Forum Discussion
ShinerBock
Jul 12, 2020Explorer
FishOnOne wrote:
Your scenario would be true if the lot was partially or somewhat empty, but it was full which tells me the dealer ordered the trucks this way for a reason. Like I said in the past this dealer lot used to be ~ 95% Cummins and ~ 5% Hemis, but now it's 50% Cummins and 50% Hemis.
FYI, in the light duty world, dealers are forced to take on inventory by the manufacturer. It happens in the medium/heavy duty world too, but not as much since most are speced to order.
Basically, the manufacturers makes a lot of trucks(X amount of gasers and Y amount of diesels) expecting a certain demand for each kind and forces dealers to take them to move inventory around.
It depends on the size of dealer and what kind of relationship/pull that they have with their manufacturer sales rep, but in many cases in order for a dealer to get X amount of inventory they want, they are forced to take in Y amount of inventory they don't want. It is all a negotiation and of course the dealership that sell more of a certain type of vehicle will have more leverage.
I remember when the Harley Davidson Super-duties first came out. The Ford dealer group(who only sold trucks) I was working for at the time really wanted to get their hands on a few of them, partly because the owner wanted one. We had to take in a bunch of inventory to get them. We actually had to lease property around town to park trucks because not all of inventory would fit on our lots. It was a bad deal, but the owner wanted one.
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