**Attention Automotive Dealers: A Strategic Inventory Insight**
I'd like to share some thoughts on a critical issue that warrants your attention: the potential for a significant increase in gas prices. With the escalating tensions in the Middle East, there's a real possibility that we could see gas prices surge, reminiscent of what happened in 2008 during the financial crisis.
Back then, large trucks and SUVs lost value rapidly, while small cars, and small SUV’s saw their values rise astronomically. History has a habit of repeating itself, especially in the car business. If I were still a dealer I'd be scrutinizing my inventory of these vehicles, both new and used, retail and wholesale.
Dealers who are heavily leveraged could face severe challenges if this scenario unfolds. The only relief might come from a drop in interest rates, but we can't bank on that and that may not be enough.
I urge you to stay ahead of the curve:
- **Evaluate Your Inventory:** Consider adjusting your strategy retail and wholesale.
- **Aggressive Pricing:** Be proactive about pricing large SUV’s and trucks for a possible correction. Consider your small cars, SUVs, and EVs possibly appreciating.
- **Hedge Your Bets:** Think about acquiring more of these smaller, fuel-efficient vehicles even at a premium today. They may be worth more in the future.
I'm not suggesting a fire sale on gas guzzlers, but being the lowest price in the market now could position you favorably before other dealers react similarly.
I sense an echo of 2008 and would hate to see you caught off guard. Let's position ourselves to capitalize on these potential shifts.
#AutomotiveIndustry #DealershipManagement #InventoryStrategy #GasPrices #MarketTrends #StayAhead
Automotive Director/ General Manager/ SAAS/ Customer Success
8moGood heavens, that's a lot of data. What's happening in the used BEV market? My sense is that it's rocketing but it's just from anecdotal stories.