TO THE EDITOR:
The perfect storm that dealers have enjoyed as a result of the COVID pandemic is, in my opinion, about to have run its course. Federal stimulus checks are winding down; both new and used inventories are depleted as a result of robust sales and the microchip shortage; and now President Joe Biden has announced the possibility of doubling the capital gains tax.
No question, dealer profits have been at unreal levels. Quality buy-sell deals are few and far between, as dealers are holding due to profits. Timing is everything in business. As a prior dealer, I am fully aware that once the retail train stops, it is a monumental task to start it moving again.
Soon, the manufacturers will get production back online and then flood dealer lots with inventory — the reverse supply and demand scenario that we currently enjoy. With excessive new inventory, the discounts begin.
If dealers are on the fence, the smart money says sell while the market is a total seller's market and the values are sky-high.
ANDY GILL, President, Gill Automotive Group, St. Augustine Beach, Fla. Gill Automotive provides merger and acquisition services to franchised dealers.