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8 hours ago, slemke said:

Two eco sports  and a vehicle to be named later for an F150 today.

 

I read that customers are starting to face the reality of paying what the dealer is asking or someone else will buy the vehicle similar to the housing market.  Not a buyers market.  I’d wager that was is left of inventory more than a month or two old are unpopular trims/options/colors.

Most of the F150s left now are either XL or XLT.

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12 hours ago, jpd80 said:

Had my first Astra Zeneca shot on Saturday, being a bit older fart with diabetes, I was on the list but holy crap my arm was sore Sunday from elbow to armpit an a no show for work Monday......I must be getting soft.

 

I'm middle aged and had covid also and after I got my pfizer shots, I had a similar reaction to what I had when I had covid, but it cleared up about 24 hours after it started...still sucks, but its behind me now. 

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13 hours ago, jpd80 said:

I feel for you and other sales staff, this is the last thing everyone needs.

 

Had my first Astra Zeneca shot on Saturday, being a bit older fart with diabetes, I was on the list but holy crap my arm was sore Sunday from elbow to armpit an a no show for work Monday......I must be getting soft.

I had Moderna, and had no reaction from the first shot and just a little to the second. My wife, however, was sick like she had the flu for a day and a half after the second shot and had to take a day off of work. Oddly enough, I think people with stronger immune systems tend to have stronger reactions, because what you are feeling is the body doing what it supposed to, that is learn to defend against a covid infection.

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Did a search within 100 miles of my rural home and came up with barely 300 new Fords and about 100 of them are F150s. No Transit 150s or 250s and even the leftover Fusions are gone. Single digit supplies of Transit 350, F250, F350, Expedition, and Mustang, 40 odd Edges and around 50 Escapes. This is truly scary for the dealers- A lot of farmers and businesses are having a good year and will be looking to buy new trucks to reduce their tax liability later this year, and Ford dealers have almost nothing to sell them.

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21 minutes ago, GearheadGrrrl said:

Did a search within 100 miles of my rural home and came up with barely 300 new Fords and about 100 of them are F150s. No Transit 150s or 250s and even the leftover Fusions are gone. Single digit supplies of Transit 350, F250, F350, Expedition, and Mustang, 40 odd Edges and around 50 Escapes. This is truly scary for the dealers- A lot of farmers and businesses are having a good year and will be looking to buy new trucks to reduce their tax liability later this year, and Ford dealers have almost nothing to sell them.

It’s not just Ford, try getting a GM or a Ram or Dodge, everyone is struggling.

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32 minutes ago, Gurgeh said:

I had Moderna, and had no reaction from the first shot and just a little to the second. My wife, however, was sick like she had the flu for a day and a half after the second shot and had to take a day off of work. Oddly enough, I think people with stronger immune systems tend to have stronger reactions, because what you are feeling is the body doing what it supposed to, that is learn to defend against a covid infection.

I think you’re right, I’m on the mend now, a big part for me is keeping my blood sugar under control 

God bless all my American friends.

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Posted (edited)

I picked up a super low mileage (8k miles!) 2019 Edge Titanium off of Carvana to replace my wife's Edge lease which is not even up for a few months.  I knew if I waited until her lease was up, the chances of getting a new vehicle off of the lot (optioned how she wants it) would be hard and used vehicles would be in even more demand than they are now (and more expensive). 

 

To let you know how fast used vehicles are going, I was looking at 5 different Edges on Carvana and by the time I got to looking at the last one, 3 of them were already pending purchases.  Anyway, the 2019 Edge Titanium gets delivered on Thursday.

Edited by Anthony

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43 minutes ago, Gurgeh said:

I had Moderna, and had no reaction from the first shot and just a little to the second. My wife, however, was sick like she had the flu for a day and a half after the second shot and had to take a day off of work. Oddly enough, I think people with stronger immune systems tend to have stronger reactions, because what you are feeling is the body doing what it supposed to, that is learn to defend against a covid infection.

 

I had Moderna as well.  The first one, just a sore arm.  The second one knocked me on my ass for two days.  Chills, fever, body aches.  I have not called into work for at least 6 or 7 years, but I called in.  I couldn't get out of bed.

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5 hours ago, Anthony said:

 

I had Moderna as well.  The first one, just a sore arm.  The second one knocked me on my ass for two days.  Chills, fever, body aches.  I have not called into work for at least 6 or 7 years, but I called in.  I couldn't get out of bed.

 

How do I get that gig?  Not even having to call for 6 or 7 years and still get paid?   😛 😛 😛

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Our Ford dealer, I have no idea how he can stay in business with a total of SEVEN 2021's!

266692982_ScreenShot2021-05-19at7_47_03AM.png.3b7ab53ad4a8dc2df31095c17b27173b.png

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47 minutes ago, Gregg Tonkin said:

Our Ford dealer, I have no idea how he can stay in business with a total of SEVEN 2021's!

 

Wow, this must be a painful time for the new car sales staff at the dealership. :(

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A buddy heard on the radio this morning there's a 17 week lead time from order to delivery for these microchips. 
 

Buckle up, it's going to be a loooooong summer. 

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3 hours ago, Gregg Tonkin said:

Our Ford dealer, I have no idea how he can stay in business with a total of SEVEN 2021's!

 

My dealer is down to two vehicles, an Ecosport and Escape.  That's it.

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My dealer had 25 F150's two weeks ago...down to 8!  It's pure crazyness.

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4 hours ago, Gregg Tonkin said:

Our Ford dealer, I have no idea how he can stay in business with a total of SEVEN 2021's!

266692982_ScreenShot2021-05-19at7_47_03AM.png.3b7ab53ad4a8dc2df31095c17b27173b.png

 

Used vehicles which can be more profitable than new. Of course those can dry up over time if shortage continues long term. My local Ford dealer has 50 new vehicles, but over 60 used vehicles. 

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We've always heard they don't make any money off new car sales anyway and that it's used cars and service.  Guess we'll see how true that is.

 

I think the dealers will be ok but the salespeople will take a hit for sure.

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Posted (edited)
15 minutes ago, akirby said:

We've always heard they don't make any money off new car sales anyway and that it's used cars and service.  Guess we'll see how true that is.

 

Service (fixed ops) and finance (F&I) accounted for over 77% of gross profit at new car dealerships in 2019. You and FordBuyer are correct that used cars are more profitable than new, but excluding F&I their contribution to overall dealership profitability has declined over the past few years.

 

The data for 2020 and 2021 will be interesting to see.

 

3.png

Edited by rperez817

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On 5/18/2021 at 5:09 AM, jpd80 said:

Most of the F150s left now are either XL or XLT.

Thats's about all Ford has been building for awhile. So many features and options on Lariat and up on commodity hold.

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46 minutes ago, rperez817 said:

 

Service (fixed ops) and finance (F&I) accounted for over 77% of gross profit at new car dealerships in 2019. You and FordBuyer are correct that used cars are more profitable than new, but excluding F&I their contribution to overall dealership profitability has declined over the past few years.

 

The data for 2020 and 2021 will be interesting to see.

 

3.png

Thank you for the information, that chart confirms a lot of what has been said about what brings in the money for dealerships.

With new car supplies drying up, it won’t be long until good used vehicles dry up as well and there goes the profits from financing.

That leaves servicing as the main profit earner.

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1 hour ago, akirby said:

We've always heard they don't make any money off new car sales anyway and that it's used cars and service.  Guess we'll see how true that is.

 

I think the dealers will be ok but the salespeople will take a hit for sure.

they do...but no where near as much as people think....in a majority of cars theres more $$$$ in savings due to Rebates than actual profit margin...

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Hadn't seen those graphs, I've looked at Penske and some of the other publicly traded dealerships breakout of profitability and it showed parts and service at 30-40% profit margin while new and used car sales were usually under 10%. When parts and service earn over 50% of profits, when you look at the ROI for sales vs. service it makes sense to shift capital allocations from vehicle inventory to parts and service.

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Posted (edited)
20 minutes ago, GearheadGrrrl said:

Hadn't seen those graphs, I've looked at Penske and some of the other publicly traded dealerships breakout of profitability and it showed parts and service at 30-40% profit margin while new and used car sales were usually under 10%. When parts and service earn over 50% of profits, when you look at the ROI for sales vs. service it makes sense to shift capital allocations from vehicle inventory to parts and service.

 

Yes ma'am GearheadGrrrl. At most new car dealerships, the business activity of selling or leasing new cars is a "loss leader" that enables them to do the more profitable things that keep them in the black.

  • Trade-ins for new cars are sold as used cars
  • Lease returns are also sold as used cars
  • Most customers who buy a car (new or used) and all those who lease one will pay for products and services from the finance department
  • Both new car and used car customers will buy parts and service for the vehicle they purchased or leased, and do so multiple times in the course of operating the vehicle

This is what makes the low inventory situation with new vehicles such a challenge for dealerships. As new car customers dwindle, the more profitable business units may get hurt. Dealerships will have to get creative to keep things going in F&I and fixed ops.

Edited by rperez817

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7 hours ago, mackinaw said:

 

My dealer is down to two vehicles, an Ecosport and Escape.  That's it.

 

LAP is closing down next week and won't open again for at least 6-8 weeks again. Maybe the Escape haters are correct....no more Escape and no hybrid let alone a plugin. All Ecapes in inventory should be gone by end of June if not sooner. 

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Somehow they're shipping BS's, dealer near me has 7 out front!

 

HRG

JCF current inventory.JPG

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That amazed me too, local dealer here has 2 Bronco Sports. Within 100 miles of me cars.com shows about 130 Ford pickups and 24 of them are Rangers. With no Tacoma's and all of 3 Colorados... Hopefully a few buyers will cross shop the Ranger and take a liking to it... It is the world's best small pickup, after all!

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