gas is a problem, but it is not the only reason the car business is in the sewer. Probably affects sales more than fixed ops. The reasons I am asking for is what is affecting FIXED OPS so much?

Appreciate the input.
 
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There are a number of things that are hurting the market. Intrest rates, stock market, gas prices, pretty much the cost of living is going up. When that happens, cars are the last things people think about.

Another thing that is hurting car sales in Ebay. Everybody and their brother is becoming a car dealer on Ebay and it is killing the prices. The average joe dosent go to three of four local dealers and compare prices anymore. He shops at hundreds of dealers on EBay and see's what the cars have been selling for and what they should bring.

Its a number of things that are hurting us. Nothing specific.
 

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I buy and sell cars. I'm more of a speciality place though, not franchise. I've noticed prices falling on what I mainly sell.

Right now cars are not selling, which is why I'm trying to buy right now and stock up and sell when times get better. ALOT of places are hurting right now. Alot of my friend's own franchises Mark Moore (over 20 dealerships known as Bob Moore) Big Red from Big Red Sports and Imports is doing bad on his higher end side which sells Subarus, BMW's, etc but he said his other dealership across the street which is a KIA place is doing real good. It all evens out.

So the conclusion I've come to is that sales are down but it's mainly S.U.V's and sports cars, economy cars are selling like hotcakes with gas prices.

Regards,
Kevin
 

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BARTON said:
Indigo, I absolutely agree with your thoughts on sales. What is killing the service/parts end?
lower new car sales go hand and hand with decline in service. i've noticed that alot of the people who come in for service at the dealership i work for purchased the car from us. they started by getting their warranty work done through us, and stuck with us after their waranties expired, and that makes up a good number of our jobs. the decline in new car sales over the years have brought down our exposure, and the number of people who try us out. at the particular dealership i work at(chrysler and mazda) sucess of new models like the mz3, the mz6 and the 300 are bringing people back to us and service is back on the upswing. on the parts end, fulfilling the needs of service has always been the number one source of revenue, and when service isn't getting as many jobs as they used to, parts in turn suffers just as much.
 
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RossoCorsaItaly said:
I buy and sell cars. I'm more of a speciality place though, not franchise. I've noticed prices falling on what I mainly sell.

Right now cars are not selling, which is why I'm trying to buy right now and stock up and sell when times get better. ALOT of places are hurting right now. Alot of my friend's own franchises Mark Moore (over 20 dealerships known as Bob Moore) Big Red from Big Red Sports and Imports is doing bad on his higher end side which sells Subarus, BMW's, etc but he said his other dealership across the street which is a KIA place is doing real good. It all evens out.

So the conclusion I've come to is that sales are down but it's mainly S.U.V's and sports cars, economy cars are selling like hotcakes with gas prices.

Regards,
Kevin
What dealership do you work at?
 

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If you sold Toyota your sales would have increased, if you sold domestics like GM you would have noticed a decrease. Gas prices are one reason, another is the incentives aren't as good as they were for domestics, the next could be your local economy.
ALOT of people bought new cars while the incentives were great now they are leaning towards gas mileage and imports. It goes in cycles, right now people want to see which way the gas is going, if it drops, they will stick with SUV's, if it stays the same or goes up they are heading to the mileage cars.
Consumer sediment is low right now. The economy heats up it will improve. Anytime you see extended incentives then it stops people hold out seeing they just got a new car recently. Nevermind Ford, GM rely heavily on SUV sales. I would think the recent recalls hurt too.:dunno:
 

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At the Toyota dealership in interior BC (Canada) I'm affiliated with, YTD sales are in line with last year and last year was a SMOKIN year....record actually :) No discounts here either.....new cars = full MSRP.

Also, a Toyota dealer here in sourthern Ontario that I'm familiar with is easily on track to a record year.....very easily :)
 

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This is a widely debated topic, but here is some supporting data from WITHIN the auto industry:

SUV sales are down 24% across the board (source = Automotive News, 04/05/05)

GM rebates are slowing down;

Gas prices are rising;

Passenger car sales have been slowly on the decline for several years;

Cross-over utility vehicles (aka Sport Wagons) are on the rise;

GM's troubles are well known, but with $20Billion in cash reserves, they're far from dead...all they need to do is:
A) Bust the union;
B) Hire educated people;
C) Replace their entire design team;
D) Stop building ugly cars.

The Ford Five Hundred has tanked, but thankfully, the Mustang will do well for them. Who'd have thunk it, given the dismal failure of the retro T-Bird.

All this adds up to the inescapable conclusion that domestic vehicle dealerships are going to feel the pinch and unless they can bolster other revenue streams, i.e. their service drives, we haven't even begun to witness carnage.

If you're selling Hyundais, Toyotas, Nissans, Infinitis or Hondas, you're probably in good shape.

If you're selling BMWs and VW's, you're also hurting.

Of the Big 3, only Chrysler is doing well. Glad I'm not a car dealer, nor do I work for a manufacturer...but I have noticed a spike in resumes I've received from people within these lines of work.
 

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craiglieberman said:
This is a widely debated topic, but here is some supporting data from WITHIN the auto industry:

SUV sales are down 24% across the board (source = Automotive News, 04/05/05)

GM rebates are slowing down;

Gas prices are rising;

Passenger car sales have been slowly on the decline for several years;

Cross-over utility vehicles (aka Sport Wagons) are on the rise;

GM's troubles are well known, but with $20Billion in cash reserves, they're far from dead...all they need to do is:
A) Bust the union;
B) Hire educated people;
C) Replace their entire design team;
D) Stop building ugly cars.

The Ford Five Hundred has tanked, but thankfully, the Mustang will do well for them. Who'd have thunk it, given the dismal failure of the retro T-Bird.

All this adds up to the inescapable conclusion that domestic vehicle dealerships are going to feel the pinch and unless they can bolster other revenue streams, i.e. their service drives, we haven't even begun to witness carnage.

If you're selling Hyundais, Toyotas, Nissans, Infinitis or Hondas, you're probably in good shape.

If you're selling BMWs and VW's, you're also hurting.

Of the Big 3, only Chrysler is doing well. Glad I'm not a car dealer, nor do I work for a manufacturer...but I have noticed a spike in resumes I've received from people within these lines of work.
That's a very good overview Craig!

Funny you mention resumes.....we've literally had the entire sales staffs of the local GM and Ford dealerships apply to our Toyota dealership at one time or another within the past year.....

Also some talk along this line here:

http://www.supraforums.com/forum/showthread.php?t=283003

Although GM is far from dead, it's problems are quite real....busting the UAW union would be, umm, interesting :D
 
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