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RE: LeoThread 2025-01-03 09:38

in LeoFinance20 days ago

Part 3/6:

Overproduction has led to a surplus of vehicles that is now overwhelming dealerships. Manufacturers continue to produce cars at previous rates, yet consumer interest has waned, leading to an excess of unsold inventory. For many dealerships, this has triggered panic, especially among relatively inexperienced managers who have never witnessed such market fluctuations.

As sales slow, dealerships are forced to adjust their strategies. They are now prioritizing used vehicles, as these can be sold at more competitive prices and are more appealing to cost-conscious consumers. The observation that franchises are increasingly leaning on used vehicle sales highlights the changing dynamics within the market.

Exploring the Price Drop Phenomenon