Will the dealer model change?

[JaxGtc]

As I drive by dozens of dealers with almost empty lots, it makes me wonder if we are seeing the beginning of a change in the dealer model. Instead of floorplanning hundreds of cars to sit on acres of valuable land, might car sales be moving to more of an order model? With folks spending a lot now for just about anything new, I suspect fewer and fewer will "settle" for what is on the lot. It might take years to satisfy current demand and restock lots to previous levels. Curious.

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[dbweb]

I have ordered and put deposits on two different vehicles from different manufactures neither of which can tell me when I might get delivery. I hope this is not the new sales model or I might have to rely on public transportation.

 

[Erock]

To be honest... I’ve never talked to a dealer that really knew much about the ones sitting on the lot... so I’m not sure much would change. Lol

 

[UZJBronco]

Need to remember most of the country are not “car people” and generally like to buy any available car (within a class, sure) at a “discount”. More than that even us car people like to cross shop/nitpick/test what we read online, and the current model easily allows that. I doubt dealers who are now in trouble with production issues would want to commit to specifically fulfill orders in the future when they can crank out a ton of appliances for people to buy as before.

 

[Carolina Jim]

makes me wonder if we are seeing the beginning of a change in the dealer model

This might be a longer-term horizon for evolution than what you intended....but you can't really separate the product itself from its distribution model. So, a question more to the point is 'how might vehicles themselves change?'

One of the dynamics that might change with the EV transformation is moving away from a 'package' vehicle, and moving toward a 'component' vehicle....in other words, treating each of the major vehicle components separately:

• Carriage
• CPU & connections
• Motor(s)
• Battery
• Frame/Suspension

This concept would require standardization to achieve a "plug & play" level of interoperability - but vehicles are already one of the most regulated products, so that's not a stretch. Each major component could be treated differently from the standpoint of: manufacturer, service provider, life-cycle replacement, etc.

 

[martyb]

Car buying is compulsive and emotional.... asses in seats sells cars and someone driving past a lot seeing something that catches their eye is how 90+% of cars get sold. It will take a culture change to shift the paradigm to pre-planning for a vehicle purchase.

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