Along with vacations, beach days and barbeques, summer is now synonymous with high gas prices. In summer of 2008, both auto & dealership industries were nailed by spike in fuel prices; this time around, high prices at the pump have become an unlikely ally to dealerships.
According to NDRC, In July 2008, gas prices spiked to an average of 4.11 nationwide. The economy was taking a downhill turn and industry giants like General Motors, Ford Motor Co, and Chrysler group LLC relied heavily on SUV’s and pickup trucks to bolster sales- it was a recipe for disaster for dealerships with consumers looking to save money, not invest more in gas guzzling machines.
Now however, in a twist of irony, high gas prices are actually helping boost sales for dealerships. Auto sales have outpaced estimates, rising 16% in February, the industry’s best showing in years. Gas-heavy cars are no longer the center of the automotive industry, as cars that sip fuel rather than guzzle it are now readily available to consumers. Instead of staying local and avoiding the gas pump, consumers are cashing in their old cars and larger SUV’s for more gas efficient vehicles, a change that bodes well for the auto industry.
Currently, the average gas price in Maryland is 3.879. And it’s only March. Gas prices are predicted to break records this summer once again. Yet today it’s a vastly different story from that 2008 summer. Models such as the Honda Civic, MINI Cooper, Toyota Corolla & Prius, Ford Focus, Chevy Malibu Hybrid, and Nissan Versa rank among U.S. motorists’ top fuel-efficient choices. The unlikely ally could be a great booster for automotive dealerships – as consumers are looking daily to save more at the pump, trading in old cars for newer more fuel efficient vehicles will quickly become a more cost-efficient way to travel in this summer.
There are unique risks and exposures in everything you offer – all requiring insurance protection specifically designed for dealerships. At Dealer Protection (DPG), that’s what we do. We are in the business of protecting your business, providing you with a broad array of Dealership Coverages.
At DPG, we work with a number of top-rated insurance companies that specialize in insurance for dealerships. Our staff’s experience and knowledge in this sector is unprecedented. Give us a call at 949.208.8550