Like most of the big headlines from the automotive world, this one caught a lot of folks by surprise. In fact, auto dealerships around the country went into lockdown for days as news of the news filtered in. It’s one thing to see the sales of Toyota Camry and Lexus RX up but it’s quite another to see sales of Toyota Prius, Nissan Altima, Chevrolet Malibu, Honda Accord, Honda Civic, Subaru Forester, Ford Focus, Volkswagen Golf, and Lincoln MKZ increase.
Well, you don’t have to worry about that auto dealerships around the nation are going to give a cursory glance at all of the automotive news. The auto industry has long been synonymous with the news media. As a matter of fact, all of the auto dealerships in the United States will have major news sections devoted to them and their products. By the end of the day, there is bound to be some good stuff for you.
First and foremost, if you are not familiar with the auto business, you may not be aware of just how much power it has over the rest of the auto business. Most of the car dealers in the country have a direct line to the president of the United States. That’s a direct result of the laws of supply and demand.
The US Treasury Department has directed that no less than 30% of all car purchases must come from dealers. They figured that those car buyers will be able to use their payment cards, buy more cars, and do much more with their purchases. They also figured that car buyers would be inclined to buy more of the same brand name. Of course, they weren’t entirely wrong.
Remember that when someone purchases a new vehicle, the dealer makes money on the deal. They also make money on a lot of other things in the business, so that it’s difficult to look at that figure as anything but an incentive for the dealersto carry a very high volume of vehicles in the marketplace.
At least with the vehicle you buy for your family, you are making a decision based on the convenience of being able to reach your destination without having to stop to let someone pick you up or to have someone drive you to the other side of town. So, is the auto business about making money?
I think the answer is a resounding yes. You have probably read all of the articles about how the auto business is growing and how it is very profitable. Just think about all of the cars you will be able to drive to work in the future.