Review Car

Dealers Should Prepare for Worse

Everyone has been made aware of the situation that we are feeling due to the earthquake that struck Japan. More and more plants are running out of essential parts that are needed in order to manufacturer the cars correctly and because of this many people are finding themselves out of a job. However, a new aspect that may have not been considered before is the fact that due to the shortage of new cars and the fact that many dealers see this as not getting any better soon, many automakers have said that it could be until late July or even September before a new shipment becomes available. To answer this, dealers are stocking many used cars on their lots just to keep business coming in and to somehow keep the car lot open. 

However, now dealers are faced with another problem. They are paying outrageous amounts for these used cars and are often finding that they are simply paying too much for them and not being able to sell them for the amount that they paid, yet alone make profit from the sale of these cars. And the end doesn't seem to be near anytime soon as most analysts are predicting that the cost of used cars is going to continue to rise since the demand for new cars is not going to be met due to the quakes. 

So what are auto dealers to do? There really is nothing that they can do, but hang on and hope that this problem is going to end soon. They are going to need to stock their used inventory so that they can still stay in business. However, even then with the economy and the high price of the used cars, the dealers should be expecting some major down time of not having many sells in the next few weeks and months. Being prepared is going to help lessen the burden that they are going to feel due to the problems everywhere.