In the early days of the coronavirus pandemic, after used-car values plummeted and many dealerships closed, David Wilson went on a shopping spree. A large one.
David Wilson Automotive Group bought 700 used vehicles the week of May 18. Wholesale prices were still low but starting to rebound after plunging to their lowest point in April, according to J.D. Power.
Some retailers, with their lots full for the spring selling season, quickly moved to slash prices and liquidate their inventories in the early weeks of the crisis as shoppers stayed home and many state and local governments put restrictions on operations.
But Wilson went a different way. He had 2,100 depreciating used vehicles on hand at his 16 dealerships and lower customer traffic — but he knew he would need even more cars as business rebounded. That big purchase in May positioned his stores with 2,800 used vehicles as shutdown restrictions began to ease.