Buick dealers giving up franchises

[daves87rs]

Order a base model, in the color you want, and wait for it to arrive. That way you get what you want exactly, and nobody test drove it.

I was waiting for someone to say that. While it is very true (and something I plan to do for my next purchase) most folks can’t/won’t wait that long for a new vehicle. Especially those who were used to having choice on the lot all these years……

 

[demarpaint]

I was waiting for someone to say that. While it is very true (and something I plan to do for my next purchase) most folks can’t/won’t wait that long for a new vehicle. Especially those who were used to having choice on the lot all these years……

I don't mind the wait to get exactly what I want fresh from the factory. Then there's the added plus of it not being test driven and moved around the dozens of times while it sat in inventory. I was always able to get a better deal on an order, orders don't burn up floor plan money sitting in stock.

 

[4WD]

I don't mind the wait to get exactly what I want fresh from the factory. Then there's the added plus of it not being test driven and moved around the dozens of times while it sat in inventory. I was always able to get a better deal on an order, orders don't burn up floor plan money sitting in stock.

I have found moderate options to be a deal - have added navigation and some safety kit for under $500 …

 

[SC Maintenance]

Order a base model, in the color you want, and wait for it to arrive. That way you get what you want exactly, and nobody test drove it.

Depends on the manufacturer whether this is even possible. Honda for example outright said a year or so ago they were only building higher end trims. Toyota works mostly on allocation - so if you try to "order" one they just go searching for something close in the cue. Maybe that has changed now that demand / supply is more in balance.

Best deal is something on the lot on the last day of a quarter. Crazy deals to be had if there close to hitting some milestone and your willing to work it.

 

[BrainThicknessVariation]

https://www.foxbusiness.com/markets...f-buick-dealers-who-opted-against-selling-evs

The real headline is in the second paragraph:

"About half of GM’s 2,000 Buick dealers accepted the voluntary buyout. The program remains open so additional dealers may opt to take the buyout instead of making the EV-related investments that GM required for them to continue selling Buicks, as GM is planning for the brand’s vehicles to be 100% electric by 2030."

IOW, dealers don't want to accept the financial loss that comes with selling EV boondoggles.

 

[OVERKILL]

The real headline is in the second paragraph:

"About half of GM’s 2,000 Buick dealers accepted the voluntary buyout. The program remains open so additional dealers may opt to take the buyout instead of making the EV-related investments that GM required for them to continue selling Buicks, as GM is planning for the brand’s vehicles to be 100% electric by 2030."

IOW, dealers don't want to accept the financial loss that comes with selling EV boondoggles.

It's a lot of money, and may involve dealing with the city/county/utility. Stellantis originally requested my dealer spend a cool million on EV charge stations, which then also required a massive transmission upgrade from Hydro ONE. Eventually, they settled on cutting that number in half for half the number of chargers.

If you are a small dealer, that sort of cost, or higher, depending on your location and the logistics, could be a deal breaker, in which case a buy-out may make sense.

Of course this ties back to my concerns about the service experience and consolidation.

 

[4WD]

It's a lot of money, and may involve dealing with the city/county/utility. Stellantis originally requested my dealer spent a cool million on EV charge stations, which then also required a massive transmission upgrade from Hydro ONE. Eventually, they settled on cutting that number in half for the half the number of chargers.

If you are a small dealer, that sort of cost, or higher, depending on your location and the logistics, could be a deal breaker, in which case a buy-out may make sense.

Of course this ties back to my concerns about the service experience and consolidation.

That’s going to be interesting here - the same family who previously had the entire GM line-up also has the entire Mopar line

 

[SC Maintenance]

Someone needs to explain to me why the dealer needs all that infrastructure. Is the idea that you go to the dealer to charge your car? I can see having a single charger, maybe. Dealers don't have gas pumps currently - they drive the car down the street and fill it?

 

[OVERKILL]

That’s going to be interesting here - the same family who previously had the entire GM line-up also has the entire Mopar line

Big high volume dealerships will be able to absorb these costs, but the little ones, which are critical for convenience in lower density areas, may not. That presents a serious problem.

 

[4WD]

Big high volume dealerships will be able to absorb these costs, but the little ones, which are critical for convenience in lower density areas, may not. That presents a serious problem.

If they could change anything - they need more 2500/3500 units here

 

[OVERKILL]

Someone needs to explain to me why the dealer needs all that infrastructure. Is the idea that you go to the dealer to charge your car? I can see having a single charger, maybe. Dealers don't have gas pumps currently - they drive the car down the street and fill it?

It's a different system. People don't fill up their gas car at home, nor do they magically lose fuel level over the course of a week. Dealers need a way to charge-up new arrivals and cars in for service and there are no guarantees that a 3rd party charge station will be nearby. And then of course there is the time difference involved.

 

[SC Maintenance]

It's a different system. People don't fill up their gas car at home, nor do they magically lose fuel level over the course of a week. Dealers need a way to charge-up new arrivals and cars in for service and there are no guarantees that a 3rd party charge station will be nearby. And then of course there is the time difference involved.

So the suggested $1M in your case was mostly about charging cars on arrival, and service? So who pays for the actual electricity in that case, the dealer on new I assume - customer in for service likely pays his own? Still seems excessive - how many service bays does said dealer have approximately?

 

[OVERKILL]

So the suggested $1M in your case was mostly about charging cars on arrival, and service? So who pays for the actual electricity in that case, the dealer on new I assume - customer in for service likely pays his own? Still seems excessive - how many service bays does said dealer have approximately?

IIRC, the $1M was for 4x chargers, he's now only required to install 2x.

I'm not privy as to the details of who pays what, it may be free charging for Stellantis-branded vehicles, you might have to pay, I have no idea.

This dealership has 12 bays.

 

[proveitwithdata]

The real headline is in the second paragraph:

"About half of GM’s 2,000 Buick dealers accepted the voluntary buyout. The program remains open so additional dealers may opt to take the buyout instead of making the EV-related investments that GM required for them to continue selling Buicks, as GM is planning for the brand’s vehicles to be 100% electric by 2030."

IOW, dealers don't want to accept the financial loss that comes with selling EV boondoggles.

dealer principal had more information then the average buick buyer. They get access to product timetables and expected products before anyone. If they saw all this marvelous product, its interesting to see so many voluntary buyouts

 

[SC Maintenance]

Given there are 1500 Toyota and Lexus dealers in the USA, 2000 dealers for Buick does seem excessive.

 

[daves87rs]

I don't mind the wait to get exactly what I want fresh from the factory. Then there's the added plus of it not being test driven and moved around the dozens of times while it sat in inventory. I was always able to get a better deal on an order, orders don't burn up floor plan money sitting in stock.

Yep, same reason why I want to order mine.

 

[Ws6]

Buick actually makes, right now, the sexiest cars they've made since the 80's.

 

[MParr]

I would imagine that GM would require their Buick dealers to stock a fixed number of EVs in their inventory. Buying something and stocking something that doesn’t sell isn’t good business practice.

 

[4WD]

I would imagine that GM would require their Buick dealers to stock a fixed number of EVs in their inventory. Buying something and stocking something that doesn’t sell isn’t good business practice.

And with Tesla alone still having half of the market - I see another shadow of a car icon on that black marble storefront …
(Cadillac shadow now) …

 

[demarpaint]

I would imagine that GM would require their Buick dealers to stock a fixed number of EVs in their inventory. Buying something and stocking something that doesn’t sell isn’t good business practice.

Exactly!! I have zero compassion for dealers, but there is something that makes me almost feel bad for the Mom and Pop dealers not wanting to take on the EV's. Perhaps dead money in their view, and the added costs associated with taking them on could turn a good business into a loser. That alone might make some feel it's time to cash in the chips. That's one of the many downsides to a franchise.