This change won't happen overnight but it is what every manufacturer is doing in America at least. A lot of those "inventory' vehicles are not on the lot yet or coming soon.
They are going to a much more lean model. Less waste and can maintain price better without tons of aging units they have to sell before they get older.
Makes sense. Having 100s of the same model never did make much sense. Takes up real estate. Gotta keep them clean. Gotta keep them secure . just tons of waste throughout.
I welcome the change.
This can't possibly happen with the legacy mfg-dealer model. Manufacturers book the revenue when the vehicle is shipped to the dealer. Consumers buy from dealers. The manufacturers customers are the dealers, not the consumers.
The manufacturers that do direct-to-consumer models like Tesla control their process and have a much cleaner situation. Never heard of a Tesla "dealer" with a 4-square, first they don't have dealers, just delivery centers, and second they have transparent pricing because there's no middleman trying to work an additional profit.
Manufacturers have an incentive to maximize their own profit, which generally means running factories flat out.
Most Americans want to see and feel what they will buy - especially something as expensive as a home or house purchase. Most Americans aren't in a financial position to have a car order in the hopper with the expectation that their current vehicle will be a total loss or beyond repairable in 3-6 months time.
A manufacturer can choose to have the order-only model but they're leaving a lot of volume on the table for their competitors to gain market share. I only see an order-only model viable for exotic car manufacturers - not a mainstream auto manufacturer.
Oh, you haven't heard. I would argue that Tesla is in a position where it has to respond to competition it didn't have a few years ago:We call this a change.
Covid facilitated this change.
Manufacturers and dealers got to test run something no one though possible.
Even ****** cars were getting marked up or pre sold.
Gross on vehicles during covid was incredibly high.
The lean model is the new model. The pre sold model is the new model. The placing your order and waiting for your vehicle is the new model.
It is new. As in has not been done. As in goes against the status quo. As in tesla and its ilk are also a driving force behind these decisions.
Tesla offers $3,750 discount for Model 3, Model Y deliveries in December | TechCrunch
Tesla's discount might be a way to boost Q4 sales as many customers push deliveries to 2023 to be eligible for the EV tax credit.
techcrunch.com
And it's a reaction to losing market share from competition:
Tesla still owns US EV market but is losing market share, shows new data
S&P Global Mobility released new EV sale data that show Tesla still owns the US EV market, but it is losing market shares.
electrek.co
Tesla is offering a $3750 rebate on Model 3 and Model Y if you take delivery this month. If you ordered a Model 3 today, you would be able to take delivery in December per their website. If anything, Tesla is going more towards a volume model because the competition has increased. That's how much and how quickly the car market has changed in the last few months.
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