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Aug. 6, 2020
This paid piece is sponsored by Luxury Auto Mall.
Thinking about a new vehicle? So are many of your neighbors in Sioux Falls and beyond.
“We’ve been extremely busy,” said Mike Chaplin, general manager of Luxury Auto Mall. “And we have seen more people from Minnesota, Nebraska and Iowa come to Sioux Falls than I’ve ever seen because they’re not as open and this market is thriving.”
Combine the extra interest with limited supply and it makes for an interesting time in the auto industry.
“But there also are some really exciting opportunities right now if you understand how to take advantage of what’s happening in the auto market,” Chaplin said.
Here are four things to know about the market today before you head out to search for your next vehicle.
Start with this: Your trade-in vehicle likely has never been worth as much as it is today.
“We need your used car, and we need it today,” Chaplin said. “We’ve been paying extra for trades.”
What’s happening? A few things. Just as shoppers are looking for new cars, they’re looking for pre-owned ones and buying fast.
“We’ve traded cars in and have sold them before they even go through a reconditioning process because there’s that much demand and it is all pent-up from during COVID,” Chaplin said.
“This time of year, we typically see strong demand for pre-owned cars anyway as kids head to college, but we’re also seeing huge demand for our certified, pre-owned vehicles. Some days we’ll have four or five Cadillac Escalades, and the next week they’re gone.”
Dealers also aren’t able to access auctions or buy former rental car loaners as they typically would, he added.
“If you have a really nice vehicle and you think you’ll trade at some point, now is the time to go to the dealership and do it,” Chaplin said. “Our struggle is to fill that bucket, and there’s just not enough supply unless we trade people out of the cars they’re driving.”
Luxury Auto Mall also offers a real-cash trade, the value of your vehicle regardless of whether you buy another one from the dealership.
“We pay the same amount regardless. We’ll pay as much as we can, and that amount will not change regardless of what vehicle you buy from us or whether you buy one from us at all,” Chaplin said.
Vehicles sales have been strong for many reasons – including pent-up demand and drivers’ desire to treat themselves after a long spring and summer.
“Many are saying this was something they were going to do anyway, but it’s exciting to do it now. They can reward themselves and enjoy life,” Chaplin said.
“Many still aren’t 100 percent back to going out and doing things they used to enjoy, but they can come buy a car, and it fills the void. We’re hearing many people say they’re just enjoying driving around, getting out of the house and gaining some mental clarity by doing so.”
While there generally is at least one of everything in Luxury’s inventory on the lot to drive, finding the exact color or amenity package you want might be challenging.
There’s a definite benefit here, too, though: You can work with Luxury’s experts to custom-build your own 2021 model.
“If you’ve never done it, it’s really fun,” Chaplin said “We can walk you through it, and the availability to order is now for 2021s in BMW, Cadillac and Mercedes.”
You can start at home, too, at luxuryautomallofsiouxfalls.com.
“We’re providing more information online than we’ve ever provided,” Chaplin said. “You can do all the research step-by-step online and then call us and see if we’re able to order it, and as long as we have the allocation, we’ll fill it for you.”
The 2021 models are available to look at or will be soon, he said, including the brand-new Cadillac Escalade.
“It’s brand new from the ground up,” Chaplin said. “We’ll have one in Sioux Falls Sept. 26, so plan on stopping by the dealership then. It’s a touring model, so you’ll be able to see it in the store. You can’t drive it, but you can get in it.”
Custom-ordered vehicles generally will arrive about two months after the order is placed, so today’s customers likely will drive away with their new ride in September or October.
“It’s like ordering your Christmas gift in advance: You know what you’re going to get, you know it’s what you want, and that excitement builds,” Chaplin said.
Feel like you won’t get a competitive price if your new vehicle isn’t sitting on the lot? Not true.
“We offer our best price regardless,” Chaplin said. “You’re not going to pay window sticker if you custom order your vehicle. You’ll get all the incentives and a great value, but you’re going to get it exactly the way you want it.”
And wait until you see the financing options.
“The car business follows the same trend as other industries that offer financing, so money is cheap to borrow right now,” Chaplin said. “The highest rate I’ve seen lately is 2.9 percent. And we’re seeing offers for zero percent spread out up to 72 months. That’s a no-brainer if you’re in the market.”
Limited supply likely will be the story in the auto industry for the foreseeable future, Chaplin said.
“This will go on for a while. The factory isn’t going to produce extra vehicles to fill the lot,” he said. “It’s probably going to go on through the end of the year.”
The factories that supply Luxury Auto Mall are in the U.S., so more vehicles are coming, Chaplin added.
“The supply is coming, but given the demand we’re seeing, the vehicles we do get are going to continue selling fast. If you’re in the market – and especially if you’ve got a nice trade – we definitely encourage you to come see us soon.”
The auto market is doing some very interesting things this summer. Here’s what you need to know before buying or trading your vehicle.