dealerships

Car dealerships have turned ‘cutthroat’ amid a buying frenzy and dwindling car inventories

Car Dealership
  • The frenzied car market is pitting car salespeople against one another, Bloomberg reported.

  • New and used car prices have skyrocketed during the pandemic amid a shortage of vehicles.

  • Some dealers are even shelling out to buy leased vehicles years before the end of their term.

  • See more stories on Insider’s business page.

The pandemic has upended the market for new and used cars, sending prices skyrocketing and inventories dwindling.

A buying frenzy – coupled with soaring prices and a historically low supply of vehicles – has turned car salespeople into enemies, one dealership employee told Bloomberg.

“It’s really cutthroat,” Jared Luner, a salesman at Columbia Honda in Missouri, told the outlet. “Normally we’re all friends and coworkers, but right now, when someone pulls up, it’s a little edgy.”

Luner said he recently had a fellow salesperson sell a vehicle out from under him. Hawking cars was always a

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Computer chip shortage plaguing car dealerships across tri-state area

TURNERSVILLE, New Jersey (WPVI) — A major computer chip shortage continues to plague the automotive industry.

The shortage is impacting many dealerships across the tri-state area due to the lack of new cars to show.

“Apparently, the chip shortage has really depleted our inventory,” said Antonio Guzman, sales manager at Prestige Subaru in Turnersville, N.J.

Guzman says the dealership gets between 60 to 80 new cars a month from the manufacturer. Now, it’s down to 20-40 cars a month.

It has forced him to do something they’ve never done before.

“I’m forced to put used cars in the showroom to fill it up,” said Guzman.

Because of the chip shortage, used cars have turned out to be a very hot commodity.

Some dealers have been offering thousands to buy them back from customers so they can have something to re-sell.

“They did offer my brother-in-law $10,000 more to buy his

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Hudson Automotive, TKO Group buy car dealerships in Southern states

Three dealership groups, including the growing Hudson Automotive Group, have purchased stores in Alabama and Louisiana in deals that closed in the second quarter.

Here’s a quick look at the transactions involving domestic and import brand stores.

 

Hudson Automotive, of Charleston, S.C., acquired its first dealership in Alabama on Monday when it bought Hoover Toyota, located south of Birmingham. The group bought the dealership from Gordie Stewart, who had owned it for 22 years, the Hoover Sun reported.

“It’s a great brand, and Birmingham is a great market,” David Hudson, CEO of Hudson Automotive, told Automotive News. “We like Toyota a lot.”

This is the group’s 33rd rooftop, Hudson said, including a used-vehicle store. Hudson Automotive also has dealerships in Tennessee, Kentucky, South Carolina, North Carolina, Louisiana, Georgia and Ohio. Hoover Toyota was the group’s first transaction since November, when it acquired Beaman Automotive Group, made up

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EchoPark Used-Car Dealerships Gain Momentum In Q1 For Sonic Automotive

A more ambitious expansion of EchoPark dealerships — a network of used-car-only stores owned by new-car dealership chain Sonic Automotive — is off to a promising start, company executives said.

“We sold almost 20,000 cars,” in the first quarter at EchoPark dealerships, an increase of more than 40% vs. a year ago, said Sonic CEO David Smith, in a phone interview April 29, following up on Sonic’s first-quarter earnings announcement.

The increase is largely because Sonic is adding more EchoPark stores, but Smith said some new EchoPark locations are also reaching operating profits faster than expected. Newly added markets include Phoenix, Birmingham, Ala., and Charleston, S.C.

EchoPark revenues were $507.1 million for the quarter, up 53% vs. a year ago. Pre-tax earnings for EchoPark were $2 million, down 4%.

Sonic, based in Charlotte, N.C., opened its first EchoPark location in late 2014.

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