In response to low inventory and limited options, consumers are more open to sold orders. Haggling, test-driving, and discounts are less common than they once were, and many cars are sold — sight unseen — before they even arrive on the lot.
Used cars are also more popular thanks to low inventory — from March 2020 to September 2021, used car prices increased by almost 40%. For some people, purchasing a used car that’s available right away is a more attractive and realistic option than waiting weeks or months for a new car to arrive.
With inventory in short supply and used vehicles gaining in popularity, dealers have more opportunity than ever to earn more per deal both on front- and back-end profit.