When you click on links to various merchants on this site and make a purchase, this can result in this site earning a commission. Affiliate programs and affiliations include, but are not limited to, the eBay Partner Network.
Do you think the dealership footprint will shrink?
It seems to me that all dealerships, not just luxury and Porsche, are enjoying some new levels of income they may not want to pass up in the future. The money that could be saved by no inventory, orders only, etc., are tremendous. Is this the new "Dealership", or is this chip crisis truly temporary that will not be capitalized upon? Please share your thoughts as well.
Some people say this new business model will eventually go away others say it's here to say...hard to say in the long run but I personally do not see any discounts happening for luxury brands for the next few years. Even more common luxury brands like Mercedes and BMW are enjoying the extra margins now that there is no need for cash back incentives, etc. (the Manufacturer pays for all of those dealer incentives). Why rock the boat and revert back to chasing volume?
A 911 is a unique car and it's worthy of staying attached to the dealer network, as they make this (permanent) move to ADMs over MSRP/no inventory pricing model. But I am done with BMW and MB as everyday cars. Turned in my previous 5 series and didn't replace it. There is really nothing special about the basic BMW/MB cars (3/5 series, C/E classes) worthy of paying these kind of marked up prices for, as everyday drivers. If you want an AMG or an M car, then fine. Not sure if these brands are looking at how many of their repeat buyers have broken off and walked away now, they probably don't care as profits are high now and customer retention isn't an issue for them.