44 minutes ago
- copy link
Instead of discounting the price, the cars became expensive, yet the craze to buy the vehicle.
Lots of 40 SUVs are going to arrive at our Columbus dealership in the next two to three weeks, but that will be only a matter of hours. Because most of the vehicles have been booked, or people have paid in full. “Bazaar mein craze si hai,” explains car dealer Rick Rickart. Rickart’s family has been involved in the business for years. They say that this is the situation in the whole of America.
Mark Scarpelli, owner of a car dealership in Chicago, says he has never seen such eagerness before. He has 500-600 cars in his stock. But these days there are hardly 50 left. Cars are disappearing as the lot descends. Not only new but also the demand for used cars is huge. The situation is such that dealers are offering old customers through phone and e-mail to buy cars sold years, two years back.
According to data released by the US government this week, the prices of used cars have increased by 45% in a year. Prices of new cars, SUVs and pickups have also gone up by 5%, but people are not bothered. According to experts, economic reforms, lower interest rates, savings during the epidemic and stimulus package are the big reasons.
Unemployment rate is high, yet people have money left. Loan is easily available. So people did not hesitate. According to Automotive Consultant Alan Haig, the strong demand has boosted the profits of dealers. The days of discount are over, now even at the price fixed by the manufacturer, dealers are earning by adding the desired charge.
Repair shop timings increased
Due to the increase in the demand for used cars, the workers at the repair shop have to work for 10-12 hours. He could not go home for three or four days. So that delivery can be given on time. However, he is being given two-three offs simultaneously for rest.
People are buying luxury sports cars worth up to 95 lakhs by paying cash
According to car dealers, even those luxury and sports cars costing more than 75 lakhs were sold out within minutes, which used to have very few inquiries. Parents are buying these cars for teenagers. Rickart states that the most expensive ever sold at one of his high-end dealerships was the Shelby pickup at Rs.95 lakhs.
He wondered who would buy it. But it was sold out the same day. And the customer paid for it in cash. People associated with the industry tell that people have a lot of cash kept with them. Therefore, even if the preferred model is not available, they are buying cars by paying a higher price.