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Are Markups Coming Back in Q3 for Dodge? Banking Storm at Fault
Happy Father’s Day to all the Rippers and Mopar Gearheads out there!
Let’s talk Dodge Markups. Many channels have reported that deals are happening, prices are coming down, and inventory is piling up. This could be merely due to a higher supply than demand, or something else.
The SVB banking problem may be the root of the problem, as lending institutions were weary on issuing car loans across the board, for all types of car loans. This resulted in people being unable to get the loan, and thus, unable to buy the cars. This resulted in the stock piles of Challengers and Chargers, Scat Packs, Hellcats, Redeyes and Jailbreaks piling up on the lot.
Banks needed to keep liquidity on hand to prevent a bank run, but now, that fear is subsiding compared to the fear of not having enough loans on the books. Banks need to issue loans, to make money from the interest!
I do go over reasons why some sales with no markup occur, since dealers may be able to subside for a while without a car sale, but the sales personnel, salesman and saleswoman just can’t. If they don’t earn a commission they will quit and move to other careers. That’s why you can see a car sold with markup, followed up no markup on the same day at the same dealership.
This is a much more tricky problem, but strictly talking about the cars, this is a good opportunity to try to buy a cool Mopar, with a Hemi V8. As scarcity of these cars sets in, and the press from the final car being built, demand can only increase.
Good luck out there, and remember
Oil is thicker than blood!
0:00 Markups are Gone, Say Some
1:46 Finacing Cars with Markups
3:08 Economic Overview and Car Loan Implications
7:22 Banks Were Not Issuing Car Loans – No Car Sales!
8:46 The Car Salesmen Problem
10:50 Car Markup Dilema – Last Call
12:32 Banks Are Now Desperate to Lend
13:44 Last Call 2023 Dodge Advice
15:16 Four Elements of Heavy Metal Tshirt
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