Today's guest is the anonymous Twitter account CarDealershipGuy, also known as CDG. I was excited for this episode because it combined two of my biggest interests - markets and cars- and CDG did not disappoint. We cover a lot of ground, starting with why car dealerships are such a great business. We then talk about the state of the car market in 2023, the auto worker's strike, discounting and lending, and a lot more. Please enjoy my conversation with CarDealershipGuy.
Note: this episode was recorded on 20 October, before the Auto Workers strike was resolved.
For the full show notes, transcript, and links to the best content to learn more, check out the episode page here.
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Show Notes:
(00:01:50) - First Question - How he got the name The Car Dealership Guy
(00:04:03) - CDG's background in the car industry
(00:06:27) - The benefits of owning a new car dealership
(00:08:24) - Competing dealership franchises and building rules
(00:08:48) - He debunks myths around manufacturers and poorly run dealerships
(00:09:40) - The benefit of consolidating dealerships
(00:11:19) - Where the profit margins have come from over the past few years
(00:11:50) - Covid's effect on the new and used car markets
(00:14:00) - How working from home during the pandemic impacted sales
(00:15:04) - Used versus new and the competition between the two markets
(00:17:04) - The economics of a used car life cycle
(00:18:37) - Demand for used cars and how they change dealership purchasing
(00:20:11) - High interest rates and potential market risks that could affect the market
(00:22:20) - He gives insight into the high-end vehicle market
(00:23:43) - How dealerships and manufacturers sell cars that aren't moving
(00:25:28) - How a new car dealership loses money
(00:27:16) - The traditional car sale and its ability to change
(00:28:50) - Leasing versus buying in today's market
(00:30:45) - Why leasing is popular and its benefits to the consumer
(00:31:28) - Reaching an inflection point in the car market
(00:33:04) - The average consumer and their interest in tracking car prices
(00:34:31) - He explains how dealers expand their inventory
(00:34:53) - How the strike has impacted the industry
(00:37:39) - He explains why car dealers are more like gamblers
(00:38:31) - The potential disruption the strike could have on the future market
(00:40:11) - Using auction markets as a barometer for prices
(00:41:00) - The most important type of vehicle to watch for market value positioning
(00:41:51) - Depreciation and resale on both electric and combustion engine vehicles
(00:44:45) - He talks to us about CDG and his podcast
(00:47:06) - What would be a good $100,000 car purchase and what would be bad
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