Black Friday is one of the busiest shopping days of the year and although this year might look slightly different due to the pandemic, consumers are still expected to shop deals from home. But will dealers have more inventory? Joining us today to give us some insight on what dealers can expect this Black Friday, is Senior Managing Editor for Kelley Blue Book, Matt DeLorenzo.
Automotive analysts have found that the average discount on a new vehicle in October was down approximately 23% from last year. This trend is forecasted to continue through November as dealers continue to report record profits on new vehicles due to tighter inventory levels. According to Cox Automotive, there are 650,000 fewer 2020 model-year vehicles than what was expected prior to the pandemic. This has led to an estimated $800 decline in discounts per vehicle.
This means, that manufacturers will be less likely to offer large cash rebates and other incentives for Black Friday 2020. Car dealers are going to offer dealers like 0% financing because customers will likely end up purchasing a vehicle closer to MSRP. In this segment, DeLorenzo, and anchor Jim Fitzpatrick also tackle the following:
- How Black Friday 2020 compares to the 2019 market
- Franchises that consumers are avoiding this season
- Whether or not inventory is still a concern throughout this holiday season
- Manufacturer incentives to watch for
- The impact of digital retailing on Black Friday
- How digital delivery will impact gross profits for car dealers
- Trends that signal a rise in electric vehicle ownership
- What car dealers should be aware of this Black Friday
Did you enjoy this interview with Kelley Blue Book’s Matt DeLorenzo? Please share your thoughts, comments, or questions regarding this topic with host Jim Fitzpatrick at firstname.lastname@example.org.