Dealers, slightly cautious about 2017, are holding the line on facilities expansions or renovations. More plan to trim new-vehicle inventory in anticipation of flat to lower U.S. sales. But overall, dealers are almost evenly split on their inventory plans.
NADA consultant Glenn Mercer says suburban dealers are most likely to sell out in the next wave of store consolidation. Rural stores have lower volume, but also are less subject to price competition. And suburban real estate is worth more, so the suburban dealer has exit options.