After bottoming out at the start of the pandemic, profits at US auto dealerships are soaring.

The last time the National Automobile Dealers Association was able to hold its annual convention in person, the mood was much different....


The last time the National Automobile Dealers Association was able to hold its annual convention in person, the mood was much different. In a word, darker.

Just before the pandemic, pessimism abounded among the country’s roughly 18,000 new-car dealerships. Threats loomed over the traditional sales model – for more than a century, one of the great generators of localized American prosperity.

There were also concerns about the inexorable advance of electric cars, with their higher prices and presumed reduced service requirements. Self-driving cars heralded a decline in car ownership (and purchases) with their promise of expanding carpooling and carpooling.

Then the Covid-19 pandemic arrived in March 2020 to deliver a dreaded knockout blow. As the year opened with heavy traffic in showrooms, the bottom slumped, with auto sales plunging at an annualized rate of 8.8 million in April, about halfway through the clip normal. Dealers were rushing to the exit doors, looking to offload businesses that might suddenly be worth only the price of their underlying real estate, if that were the case.

But the pandemic has scrambled the economy in ways big and small, predictable and very erratic. Jobs disappeared, but rebounded fairly quickly. Online retailing has grown at a blistering pace. Supply chains have become messy and inflation has only increased. And, for car dealerships, the unexpected happened.

Sales picked up quickly. And by the time dealers gathered last month in Las Vegas for the 105th annual conference, they were exuberant, toasting at cocktail parties and stalking the convention floor. The salespeople, with everything a car dealership could need or dream of, were armed with enough promotional tchotchkes to fill several gymnasiums.

There was a lot to celebrate. Instead of imploding in the pandemic, profits for automakers and dealerships have exploded and continued to soar. While some brands saw sales decline, transaction prices rose sharply to make up for the lost volume, allowing many manufacturers to post record profits, sales or both. And, oh surprise, car dealerships had the best year in their history.

“It’s crazy times right now,” said Bruce Bendell, founder of the Major World and City World chains, with eight dealerships in the Bronx and Queens.

Sheldon Sandler, a Wall Street accountant turned car dealership sales agent, agreed. “Every dealer today is making money in spades,” he said. “Dealers make money with all brands, even second or third tier ones.”

Source Link

COMMENTS

Name

Africa,957,Americas,4374,Art & Culture,16176,Arts,6814,Arts & Design,1919,Asia,3599,Automobile,572,Baseball,837,Basketball,683,Books,4228,Business,5705,Celebrity,2633,Cricket,648,Crime,158,Cryptocurrency,2166,Dance,715,Defense,836,Diplomatic Relations,2496,Economy,1394,Editorial,260,Education,1515,Elections,308,Energy & Environment,3190,Entertainment,23696,Environment,3970,Europe,4557,Faith & Religion,235,Family & Life,817,Fashion & Style,3670,Finance,21881,Food & Drink,4144,Football,1311,Games,97,Gossip,10289,Health & Fitness,4495,Health Care,967,Hockey,272,Home & Garden,920,Humour,994,Latin America,49,Lifestyle,18576,Media,527,Middle East,1758,Movies,2053,Music,2979,Opinion,4079,Other,13210,Other Sports,5485,Political News,11324,Political Protests,2324,Politics,18863,Real Estate,2305,Relationship,106,Retail,3116,Science,2975,Science & Tech,11192,Soccer,382,Space & Cosmos,450,Sports,13592,Technology,3797,Tennis,729,Theater,1970,Transportation,313,Travel,2853,TV,4023,US,1565,US Sports,1481,Video News,3531,War & Conflict,1069,Weird News,998,World,18219,
ltr
item
Newsrust - US Top News: After bottoming out at the start of the pandemic, profits at US auto dealerships are soaring.
After bottoming out at the start of the pandemic, profits at US auto dealerships are soaring.
https://static01.nyt.com/images/2022/04/03/multimedia/03virus-briefing-cardealers-01/03virus-briefing-cardealers-01-facebookJumbo.jpg%20
Newsrust - US Top News
https://www.newsrust.com/2022/04/after-bottoming-out-at-start-of.html
https://www.newsrust.com/
https://www.newsrust.com/
https://www.newsrust.com/2022/04/after-bottoming-out-at-start-of.html
true
732247599994189300
UTF-8
Loaded All Posts Not found any posts VIEW ALL Readmore Reply Cancel reply Delete By Home PAGES POSTS View All RECOMMENDED FOR YOU LABEL ARCHIVE SEARCH ALL POSTS Not found any post match with your request Back Home Sunday Monday Tuesday Wednesday Thursday Friday Saturday Sun Mon Tue Wed Thu Fri Sat January February March April May June July August September October November December Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec just now 1 minute ago $$1$$ minutes ago 1 hour ago $$1$$ hours ago Yesterday $$1$$ days ago $$1$$ weeks ago more than 5 weeks ago Followers Follow THIS PREMIUM CONTENT IS LOCKED STEP 1: Share to a social network STEP 2: Click the link on your social network Copy All Code Select All Code All codes were copied to your clipboard Can not copy the codes / texts, please press [CTRL]+[C] (or CMD+C with Mac) to copy Table of Content