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Making Markets
Episode 5 Under the Hood of the US Car Market
Making Markets

Episode 5: Under the Hood of the US Car Market

Making Markets

Episode 5

Under the Hood of the US Car Market

Hosted by Eric Golden

11.24.2023

  • Automobiles
  • Transportation

CarDealershipGuy is an auto market commentator. We cover why auto dealerships are great businesses, the condition of the market in 2023, and the auto workers' strike.

(01:46) - First Question - How he got the name The Car Dealership Guy 

(03:59) - He tells us about his background in the car industry 

(05:23) - His car career before CDG

(06:23) - The benefits of owning a new car dealership

(08:20) - Competing dealership franchises and building rules 

(08:44) - He debunks myths around manufacturers and poorly run dealerships

(09:36) - The benefit of consolidating dealerships

(11:15) - Where the profit margins have come from over the past few years

(11:46) - Covids effect on the new and used car markets

(13:56) - How working from home during the pandemic impacted sales

(15:00) - Used versus new and the competition between the two markets

(17:00) - The economics of a used car life cycle 

(18:33) - Demand for used cars and how they change dealership purchasing 

(20:07) - High-interest rates and potential market risks that could affect the market

(22:16) - He gives insight into the high-end vehicle market

(23:39) - Tweet How dealerships and manufacturers sell cars that aren't moving

(25:24) - How a new car dealership owner loses money   

(27:12) - The tradition car sale and its ability to change 

(28:46) - Leasing versus buying and which one is better in today's market

(30:41) - Why leasing is popular and its benefits to the consumer

(31:24) - Tweet Reaching an inflection point in the car market 

(33:00) - The average consumer and their interest in tracking car prices

(34:27) - He explains how dealers expand their inventory

(34:49) - How the strike has impacted the industry 

(37:35) - He explains why car dealers are more like gamblers

(38:27) - The potential disruption the strike could have on the future market

(40:07) - Using auction markets as a barometer for prices

(40:56) - The most important type of vehicle to watch for market value positioning

(41:47) - Depreciation and resale on both electric and combustion engine vehicles

(44:41) - He talks to us about CDG and his podcast  

(47:02) - What would be a good $100,000 car purchase and what would be bad

 

11.24.2023

Hosted by Eric Golden

  • Automobiles
  • Transportation
Under the Hood of the US Car Market
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Introduction

Eric
Hello, everyone. I'm Eric Golden, and welcome to Making Markets. This show explores the psychology and structure that make up markets all over the world. Each week, we speak to experts about a different market, so you can see what actually happens when money changes hands. From mainstream stock and bond markets to esoteric ditches like vineyards, antique art, and crypto, we explain the transactions that underpin our economy. Making Markets is part of the Colossus family of podcasts. And you can find all our podcasts, including edited transcripts, show notes and other resources at joincolossus.com.

CDG's Backstory

Eric
My guest today is the anonymous Twitter account, CarDealershipGuy, also known as CDG. I was excited for this episode because it combines two of my biggest interests, markets and cars, and CDG did not disappoint. We cover a lot of ground, starting with why car dealerships are such great businesses. We then talk about the state of the car market in 2023, the Auto Workers strike, discounting and lending and a lot more. Please enjoy my conversation with CarDealershipGuy. CarDealershipGuy, thank you for joining me. I'm excited to do this.

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