Not my monkey OR circus but, thought I would share a snippet from an update by my fleet rep. He‘s a cocky little rascal but, I hope he is just half right!
“Makers are attempting to get their finances in order post covid with all that has occurred including chip crisis, multiple union strikes and ev debacle. EV= Executive Vacuum! They are bleeding, shareholders screaming and executives are extremely nervous! They now have the components and are doing what they know best (and what they must do)—turning up production! Unions are getting paid regardless… Used cars are starting to pile up as Dealers attempt to prolong the once in a lifetime profits! Most dealers actually faired well through this but, the makers have been taking it on the chin! They have a full production mindset and inventory will build through year end. Dealers will be forced to take new inventory or lose incentives! Consequently, dealers will be heavily burdened to liquidate used inventories (already experiencing dramatic cliff in wholesale market). Dealer attempts at holding SRP pricing along with current rate rash curbing demand, new inventory will stagnate after the “newness” of availability wears off into new year. Makers will not stop the train of new inventory but, they will have to protect the dealers! The games will likely begin Q2 25 ahead of several new model introductions with consumer discounts, rebates and financing offers. Declining consumer fitness will drive makers to lower risk assessments and stretch terms with house lending arms.“