The ongoing economic issues in 2020 are wreaking havoc on many sectors of the economy – retail car sails included. This is bad news for auto dealers, but could mean an unprecedented opportunity for savvy vehicle buyers. In fact, those looking to purchase an SUV could be in luck! Read below to find out more and learn the truth about unsold SUV prices.
Unsold SUV Prices Could Surprise You
Images of car lots full of unsold inventory are not something we see every day. We normally associate car dealerships with the hustle and bustle of sales and commerce… yet economic strain – such as what we’re seeing this year– can be a massive problem for car dealerships, and lead to huge buildups of inventory.
The truth is, auto sales isn’t exactly an easy business to begin with. For instance, did you know that most car dealerships try not to keep vehicles on hand for more than 90 days anyway?(1) They use short-term debt to purchase the vehicles, planning to sell them quickly. But when this doesn’t happen, it can lead to big problems, which can often benefit potential vehicle buyers.
It’s expensive running an auto dealership. Dealers have pay their employees, make the rent each month on the commercial real estate (or the mortgage payment on it if they own it themselves), and pay the financing fees on all the vehicles (as explained above).
Couple these expenses with an ever-growing number of unsold cars, and you’ve created a recipe for great deals to be had!
Major Types Of SUV’s
SUV’s are becoming more and more popular.(2) But many drivers aren’t aware of the types of SUV’s that exist, and how they are commonly categorized.
SUV’s are usually separated into four groups.(3) The first group is Compact Crossovers; the second is Crossovers; the third is Mid-size; and the fourth is Full-Size.
Below you’ll find a breakdown on each of these.
Compact-Crossovers – These are- as the name suggests- the smallest SUV’s, and can appear like a cross between a small car and an SUV. Two well-known examples would be the Honda CR-V and the Kia Sportage.
Crossovers – These are like the aforementioned Compact-Crossovers, just not as small. Examples might include the Kia Soul and the Toyota Rav4.
Mid-size – These are bigger than Crossover SUV’s but smaller than Full-size SUV’s. Despite this, however, they may still appear small to those who grew up in the 1980’s, when giant SUV’s with three rows of seats were the norm. Some of the most famous SUV’s are from this category, and two notable examples would be the Toyota 4Runner and the Jeep Grand Cherokee.
Full-size – These are the largest and toughest of SUV’s, and if you care about towing capacity and storage room they are perfect for you! Famous examples of Full-size SUV’s would be the Ford Expedition, the Chevy Tahoe, and the GMC Yukon.
How To Save On SUV’s
In previous decades before the internet came along, people tended to buy vehicles from the same local dealer over and over again, and it was much harder to find amazing deals or take advantage of unsold inventory.
My have times changed however! Today, the internet is a key part of the auto-buying economy. In fact, some estimates suggest that over 90% of people now do some amount of research online before buying a car. That is a staggering statistic!(4)
There are ample opportunities to find information on vehicles online today. One can watch videos on YouTube; see actual test-drives on models they’re interested in; read a practically never-ending amount of reviews; and even follow all the biggest car companies on social media!
Despite this, however, too many individuals are still paying too much for the cars they buy.
To truly make the most of your opportunity, you need to look for situations where dealers are desperate to sell cars, and economic problems leading to unsold inventory is a perfect example of such a situation. By researching unsold SUV prices, a potential vehicle buyer can give themselves a huge leg up on the competition, and potentially save significant money on their purchase.
Rare Situations Lead To Major Opportunities
Hopefully this article has been helpful for you! As noted above, SUV’s are becoming more popular than ever, but they are also getting pricier than ever… and any opportunity for vehicle buyers to save money is an important one to take note of!
By thoroughly researching the question online, it’s possible for regular folks to take advantage of deals on unsold SUV’s, which is certainly a silver lining in these times of economic uncertainty!