The stories are similar across the country: lots are sitting empty, features are being deleted to secure inventory, and there are even reports of customers following vehicle transport trucks down the street to see if theirs are on it. We’re living in an unprecedented time amid one of the most bizarre supply chain crises the automotive industry has ever seen. The semiconductor and microchip shortages and global supply chain woes are expected to cost the industry more than $200 billion worldwide before it’s over, which could take many more months.
The good news is that the chips that are available are being reserved for higher-margin vehicles, and those are moving quickly when they do arrive. According to the CarGurus Vehicle Availability Index & Insights report, new days-on-market was down 13.5% from October and down 41.8% year-over-year. Used days-on-market rose 0.9% from October, which is to be expected with normal seasonal trends — however, year-over-year days-on-market is down 4.4%, showing that demand may be higher than seasonal trends would predict.
Ultimately, this means the few vehicles that are arriving are quickly turning a solid profit. Whatever strategies your dealership is using to manage the situation, there may be other ideas out there you haven’t considered. Here are some tips to help you make the most of the current situation and stay on top of the game.