WATCH NOW: Car dealerships dealing with inventory shortages, increased costs as industry prices rise – Kenosha News
Local used auto dealerships are facing a dearth of inventory and increased costs as demand for pre-owned vehicles rises.
Local used auto dealerships are facing a dearth of inventory and increased costs as demand for pre-owned vehicles rises.
Tim Anastopoulos, owner of Anastos Motors, said scarcity and demand are driving prices higher, which makes it far more difficult for folks on a tight budget to attain a quality used vehicle.
“The prices are kind of high right now for used vehicles — demand is driving the prices higher — because there’s no new cars on the market,” Anastopoulos said. “The manufacturers are struggling to put new cars out, so it makes the demand of used cars that much higher.”
Anastopoulos said his dealership, 4513 Green Bay Road, would normally have about 110 vehicles on site. They only had 60 last Wednesday. The dealership specializes in two- and three-year-old vehicles with low mileage. They’re 30 to 35% more expensive than about a year ago.
“The price of a two-year-old or three-year-old car is high,” he said. “The older cars, which are out there, are problem cars with high miles and are going to be something we do not sell here. We’ve been here for 30 years and when we get those cars, they need so much reconditioning.”
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Anastopoulos said he’s even taken trade-ins from customers, some of whom are making out better than ever with their car purchases.
“I’ve taken trade-ins from customers that I sold cars to, and I’m giving them more money than they paid two years ago,” he said. “In 30 years of my career in the car business, I’ve never seen anything like that.”
No additional revenue for dealer
Matt Lindstrom, owner of Car Corral, 6000 49th St., expressed similar sentiments.
“There’s been an increase in demand for certain vehicles like SUVs and pickup trucks, and the value of those has definitely gone up,” he said. “You can’t get new cars, and the demand is still there for trucks, which has always been a hot thing.”
Lindstrom said he has vehicles to sell, but the costs associated with purchasing new vehicles has risen about 30%.
“In the used car market, from the wholesale end of things, things are up an easy 30%,” he said. “It doesn’t help us at all. We’re paying so much more for vehicles. We’re not making any more of a profit margin or anything like that. We’re buying them on the wholesale market and then selling them on the resale side after reconditioning them.
“It’s not like we’re making any more money on them. It makes it harder because you have to explain to customers why we’re charging more for them.”
Lindstrom said the market “shows no signs of letting up” anytime soon.
Scott Dooley, co-owner of Carbox, 1750 22nd Ave., said he’s committed to helping as many people buy a used vehicle …….
