Latest news with #dealerships
Motor Trend
3 days ago
- Automotive
- Motor Trend
How Tariffs Will Affect Used Car Prices
Since my last article on U.S. automotive tariffs, several manufacturers announced price increases on their vehicles for American consumers. The good news is these increases aren't as bad as we thought they would be, at least for now. 0:00 / 0:00 For example, Ford is planning to raise prices on certain models (mainly those made in Mexico) by about $2,000. Other manufacturers plan price hikes around $1,200. That's far less than the 25 percent tariff levied on imported cars, trucks, and SUVs, which could have raised prices on some vehicles by more than $5,000 and beyond. Evidently, automakers have decided to absorb some of the costs of the tariffs themselves and not pass them on to consumers. The bad news is some dealerships are experiencing shortages. Due to high sales in March while customers tried to get ahead of tariff-related price increases, many dealerships found their inventories depleted. This poses two problems. First, for consumers, it means fewer choices. You may have your heart set on a blue Toyota RAV4, but your local dealer may only have light gray, medium gray, and dark gray in stock. And because everyone's inventories are down, they may not be able to trade with another dealership to get you a blue one. That means you'll have to settle for whatever's available or put off your purchase until the selection is better. And second, for dealers, lower inventories mean fewer sales. Given so few Americans order their cars, there's a direct correlation between the number of vehicles a dealer has on the lot and how many it sells. If a dealership has 200 vehicles in stock, it should sell about half of those in one month. But if it only has 100 in stock, it'll only sell around 50 or so. And that affects a dealer's allocation—the number of vehicles the manufacturer sends it every month—which is based on the previous month's sales. It also means dealers have less flexibility when it comes to prices. If a Kia dealership has 10 new Sportages, it can afford a few skinny deals—or even losing deals—on three or four of those because it can make it up on the other seven. But if it's down to two, it's going to try to make as much profit as possible on those two vehicles. So what does the new car buyer do when they're facing higher prices and fewer choices? Simple. They turn to used cars. There has always been an excellent case for buying pre-owned, especially certified pre-owned (CPO). They cost less than new because, well, they're used, plus the value of most new cars drops like a rock the moment they're driven off the lot. When you buy used, you don't absorb that depreciation. Another great reason to buy used is that should you purchase a CPO vehicle, in most cases you'll get a longer drivetrain warranty than you would on a new car. But there's a catch. When demand for used cars goes up, used prices go up, too. Although tariffs aren't aimed at used cars, they will have the unintended effect of raising prices on those, as well. And parts. And service. It's a ripple effect that will have repercussions throughout the industry. In fact, some forward-thinking dealers have already raised prices on used cars in anticipation of this expected increase in demand, even though the full impact of tariffs hasn't really hit us yet. This is predatory, but in times like these some people will always try to take advantage of others. The situation with tariffs is still very much in flux. Things are changing every day, and it's hard to keep up, much less predict where everything will wind up. Inventories are already rebounding. Price hikes aren't as bad as we feared, at least not yet. Manufacturers are still shipping new cars to dealers. And used cars, especially certified pre-owned, will always be a good buy. So smart consumers can still get a good deal. It will just take a little more homework on current prices and inventory, flexibility on the vehicle or options you want, and striking when the opportunity presents itself.
The Sun
3 days ago
- Automotive
- The Sun
String of UK car dealerships to SHUT in weeks with dozens of jobs up in the air after being ditched by huge brands
TWO major car brands are set to stop trading with one of the largest dealerships in the UK. Staff at affected branches were left fuming after being informed of the decision earlier this week, putting dozens of jobs at risk. 5 5 5 Stellantis UK, who own huge brands including Peugeot and Vauxhall, confirmed it had terminated its contract with Marshall Motor Group by mutual consent. It means that Marshall, which represents 25 manufacturers, is set to close several of its 138 stores across the country. Six branches were unexpectedly closed earlier this year, with another four now also confirmed to be shutting up shop, potentially affecting thousands of customers. Three Peugeot stores have been culled, with locations in Gatwick, Cambridge and St Neots set to be shut down by the end of June. And one Vauxhall garage in Ipswich is also set to close its doors for the final time by the end of next month. Staff members at the affected shops were informed of the shock decision earlier this week following an internal announcement. Speaking to The Sun, a source said: 'Staff at all four branches have been told the exact same thing. 'There is a lot of purposefully confusing jargon being thrown around, but essentially they are not renewing the contracts with Stellantis. 'There are roughly 60 people at each location, so we're looking at dozens of jobs being put at risk. 'They didn't give staff any particular reason, it doesn't seem to make much sense to them.' It is not known whether Marshall plans to offload staff to other branches or take on new contracts at the eight closed dealerships. The motor firm declined to comment on the closures. Stellantis confirmed they would continue to sell cars in the same areas with new investors. In a statement, the firm said: "Stellantis UK confirms that, by mutual agreement, our retailer agreements with Marshall as a group has ceased at all their sites. "We have appointed new investors to represent our brands in the majority of these locations, therefore offering our customers continued representation for sales and service." It comes after Marshall confirmed in March it was "downsizing" its relationship with Stellantis. The firm axed Peugeot dealerships in Canterbury, Ashford and Peterborough. It also shut a Vauxhall store in Peterborough, with all four closing on March 31. 5 Employees at these locations were reportedly "blindsided" by this shocking news, according to Car Dealer Magazine. Staff were reportedly told about the sad news on February 28. An employee claimed: "We were blindsided by it to be honest, we just didn't see it coming. "When the directors came down to tell us last week, they said it wasn't linked to performance and it's because Marshall is downsizing its number of Stellantis sites." Marshall Volkswagen Horsham and Aylesbury were also culled at the end of March. A statement on its website read: "Further to a strategic review, Marshall Volkswagen Aylesbury and Marshall Volkswagen Horsham will close. "Its sales, service and parts operations, including the customer base will transfer to Marshall Volkswagen stores." Why are so many car dealerships closing down? By Summer Raemason According to Business Rescue Expert there are multiple reasons why car dealerships are folding across the UK. The first major factor is rising online car sales which are beating in-person sales at dealerships. With an extensive range of comparison and second-hand sites to chose from, may car buyers don't even step foot into a dealership anymore. Secondly, the actual cost to physically run the sites has soared. Rent, wages and energy bills have all been increasing for roughly the past five years, putting many out of pocket. Car manufacturing across the globe was also hit by a semiconductor chip shortage in 2022 which made it difficult to produce new motors. The high demand with limited supply created a backlog, which although has eased, is still having an impact on the industry. A third reason for recent closures is the shift to electric cars. They are becoming more popular, given the Government initiative to be Net Zero in 2050. The industry is also affected when companies merge or are bought by rivals. This may lead to some independent names falling victim to the ongoing spate of closures.
Auto Express
4 days ago
- Automotive
- Auto Express
Buying a nearly new car could save you serious money
When it comes to buying a car, plenty of people automatically gravitate towards a factory-fresh, brand-new model. That may be down to the allure of a zero per cent finance deal or a manufacturer incentive – but the reality is they might actually be paying more than they need for a new set of wheels. There is another option: ex-demonstrator cars. Advertisement - Article continues below Commonly advertised as 'nearly new' or 'delivery mileage' cars, these are new vehicles used by dealerships for test drives, showroom displays or short-term internal staff use. For those in the know, they can be a great way to save money. Admittedly, they are not technically 'brand new' because they will have been registered and used by the dealer. This means they've already had one owner and could have a few thousand miles on the clock – but this is exactly why they can be a smarter, cheaper choice for savvy buyers. Every new car suffers from depreciation, and an average model will lose between 50-60 per cent of its value in the first three years, with most of this happening in year one. With an ex-demo car, not only has that initial depreciation hit already happened, but it is factored into the reduced list price. Skip advert Advertisement - Article continues below For example, a brand-new Volkswagen Golf in Match trim starts from £28,185, but when we trawled the classifieds, we found a six-month-old, identically specced ex-demo car with less than 3,000 miles on the clock for £24,663 – a saving of more than £3,500. We also found you could save almost £2,000 on a top-spec Dacia Sandero Stepway that had recorded fewer than 950 miles. Ex-demo cars aren't sparse on kit, either. Manufacturers use them to showcase the best model and trim in a line-up. That means they are often fitted with optional extras or additional features costing hundreds, if not thousands of pounds. You'll still be covered by the bulk of the manufacturer's original warranty package, too. Dealers might even extend that or include additional services as part of the sale to provide extra peace of mind for buyers, sweetening the deal even more. So, what's the catch? Well, as we've said, you won't be the first registered keeper of the vehicle on the car's V5C log book, and it could have clocked up a few miles. But if you can overlook these points, ex-demonstrator cars provide an affordable way to get your hands on the latest model. Plus, you'll get one delivered much more quickly than you would a brand-new car. Buy a car with Auto Express. Our nationwide dealer network has some fantastic cars on offer right now with new, used and leasing deals to choose from... Find a car with the experts It's only a matter of time before Jaguar Land Rover builds a factory in the USA It's only a matter of time before Jaguar Land Rover builds a factory in the USA Mike Rutherford thinks Jaguar's 'Reimagine' strategy will result in the company exploring further opportunities in the USA Car Deal of the Day: Seal the deal on this BYD electric saloon for just £289 a month Car Deal of the Day: Seal the deal on this BYD electric saloon for just £289 a month The BYD Seal is a seriously tempting Tesla Model 3 rival, especially at this price. It's our Deal of the Day for 26 May Electric car drivers won't ever go back to petrol or diesel Electric car drivers won't ever go back to petrol or diesel Editor Paul Barker thinks the EV transition is coming whether we like it or not
Car and Driver
25-05-2025
- Automotive
- Car and Driver
When Is the Best Time to Buy a Car?
Timing may not be everything when it comes to buying a new car, but it's definitely an important factor. While the manufacturer's suggested retail price (MSRP) for a model generally stays constant over a model year, the actual price you pay at a dealer can vary. Spoiler alert: There is no perfect time to buy a car, no one-size-fits-all magic answer—it depends on a lot of factors, like which car you're buying, where you're buying it, and how much demand there is for what you want. And sometimes the decision is made for you. For instance, if your main form of transportation dies or gets totaled in a wreck, you may not have a lot of choice in the buying timeline. But even if you don't have a ton of flexibility, we'll arm you with the information necessary to get a good deal on your schedule. Seasonal Trends: When Dealerships Offer the Biggest Discounts The end of the calendar year and the end of a model year are two good times to buy. David Gluckman Contributing Editor Ever since David was a wee Car and Driver intern, he has kept a spreadsheet listing all the vehicles he's driven and tested. David really likes spreadsheets. He can parallel-park a school bus and once drove a Lincoln Town Car 63 mph in reverse. After taking a break from journalism to work on autonomous vehicles, he's back writing for this and other automotive publications. When David's not searching for the perfect used car, you can find him sampling the latest in gimmicky, limited-edition foodstuffs.
Independent Singapore
21-05-2025
- Automotive
- Independent Singapore
Car buying myths that could cost you — and what to do instead
Purchasing a vehicle is one of the major financial decisions many people make, and with it comes a deluge of well-intentioned guidance from work colleagues, family members, friends, and even TikTok 'gurus.' While a few advice are beneficial, others are just outmoded myths camouflaged as insight. Many of these 'wisdom-laden' insights are entrenched in how the car industry worked many years ago. Currently, the market requires shrewder strategies, not just because of modernisation, but more because of the high cost of living that is experienced by people globally. According to a recent article published by Money Digest , here's a breakdown of a few of the most tenacious myths — and how to navigate, dodge, or sidestep them. The 'always pay cash' trap For most people, cash is king. But with a car dealership, that isn't always true. In reality, informing a seller that you plan to pay in cash can damage your negotiating power. And that is because dealerships usually make additional money through what is called a dealer reserve — an 'extra' they collect when clients get financing through them. This bonus characteristically increases 1–2% to the bank's loan rate, meaning financing can be more lucrative for the dealer than the conventional cash sale. See also Top 3 Places To Sell Your Used Phone in Singapore 2017 To retain the power in your hands, focus on negotiating the 'out-the-door price,' that is, the overall price including levies plus charges, before you discuss your planned payment scheme. Once the price is set in stone, you can choose whether to get financing through the dealer, bring your own financing, or pay cash directly. In certain instances, financing can save you money, particularly if the builder is providing 0% APR transactions. These promotional deals can mean you can derive money interest-free, frequently making the total cost less than buying in cash. Just see to it that you have compared offers and made sure you're not being talked into a premium option or persuaded to get redundant add-ons. The 'dealer financing is a rip-off' assumption It's convenient to set aside dealer financing as a trick, but that mentality could mean missing the chance to get real savings. Carmakers normally run promotions via their agreements that propose sponsored interest rates as low as 0% or 2% for eligible customers, rates that are usually better than what banks or credit unions can deliver. See also Olam Food Ingredients secures S$665.29M financing backed by SACE Nevertheless, dealerships don't typically publicise these transactions openly, particularly if they can see that a buyer has not done their homework. That is why walking in with a pre-approved credit from your bank or credit union is a clever idea. It gives you the yardstick, a rate the seller must surpass to win your business. Smarter buying means better deals The car market is growing and evolving fast, and so should your procurement approach. Whether it's how you pay or who you will finance the purchase, keen, up-to-date choices are the key to getting your money's worth and getting the most value from your succeeding automobile acquisition.
