— have been on a shopping spree in recent years, buying up a small but growing share of dealerships. And they've been wildly profitable.
Circumstances have been especially positive in the past couple of years. New car prices have hit record highs with parts in short supply and automobiles in high demand, especially for Americans who moved to suburban areas during the Covid-19 pandemic and needed their personal vehicles for their main mode of transportation.
The trials of the pandemic also forced dealers to become a lot more efficient. As a result, dealers have been raking in higher profits on every unit sold. Companies such as the two biggest firms, AutoNation and Lithia Motors, have been, respectively, buying back massive amounts of stock and investing into more acquisitions and other businesses, such as online retail architecture.
But they could face a tough, uphill climb ahead. Consumers are getting increasingly frustrated by the dealers' high sticker prices and there are other buying options: popular car brands such as
Companies like lithiamotors will be around for a long long time ...this said companies like driveshift are making buying and selling cars way easier lol I'm hedging the future in that I own long positions in both $SFT and $LAD :)
Cars are on the way out. Pol Pot Biden will have all Americans riding goats and slaving in cotton fields.
I rather go to the dentist
An interesting segment for those of us Municipal CEO”s who spend a great deal of time on economic development in our cities and towns.
This is going to end really badly. These guys are paying ridiculous prices for these stealerships. The music stops with 8-10% interest rates and recession this year. Then transition to Tesla model, NOT GOOD
There is consolidation in every industry. Auto retailers - and those independently owned are not going anywhere. We invest deeply into the communities in which we serve.
Tesla is changing the automotive industry again but maybe not for the better. Dealers are doing this to increase profits. Much better for them to sell the car then build it than build it and let it sit on a lot until it sells or doesn’t and has to be discounted
corrupt and cartel behaviour from these dealerships. but keep going pls. it is helping $tsla lol keep going, keep squeezing
WE NEED TO REVERSE THAT FORTHWITH --- IT IS DEATH TO AMERICAN CAPITALISM!
'...and so from a free cash flow and earnings perspective its been fantastic...'
Buh bye stealerships! No one is going to miss you!
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With the strategy of ordering online, I think Sooner Or letter, the car dealerships will end.
Yes
I DONT WANT TO BUY A CAR ONINE... ONLY IN PERSON
Heck no. Millions of Americans want to sit in the vehicle and test drive it before spending tens of thousands of dollars on a vehicle that may or may not be suitable for them. Whose going to spend a hefty $40,000+ on a car they can’t even sit in & test drive first?
teleportation machines. no one wants to drive anymore.
Good bye stealerships!
Do you just not report news on your boss or…?
Biden has destroyed the car industry