Quote:
Originally Posted by Higgs Boson
Why will there be a "build up" of inventory? Dealers aren't going to load up on inventory if no one is buying cars.
They will simply wait until someone wants to buy a car and decide if it's for a price they want to sell it for and if it isn't they will decline.
New cars are completely different where you have a manufacturer that wants to keep stuffing dealers with inventory and then will incentivize sales so they can keep building and shipping.
However at some point that doesn't make sense either and they stop building cars, push back releases, furlough and lay off, and possibly build some ventilators (or tanks) instead.
Without supply, low demand means nothing. The market shrinks but that doesn't mean prices fall.
However, demand ISN'T low at all, luxury cars are still selling well, especially on the preowned market. Maybe the surprise price change will be higher prices as demand stays constant and supply falls, lol....
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Dealers don't have a choice in the matter.
They are GIVEN the cars from the manufacturer, whether they are factory build slots or pre-builds.
The overseeing manufacturer decides how many cars are going out. Do you think they will pull production that much? I doubt it