It’s going to be the hottest game in town. The question is, will your dealership be sitting at the table or watching from the sidelines?
I’ve been predicting for much of the year that used-car values would take a monumental dump in the fourth quarter due to the glut of off-lease and fleet units returning to market. What I didn’t count on was Donald Trump getting elected to the presidency.
Yes, I am a huge Trump supporter, believer, and advocate, but, like many of you, I was beginning to buy into the belief that Hillary had him beat. So with the uncertainty came the miscalculation that pre-owned values would drop significantly due to the flood of used inventory returning to an already saturated market.
Well, it appears I was wrong — at least for now. Look, I still believe we’re on the path to market saturation, as every prospect out there already owns two cars. Long-term financing and escalating prices will eventually kill the market, the cycle having repeated itself in Ground Hog Day fashion every five years since World War II.
Read the whole article here on F&I and Showroom.