Car dealerships have been mom and pop businesses for much of their existence. But the industry has been slowly consolidating. Six publicly traded dealership groups – AutoNation, Lithia Motors, Group1, Sonic Automotive, Penske, and Asbury – have been on a shopping spree, buying up a small but growing share of dealerships. These larger groups have been wildly profitable. But they face challenges. Tesla, Rivian and others are trying to sell cars directly. Consumers and automakers have been rebuking dealers for record high prices. But these groups have a lot of opportunity to expand further – they only control a small share of the total dealership market. They are also going online.
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How These Companies Are Taking Over Car Dealerships
Watch more new videos about Car | Synthesized by Mindovermetal English
People love a new car or truck. But it's dealing with the blood sucking, lying, thieves AKA Salesmen / woman that sour the experience . Direct sales works for Tesla . 🤷🏻♂️
I have known several family owned dealers that have sold to big companies. The biggest reason for this is the "old man" dies and the kids don't want to do that kind of work or have the passion to keep it. Also, in one case, the father of the kids didn't have a succession plan and they started fighting over who was going to control and they couldn't decide so it was voted by the majority to sell. These were all single dealership owners in smaller communities.
They are called stealerships for a reason.
Dealerships are such a rip off.
Why can't I buy a car for 25k when it says it costs 25k , dealers will mark it up to 38k before taxes
Stealershipa
Tesla and BYD will be largest car manufacturers by 2030
The dealership model is an old antiquated business model. Laws should be change so that consumers don't have to go through one of these middlemen in order to get a new car. Tesla has it right by selling direct to the customer.
Latest number 18,666 dealerships in usa
Auto dealership are NOT the last bastion of anything…seriously…except maybe over-priced service, parts and upselling
You don't need a Ford or Chevy dealer in every city or closer than 20 miles to each other anymore.
Software sales > commission sales
"The auto retail the last bastion of the mom and pop industry"? Lady are you out of your mind? Dealers are almost like scammers with a license!! Ever taken your car for a repair, sometimes even just for maintenance? They'll gouge out your eyes if you don't pay attention at what you agree with.
Last time I tried to repair the AC controller (the thingy with buttons), they wanted to charge me 480 freaking dollars!!! I went to the junkyard, got one. I spend $42… Is that the ideal of a mom and pop experience?? Thanks but no thanks.
I want a Rivian or a Tesla just to not deal with dealerships and not give even one cent to that rotten industry.
Everyone is this comment section that is talking about car sales being DTC in the coming years should see modernMba’s video on DTC startups and why they don’t work.
You aren't tested until a company you own and believe in is down 30-40-50% from its highs. You will question your conviction, your strategy, your process. The market has a way of finding your breaking point. Nothing tests your conviction like falling stock prices.
Even without Dealerships your screwed as your right to repair is about to disappear. Yea Tesla sells cars straight to buyers but Tesla will NOT sell you parts for the car you purchased from them. All auto manufacturers are going this way including the manufacturer I work for. Soon you will not have any choice or say of where you have your car repaired or what parts are used. Basically you bought the car but your going to be told this is how much to fix it. Trans slipping ? No more tear it down your getting a brand new one. You got a couple bad cells in your EV battery? Tesla doesn’t replace a few bad cells they replace the whole pack.
Dr Fernando Martinez Jr. Own Rolls Royce with dealership dealings GMC and Dodge and jeep with energinering with hybrid cars from rolls Royce. Mercedes is in business partship on making trucker cars for national trade and barter from international which is illicit trade act in crime prevention.
Hopefully everything will be made to order eventually. Won’t have to deal with sales people
"Over 80% of vehicles sold in 2022 were over MSRP ". Think about that. Even if you are paying $1,000-20,000" people are still paying over MSRP.
Not sure if many people have heard of the massive repo's that are going on, but there were TONS of repo's on people who were paying $1,000 per month on their car note. How on Earth is anyone paying $1,000 a month just to drive a car and THEN you get it repossessed because you can't afford it.
The age of the industrial revolution are over times are quickly changing. The old system of supply and demand must also change along with it. Decreasing the supply only increases the price when factories quit mass producing yet demand is still the same it will drive prices sky high. The old system is out dated . In future economic models money and profits will have to be looked at differently
Does the economy exist to support humanity. Or is humanity exists to support our economies .regardless of profit margins you can't build it or buy it if the commodities don't exist to make the product in the 1st place. In the not to distant future people will be killing each other over a gallon of water. Who cares about profit margins
Maybe the corporate giants can by some waterthat doesn't exist with their profit margins. A Socialist reform governing body is in order no more mom and pops retailers big government and giant corporations are soon going to watch and own everything including the individual citizens and their resources is that what we all voted for. I smell a revolutionary resolution a brewing in the mix
0:07 The auto industry destroyed mom&pop shops in every industry. You really want me to feel bad for you?
shady af
Dealers were bad before the chip shortage too they haven’t been working for the consumer in decades. Some of the most corrupt businesses in the country.
The power of dealerships is maintenance and warrantee coverage. If auto dealers can work a show room/ service model, they will thrive. If national companies can open their own service/ maintenance model, they will dominate.
The power of dealerships is maintenance and warratre
Tesla replaced my airbag with their mobile service with no action required by me. Seamless and effortless compared to taking my car to a dealer; yech.
A single-manufacture dealership will bring in more revenue, taxes and various incomes to a local economy in a month, than an entire strip mall will in a year with the same square acre. Furthermore, Dealerships compete feverishly with each other, keeping pricing (and profits per-unit) low. (that is, in a more typical environment, than what we have with us today). Infact, occasionally, they will sell a unit for a loss, simply to move it off the books and get the credit for the sale from the manufacture. Should they have been marking up MSRPs to record highs – probably not, but along the same line, how's that housing market treating you ? And who's setting those prices ?
I've seen many reports on this topic and they all mention the high sale prices and limited supply. What they don't consider or even seem to mention is that the sale numbers between 2020-2021 are an inflated phenomenon that is not likely to happen again. That phenomenon was the stimulus payments. There were people that had never had any savings in their life but suddenly received their backpay stimulus checks of $20,000-35,000 and all of a sudden you have thousands to tens of thousands (possibly even hundreds of thousands) of people that for the 1st time in their lives could afford to buy a car outright in cash. Considering that there are many parts of the country where it is nearly impossible to live without a car that's what many did. Just like the sale quantities were inflated so were the prices for the same reasons. The number of used vehicles being sold are falling off and the prices should soon follow. Anyways, my point being is that investors may want to be wary when looking to invest in companies that are investing heavily into used car dealerships.