Tuesday, April 27, 2010

What's Going On With Inventory?

Fleet/Inventory Manager, Charlie Nicgorski Writes:

Is it just me or is there a shortage of vehicles this year? I notice it's been especially hard to find some of the most popular models GM makes.  Even finding the full size SUV's like Yukons and Escalades has become challenging.

As the inventory manager here at Keyes Woodland Hills Buick GMC and Cadillac, I can tell you first hand that it's not you! 
After the major shake-up in the real estate, financial and automobile industries, things have changed dramatically. The good thing is that GM is now even more committed to building the most reliable cars in the industry while working to be financially viable in an ever-changing global business climate.

Because of this fact, GM has decided to get away from just over producing volumes of cars and then 
having to "push" them on the market with large rebates and offers that wind up putting the company in the red.  This is how GM got into trouble in the first place.  Instead, GM has moved towards providing vehicles that people want with pricing closer to the actual market value.  Basically, what they will actually sell for. 

Of course in theory this all sounds reasonable.  However, I understand how it can be difficult for a consumer who is used to the days of row after row of the same car in varying colors and options to choose from with super heavy rebates of $10-15000.  For the most part, those days are gone.  We are in and will have to adapt to the "new" world of auto purchasing.

The good news is, business is picking up!

Cars that have been selling like crazy and are in limited supply are vehicles such as the Buick Enclave, GMC Acadia and the GMC Terrain. Production still hasn't been able to keep up with demand.

But what about the full size SUV? Are folks still driving those things? Actually they are. Even though many folks have been downsizing, some people still need the room and towing capabilities of a full size SUV. But GM has been building far fewer of these than in years past. Recently, GM gave us a one month allotment of only 2 Yukon XL's. That means for a store that normally sells 3 to 5 a month, we get 2.  This includes any 3/4 ton, basic Yukon XL or even Denali XL models. 

I understand how this can be difficult for any client to understand.  Also, when you're used to seeing a sea of Yukons, how this could look like a "sales tactic" designed to create "urgency," but in reality, this situation is not unique to any one particular dealer or area, all GM dealers right now must contend with it.

So what can you, as a consumer, do? First off, you might want to consider flexibility. Perhaps have multiple
colors choices in mind. Could you live with a different interior color? Perhaps there are options that can be added at the dealership level or maybe you can accept certain items that you thought you didn't want. Remember that even though most dealers are willing to do trades for you, the best deal will always be on finding a car that you can buy right from the dealer's inventory.
What if you cannot compromise on a single item and don't find what you want? 
Then you may want to consider the option to order the car. This process usually takes 6-8 weeks, but you get the vehicle exactly the way that you want it. This year we have been special ordering cars in much larger numbers than in previous years.

No matter what or how you decide to purchase, please be assured that the automotive 
professionals here at Keyes Woodland Hills Buick GMC and Cadillac remain committed to finding the right vehicle to fit your lifestyle.

Charlie Nicgorski
Internet/Fleet Sales Manager
Keyes Woodland Hills Buick-GMC-Cadillac
6133 Topanga Canyon Bl
Woodland Hills, Ca 91367
818-348-4352 x122

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