How are some of these dealerships even keeping the lights on?

[Bladecutter]

The thing is, how do they know it works? How would they tell if a customer came in from a Facebook ad or from a friend's suggestion?

My god, the amount of misinformation and just lack of knowledge of how internet ads, and cookie monitoring works is just sad.

First off, yes, there is a whole lot of information that is processed through Facebook, Google, AppNexus, Amazon, Epsilon, Polk, and others, and get processed by a myriad of other companies, in order to build very thorough online and offline profiles on users, and consumers. You can be tracked just as easily with your online website behaviors as you can when you go to Kroger, and buy a package of Oreos and Hamburger Buns with your VISA card.

But all of you are missing out on the most important part - Most people who build online advertising campaigns are completely incompetent, and the people who are their bosses are even more so. They will have competing strategies running at the same time, all trying to take credit for the same transactions that occurred during a specific time period, and its a farce.

Yes, some people have ad blockers, but the percentage of it being used is very small in comparison to the total number of users that are out there, surfing the web at any given moment.

I've been in the online advertising business for 15 years now, and the most effective ads are the ones that actually provide a value for the action of making a purchase. You know, a discount. Branding campaigns are a waste of money unless you are a brand new company getting into an emerging market. Retargeting campaigns that don't have frequency caps that chase users all across the internet are the easiest way to convince a buyer to never use your products ever again.

Anyway, online and offline advertising exists, and isn't going anywhere.
No matter what new restrictions come up, someone comes up with a way to make it work in their benefit.
Frigging Google will always make sure of that.
You tell Facebook or Amazon that they can't deliver advertisements to their users, and you see how fast they start lobbying government officials to change things.

 

[CharBaby]

IMO and just some thoughts:

*Cut back on staff/techs
*Selling at or close to sticker
*Extra add-ons
*Service
*Price increase on parts/labor
*Internet sales
*High Pressure
*High pre-owned vehicle prices

 

[dlundblad]

Our local Ford/ Chevy dealer has a decent supply given the situation. The Chevy trucks are made here though. Maybe that’s part of it?

 

[stanlee]

ALL new car dealerships make WAY more money in the service department vs new car sales. I also believe during the pandemic a lot of back door used car dealing goes on (acquiring and moving used cars outside their car lot). New car dealers want low mileage late model used cars on the lot. I've actually once (many years ago) seen a car I traded in for sale a week later at a local used car dealership on the same street. I can't see even new car dealerships not getting in on the inflated price action of used cars over the past 6 months.

 

[doublebase]

Because many of the customers will tell them they saw an ad on Facebook, Youtube, etc., etc., etc. Many people love to think that they are contributing/being helpful to successful enterprises. My late father-in-law was one of them. Had to tell every employee he ran across at a business that he saw their store's ad wherever (even if he was lying).

I’ll take that a step further...you buy stuff. And you pay for it with your credit card.

And to take it further, they don’t care. TV adds never knew exactly who was watching, they just tried to target an audience based on content (sports, tv shows, whatever). Internet I imagine is more pointed in the direction they want/need. A lot of us shop on line too...christ, Amazon has tv shows on Netflix telling us how THEY do it.

Almost everything we do now is traceable and useable information for something. Where we drive, where we shop, what we buy, what we watch, what we click on. It doesn’t really bother me, maybe it should, but for the most part it doesn’t...but that’s all subject to change.

 

[GON]

Stopped by a new modern Acura dealership in Columbia, SC yesterday to pick up a part. Usually the Monday of a non-major federal holiday brings in a "big sale", often targeting government employees. Dealership was a ghost town. Floorman had zero cars in it, lot had a single new RDX and two sedans. That is it.

Took a picture of the showroom.

 

[mattd]

They made a "revised part". It would seem indicative of a part problem.

A revised part doesn’t deem the launch of a vehicle a failure. There have been thousands of revised parts for across all makes/models.

 

[earlyre]

my local Ford Dealer has exactly 1 new mustang on the lot.
a Fully optioned GT500 that's priced north of $100,000.

New 2021 Ford Mustang For Sale at Reineke Ford Lincoln of Lima | VIN: 1FA6P8SJ5M5503130

New 2021 Ford Mustang from Reineke Ford Lincoln of Lima in Lima, OH, 45804. Call (800) 260-3205 for more information.

www.reinekefordlima.com

their entire NEW inventory per their website:
Bronco Sport - 6 (5 of which are in transit)
EcoSport - 2 (both in transit)
Edge - 17 (5 in transit)
Escape - 26 (14 in transit)
Escape Hybrid -1
Explorer - 2
F150 - 7 (6 in transit)
Maverick - 3(all in transit, all Ecoboost)
Mustang - 1
Ranger -1
so actual new cars on the lot today...31

 

[Spyderman24_7]

It’s a hell of a lot more invasive than that. Does your phone have GPS? Your location is being tracked and will also target you on where you go, and who you visit. Your phone is listening 24/7.

Wife is in Cyber Security. Scary how much they track and monitor you through your phone.

No doubt, but there are indeed ways around that to minimize and of course prevent tracking.

 

[sohccammer427]

I work in distribution. For the most part any and all brand new 2021 and 2022 over the road tractor trailers semi trucks are already sold. You cannot buy a new semi tractor today. Sad.

 

[sohccammer427]

I bough a 2021 Silverado around August 2021. Glad I did. It was hard to come by the one I wanted. Had to go all the way to Winston_salem, NC about three hours from my home. It even had the cursed Dynamic Fuel Management system not installed. It was the last of the analog gauges and had the sane sized center display screen. And it was even priced below sticker, go figure.

 

[dbias]

my local Ford Dealer has exactly 1 new mustang on the lot.
a Fully optioned GT500 that's priced north of $100,000.

New 2021 Ford Mustang For Sale at Reineke Ford Lincoln of Lima | VIN: 1FA6P8SJ5M5503130

New 2021 Ford Mustang from Reineke Ford Lincoln of Lima in Lima, OH, 45804. Call (800) 260-3205 for more information.

www.reinekefordlima.com

their entire NEW inventory per their website:
Bronco Sport - 6 (5 of which are in transit)
EcoSport - 2 (both in transit)
Edge - 17 (5 in transit)
Escape - 26 (14 in transit)
Escape Hybrid -1
Explorer - 2
F150 - 7 (6 in transit)
Maverick - 3(all in transit, all Ecoboost)
Mustang - 1
Ranger -1
so actual new cars on the lot today...31

My local VW dealership has 21 vehicles available. No Jettas to be had so the cheapest car on the lot is a 28k Passat SE. Most vehicles show at least 900 off sticker.

 

[mightymousetech]

No doubt, but there are indeed ways around that to minimize and of course prevent tracking.

If you have a smart speaker in your house, there really isn’t.

 

[tmorris1]

The thing is, how do they know it works? How would they tell if a customer came in from a Facebook ad or from a friend's suggestion?

I am guessing they have tried the Washington Post and found online ads to be much more effective

 

[Spyderman24_7]

If you have a smart speaker in your house, there really isn’t.

And I don't as I'm one that can get by without most lame luxury items some people just can't live without.

 

[PimTac]

I am guessing they have tried the Washington Post and found online ads to be much more effective

Democracy Dies In Darkness.

 

[PWMDMD]

Just spoke to a woman whose husband is a GM for a car dealership and she said they 6 cars on the entire lot but that she just quit her job because her husband has never made more money - she just quit her job because they need her income anymore. Every new car they get is sold before it gets there for a premium, every used car is being sold for a premium and they are buying every used car they can get their hand on, and everyone who can't get their hands on a new/used car is fixing their old cars. She said their shop is super busy.

 

[dishdude]

Just spoke to a woman whose husband is a GM for a car dealership and she said they 6 cars on the entire lot but that she just quit her job because her husband has never made more money - she just quit her job because they need her income anymore. Every new car they get is sold before it gets there for a premium, every used car is being sold for a premium and they are buying every used car they can get their hand on, and everyone who can't get their hands on a new/used car is fixing their old cars. She said their shop is super busy.

Yep, and they're making you buy the tru-coat and all the other stupid add-ons along with selling it above MSRP!

A great deal right now is paying MSRP

 

[JTK]

I'm not sure how a number of these dealers are even keeping the lights on at this point. And I realize that this is happening everywhere.

I'm thinking the main thing generating cash flow for them is the service department. No one ever makes money on warranty work, but non-warranty yes. People are willing to drop some major cash on big repairs where this wasn't necessarily the case pre 'rona. Shops are struggling to stay staffed with techs as well, so a few large jobs combined with less staff nets the same $.

Have you tried scheduling a service visit lately? My closest shop never even called me back for a state inspection appointment. The other struggled to get me in for a week, then had a small window to get me done.

I'd imagine the sales and office staff has either 'right sized' itself, or dealers have laid people off.

I hate to think about it, but this whole vehicle market is going to force me to change my ways, maybe forever. For 30yrs I've enjoyed buying/selling/trading every 2yrs or so. The process always being sparked by me finding a deal for a particular vehicle type I like at the time. With the supply, demand and pricing today? Forget about it. I'll only be in the market if I absolutely have to.

 

[mightymousetech]

I'm thinking the main thing generating cash flow for them is the service department. No one ever makes money on warranty work, but non-warranty yes. People are willing to drop some major cash on big repairs where this wasn't necessarily the case pre 'rona. Shops are struggling to stay staffed with techs as well, so a few large jobs combined with less staff nets the same $.

Have you tried scheduling a service visit lately? My closest shop never even called me back for a state inspection appointment. The other struggled to get me in for a week, then had a small window to get me done.

I'd imagine the sales and office staff has either 'right sized' itself, or dealers have laid people off.

I hate to think about it, but this whole vehicle market is going to force me to change my ways, maybe forever. For 30yrs I've enjoyed buying/selling/trading every 2yrs or so. The process always being sparked by me finding a deal for a particular vehicle type I like at the time. With the supply, demand and pricing today? Forget about it. I'll only be in the market if I absolutely have to.

Sales is mostly commission. Does not cost the dealer much to keep them on staff, even if they are not selling anything.