Part 3/12:
Looking back, the dealer highlights a stark drop in sales volume. In 2019, his dealership averaged about 90 cars sold per month—a volume that now has halved to approximately 50-60 cars during the off-season, with slight bump during tax time. This decrease signifies a roughly 50% reduction over a six-year span, illustrating how much the market has contracted.
He emphasizes that the car market's volume-driven model, heavily reliant on large dealer networks and manufacturers' volume targets, has been disrupted. Manufacturers used to profit from volume incentives and back-end products like warranties and insurance rather than from the profit margins on individual cars.