Dealerships are leaning on fewer staff to sell used cars after the global chip shortage slashed inventories: 'Haggling has gone out the window.'
left dealers with few cars to sellDealerships laid off thousands of salespeople at the start of the pandemic. While some have been rehired, about 70,000 people who worked at new-car dealerships have been permanently let go.
“We are not going to get back to pre-pandemic employment levels,” Mr. Cannon said. “Why would you immediately rebuild staff if you’re running more efficiently?” “With the chip shortage there’s less volume to handle and because profit levels are so high, it’s a good time to experiment with staffing,” he said.
Salespeople don’t really negotiate prices because the car shortage means customers have to pay the sticker price, or very close to it, said Kyle Hunter, co-owner of the Meador Dodge Chrysler Jeep dealership in Fort Worth, Texas. “A lot of the haggling has gone out the window,” he said. , where customers have the option of completing their online purchase transaction then picking the car up at that location.A personal, guided tour to the best scoops and stories every day in The Wall Street Journal.Nick Downey, a 32-year-old car salesman at White River Subaru in White River Junction, Vt., said he used to spend days showing customers around the lot, where between 100 and 150 new vehicles were parked and ready to buy.
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