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More customers test-drive online car sales

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Car lots look a little emptier these days, just ask John Koerner.

“We used to stock anywhere from 1,300 to 1,500 new units on the ground any day,” said Koerner, executive general manager for Healey Brothers dealerships. “Today, across our 11 brands, we’re running about 200 vehicles on the ground on any given day.”

Supply chain issues have caused these shortages, while demand for vehicles has skyrocketed. And that dramatic difference is being felt by dealerships and customers all across the country, including at Healey Brothers Ford in Goshen.


What You Need To Know

  • Supply chain issues are affecting a variety of industries, including car dealerships
  • A shortage of computer chips for new vehicles has made it harder for dealers to keep up with the rebounding demand for cars
  • According to the AP, automotive sales in 2021 were up over 3% from 2020

Koerner said the seller’s market has completely changed the way people buy cars.

“It’s transitioned the car-buying experience from one of being in the showroom to one where you can basically do the entire process online,” he said. “So now they come in or they go online, and they spec out the vehicle that they want, and we actually factory order that vehicle for them.”

The demand for new vehicles has bounced back after sales dropped at the start of the pandemic.

“Discretionary income expense didn’t go out like it normally would,” Koerner said. “People had some money left in the bank when the economy began to resurge and now they’re looking at the vehicles that are out there today.”

And it’s the smallest part of vehicles causing this disruption, as issues with getting computer chips into the cars has been the driving factor in this supply shortage.

“When COVID came, the manufacturers didn’t think the rebound was going to be as quick as it was,” Koerner said. “But when the industry came back faster than they expected, the chip manufacturers were unable to supply them with the chips that were needed.”

Koerner said he expects this trend to continue. So they’ll have to continue adapting to it.

“Our industry is going to be in a high-demand market, at least the next 18-24 months,” he said.

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Utica Phoenix Staff
Utica Phoenix Staffhttp://www.uticaphoenix.net
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