Short Supply Market Conditions, Explained

Import Manufacturers to the US marketplace allocates vehicles to dealers based upon their prior (period of time) sales of certain models. When a dealer receives an “allocation” of cars, this list denotes specific vehicles to be produced, with the color, trim, and options, etc. For example, if an allocation of cars were given to day to dealers in a specific geographic region, the cars would likely arrive at dealers 5-6 weeks in the future. Most manufacturers typically give two allocations per month. Dealers in any given geographic region meet collectively with the manufacturers to agree upon typical factory options to be added/built onto specific model groups.

Due to the proliferation of models by any given manufacturer and the multitude of different option configurations within a model group, no one or geographic group of franchised dealers will have an extensive selection of models from which consumers can choose. For this reason most dealers generally agree to trade inventory (dealer trade) amongst one another, ultimately to satisfy individual customer orders/demand. This process is called “dealer trade”.

As part of my full service offering to my clients, I seek out vehicles to meet my clients’ desires/orders at no less than 3 dealerships, many times as many as eight, as market conditions demand.

If my research results in locating NO available vehicles to meet my clients’ order, I will expand my search to vehicles (in the pipeline, that is to say vehicles that are nearing the completion of assembly to cars that are in transit to dealers), or expand the geographic search. Due to the high cost associated with transporting a vehicle by commercial truck carrier, at some point this option is not cost effective.