Dealers making money again….smells like Nirvana
Stats are for geeks, so if you want the stats goto one of the geek sites. However, if you want to know what’s up…Here’s the skinny…
I am in the car business, have been for years. During which time I’ve learned to judge a dealer’s financial statment by both their undertones and buying habits. When dealers start stealing each others sales staff, running auction prices to the moon, and constantly making jokes=Business be good.
If you ever want to ask a dealer how much money their making, just ask em…They’re dying for someone to simply ask them. Now if you want to know how much money they’re loosing, then they’ll lie. That is until they start winning again, then they’ll say “the store netted 200 grand last month, THANK GOD, we damn sure needed it! This place was bleeding like a ceive last spring (damn wall street)…I thought we were gonna have to shut her down there for a while!”
When I hear that, I think back…well last spring you said everything was fine??
When it’s good, IT’s GREEEAAATTTT and when it’s bad, it’s good!!?!
Nonetheless, it’s time to stop feeling sorry for the car dealer, the ones that are left that is. After the great dealer cull of 2008/09, the strong survived. Unfortunatly there are still a slew of dealers at the party that took a gut shot. They are still running through the woods, banker close in tow tracking their blood trail. These guys are hanging out at the auction like headwound Harry from SNL with the auctions credit manager tracking their every thought. Personally, I see an additional 1000 dealer deaths to occur by frost bite this winter.
How can I sense this you ask? It is because I have limped two miles in those shoes. I took a gut shot (more like a headshot) back in 2005 from an a poor life choice, sat around bleeding frantically for a year, and know all to much of the subject I’m blogging about. (proudly recovered btw:)
For the dealers that are not operating on bank fumes, hitting their numbers, and still have a gig….the future looks so they just ordered a custom paid of new pair of Prada spectacles. The banks/lenders are loosening up, credit is coming around (Thanks Taxpayers), factories are firing up ye ol assembly lines and the US of A is making cars again.
The shades won’t go on until next spring, everyone is still shell shocked from what just occured. People too big to fall, like Lawrence Marshall and Bill Heard, spontaineously combusted in front of my eyes. However, if sales drive on through the winter months with a flat or upward trend then we should see a good 3-5 year good run before the fan gets some fecal matter on it once again.
I see the river boat card coming together where the domestic dealers are back in the black, just like Angus and Malcom Young. We’ll have to wait and see. Obama can take all of the credit.
And no, I don’t believe that cash for cluckers made as big of an impact as the Media reports. I was forcasting a spike in used cars and pent up demand on new striking hard this summer back when I had on my flanel boxer shorts.