Hammer Time: Used Car Market Feeling the Pain, Too
We just had the local Dodge dealership close down in Marietta. This coincided with one of the briefest sales I’ve ever seen at a nearby Friday afternoon sale. With that in mind… Dealers make a LOT of money off of trade-in’s and ‘we buy your POS’ lowball offers. No big deal. That’s always been a big part of any auto retailers bottom line. Until now. At a time when some of the larger dealer networks used to offer 80 to 100 trade-ins on a weekly basis at the dealer auctions, sources now say metro-Atlanta’s trade-in inventory is down by well over a third. Neutron bombed metro-Atlanta also appears to be fielding far more repos at these sales, and even a few high demand models that apparently are ‘Not needed in inventory’. With a local landscape that resembles the bad old days of Tecumseh Sherman, and a new emphasis on even finding reliable lending sources, it’s no surprise that even the billion dollar retail outfits are feeling more than a credit pinch.