Part 2/12:
One notable trend is the increasing number of independent dealers selling more of their cars at auctions. This surge suggests that many dealerships are financially strained. The dealer shares, "A lot of these car dealers are actually very, very, very weak." He observes a pattern where sales are sluggish, especially for vehicles priced under $5,000, which have been sitting longer and are harder to move.
He personally reports a challenging six-month period with zero profit—an unprecedented situation after 14 years in the business. This downturn is not isolated; it reflects a broader industry malaise, especially among mid-tier dealerships that dominate the market.