Some people seem to think that there is way too much inventory on dealer lots. All we have to do is persuade customers in America to change their buying habits and order cars to be built for later delivery, and we'd save lots of money.
Of course, that notion doesn't take into account all the dealers who would still have inventory and get all the sales to customers who won't wait. Import brands, which must pre-stock dealers because of long supply lines, would be happy to take a lot of competitors' sales.
I recall one manufacturer years ago decided to have huge regional supplies of cars that dealers could access overnight for their customers. It would save dealers a lot of floorplanning money and give customers a large choice from the master lots. It didn't take long for that idea to die. Customers wanted to buy a car and see it now. They didn't want to wait overnight.
More recently, the marketing push is toward getting a buyer's car delivered within an hour. Now that's instant gratification.
Half of Europeans want to order cars to their specifications, even though that can mean waiting weeks for delivery.
Americans want to buy cars like meals at a fast-food restaurant. They want cars now, and they want the dealer to have enough choices to make them happy. If a customer has to, he or she will let the dealer swap for the right color or equipment.
But the attitude is: Don't tell me I have to wait months for my car, unless it's a Ferrari. I want it now, and I want to drive it home now. Or I'll just go somewhere else with my money and buy my new car off a lot.
Getting rid of inventory is a great idea, but build-to-order is not going to work and the dealer who keeps his inventory will get the business.
If you want to try to change the long-standing habits of American consumers, good luck. Americans want everything right now. Whether it's a new TV or lunch at a drive-thru, we don't want to wait.
The reason U.S. auto retailing is so successful is that dealers give consumers what they want. Most consumers want to buy their cars on the spot. It's nice to suggest that millions of dollars could be saved by eliminating inventory. The trouble is that millions of sales would be lost.
Sometimes there are great ideas that just don't make sense.
Sorry, I want to buy my car now.
