Yesterday, my wife had to take her car in to the dealership for a recall. So, being a economic geek, I did my normal "boots on the ground" analysis.
Dropping the car off last night, I was trying to get some information on where to put the keys and our information. The first guy I talked to said this was his first day on the job and had no idea. He walked away through the parking lot trying to get signal on his phone (he will be gone soon). The next guy wasn't much better. So, I went looking for the manager who was very knowledgeable.
They had just hired 20 new salesmen. The dealership went from 250 cars moved 3 years ago to an expectation of 1100 now.
There are about 10 dealerships on this street. The lexus dealership had just redone their whole storefront, Mercedes had done the same, a kia dealership was being built. Other dealerships were expanding into adjacent properties.
When we picked up, the dealer had a doorman, a valet, shuttle services, etc. It was like a circus. They had a person doing about every kind of service.
Now, new auto sales are peaking and we are in the downhill slide now. Dealerships seem to be as bad as individual investors - expanding at exactly the wrong time.
