Auto Dealers hit record profits in 2022
You might have heard how car sales are at some of the lowest levels in years, and it is true. In December of 2021 sales were at levels we have not seen since December of 2014. And this is a pattern that was seen throughout all of 2021. The pandemic, changing lifestyles, work from home, less of a demand to commute and the semiconductor shortages have all led to decreased demand.
But that doesn’t mean that car dealers are struggling to make ends meet. In fact, the opposite is true. Today the average dealership is reporting a net profit of over $3 million through October for 2021. To put this in context it is double the profits of the same time period in 2020.
Both new and used car dealerships are profiting more and more on each vehicle sold through sneaky tactics like lengthening finance terms and playing with the purchase contracts.
In 2021 the average profit per a used and new vehicle was between $3500-$4000. And in December of 2021, it was just over $5000 per vehicle!
How can this happen?
These types of inflated profits are made possible by the structure that car dealerships operate on. A car dealer is the representative of a specific make of car and can only sell that type of car. They buy their vehicles at a certain price under contract and have no flexibility to shop around for better deals to pass onto their customers.
The inflexible pricing model starts from the top and works its way all the way down to the customers. This is true even in times like these when demand is lower and naturally you would expect prices to drop (and profits) in order to continue to make sales
Lease Brokers Pass the savings on to you!
Car lease brokers, on the other side of the spectrum, operate on a completely different model. Online car lease brokers are able to offer the lowest car lease deals, nationwide, by offering virtually any make and model of car. We are not under contract by the car manufacturers to only sell one type of vehicle. So when we get a better deal on a Honda, or a Toyota or Mercedes we have no incentive to push one over the other. We have built one of the largest networks across the country so we can get all trims of any model no matter where you live. Although our Headquarters are in NYC, we service customers from coast to coast and even deliver directly to your door.
By providing more options and more flexibility to our customers we are making the car lease markets more accessible to everyone. A more competitive market means lower prices across the board, and if a dealership doesn’t keep up, it will go out of business.
We pride ourselves in not only offering the lowest prices but also making your shopping experience as easy as possible. No tricky fine print, no pushy salespeople, and no limits.
If you are tired of the high prices of car dealerships contact us today:
VIP Auto Lease 1204 Hylan Blvd, Staten Island, NY 10305 (718) 477-7888 https://viplease.com/