While enjoying my dinner the other night, I overheard a couple talking about their purchasing experience at a local car dealership, and how they felt misinformed by the sales rep. Being in the industry, I take an interest in hearing other perspectives and utilize the indirect feedback as a means for growth. After about five minutes, I invited myself to join, and they accepted the invitation.
Introducing myself, I began to ask questions regarding their experience and how they felt mislead. They stated that the sales associate was providing false information regarding pricing and market value, and that market value on a vehicle never goes up. In a professional manor, I interrupted the gentleman and provided professional, accurate information with regards to market value in today's automotive industry. While most think the value of a vehicle only declines, reality states the opposite, depending on circumstance.
With gas prices at a near record high, the value of small, gas fuel efficient vehicles has skyrocketed while having the opposite effect of gas guzzling cars, truck and SUV's. So can retail prices go up on vehicles? Sure! Market value is what dealerships base their pricing on, amongst other contributing factors, with the second factor being supply and demand.
Supply and demand is an intermittent issue in the automobile business as 99% of the time manufacturers are well stocked with labor and parts to assemble vehicles. With the recent tragedy in Japan, manufacturers both foreign and domestic are unable to produce product as usual, creating a shortage in new vehicles. With a shortage in new vehicles, comes an increased market value in pre-owned vehicles.
