New Vehicle Pricing
I thought this would be a good time to discuss new vehicle pricing in the current market. I see many dealers using their pricing tool with a set-it-and-forget-it mentality. The only time they are changing their pricing rules is when the factory sends out new incentives. Unfortunately, the market is too volatile to operate this way today. I still see dealers starting their vehicles at MSRP when they have aging inventories and more allocation coming. Many dealers have been operating with floor plan credits in the past due to a lack of inventory for the past couple of years. I am now seeing dealers with quite a large floor plan interest expenses due to slow sales and aging inventories. With the current interest rates, these fees are very detrimental to the health of the store...
??