| The Fayetteville Observer
The back lot at Powers-Swain Chevrolet on Bragg Boulevard is normally full of inventory while the front lot tends to be stocked with about 100 vehicles for guests to peruse.
Not on Monday, though.
Just as it has across the nation, the coronavirus has disrupted the business at this Fayetteville car dealership.
General sales manager Gary Brown said there may be one red burgundy truck parked on the back lot and less than 40 vehicles sitting out front.
“There’s nothing back there,” he said of the back lot. “I’ve got less than 40 new vehicles for sale right now; I normally keep 200. We had a strike at the factory last year for about two months, and they closed. When the coronavirus hit, they closed again. They’ve been so far behind they haven’t been able to catch up.”
According to published accounts, auto sales in March and April fell dramatically nationwide. Though sales saw a significant recovery in the ensuing months, they have remained below pre-virus forecasts for some dealerships.
Supply chain disruptions and plant closures have led to shortages of some vehicles sold in America. In some cases, those shortages have been offset by reductions in demand, as consumers stay out of showrooms and off the lots. Stay-at-home mandates and recommendations made it more challenging to sell new cars in most areas of the country.
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Other than that lack of inventory and having to wear a mask and maintain social distancing, Brown said, the year has “been OK. We haven’t suffered that much in sales until this month. We have about 65 (vehicles) in transit. We just need them to get here.
“We were down probably 10%. Ten to 15%,” he said. “The last three months have been really good. This is the first month we’re down because of inventory.”
Powers-Swain Chevrolet will deliver vehicles to their new owners for free within a 100-mile radius, and Brown said staff has transported models to, among others, Wilmington, Troy and Charleston, South Carolina.
“We don’t mind doing that,” he said. “Some people are afraid to get out. Period.”
Because of the shortage, some of what Brown called the nice, late-model used vehicles have gone up in price. In some cases, he noted, the prices on those used vehicles have increased by $4,000 or $5,000.
” ‘Cause people need them,” he said, “and they’re willing to pay it. It’s the same thing with houses right now. There’s no inventory right now.”
The list prices on Chevrolet trucks and SUVs have been affected during the coronavirus era: Their cost has gone up. Yet, Brown said, “all the big stuff” — including Chevrolet Silverado 1500 trucks and Chevy SUVs — is selling.
“If you’re trading one in, it’s great for you,” he said. “A nice vehicle — it’s worth a lot more money now. Trucks are worth a lot more money.”
The Carolinas Independent Automobile Dealers Association counts 1,400 members. John Brown is the executive director.
Dealerships throughout North and South Carolina and the nation at-large have been impacted by COVID, he said.
John Brown said car dealerships that operate in some counties in the Carolinas had to shut down because they were not listed as essential businesses. When the coronavirus began along the March time frame, dealers were facing a reduction in foot and driving traffic.
Perhaps, surprisingly, John Brown said some dealerships in the Carolinas — roughly 10% to 15% — experienced an increase in sales year to year.
Currently, he added, about 30% of the dealers in his trade association “are operating at or above levels from last year and about 70% less than that number from last year.
“Cars are wholesaling and retailing at higher-than-expected prices at this time,” said John Brown. “Demand has gone up. It’s driven by the demand during COVID — there’s a healthy increase for those who no longer want to share a ride or take public transportation. They feel their best safety is to have their own vehicle.”
Tim Roussell runs Bryan Honda on Raeford Road, but the dealership’s general manager was home with his wife Monday, both recovering from COVID-19.
The biggest issues at Bryan Honda have included a lack of inventory because manufacturing plants were shut down, a shortage of vehicle parts, and a thinner dealership staff. That last issue is due to leaves of absence being taken during the coronavirus (whether it’s a fear from underlying health conditions or just staying home to take care of children).
“It has been a real challenge,” Roussell said. “Probably because it has been more than anybody expected because it has lasted so long.”
Sales have been down about 22% from the prior year, he said. “I think they rectified the situation, and it looks like we’re running at normal capacity.”
And while the inventory is on hand, Roussell said, the foot traffic has not returned to pre-coronavirus numbers.
“I did not see an influx in business like I thought I would see,” he said. “I think there’s a pent-up demand to buy. Those who normally would buy have not because of the coronavirus.”
One of the biggest things, he said, is that the dealership’s body shop business has been down about 50% because people just weren’t driving over the initial months of the virus.
He has not seen an uptick in online sales.
American Honda was offering a payment deferral plan for buyers during COVID, but that offer ended in October.
Sales also were hurt because Bryan Honda has always been more of a night store, Roussell said. So the city curfew issued for Fayetteville during the early parts of the coronavirus had an impact on those sales during the evening hours.
Paula Lindler serves as marketing director for LaFayette Ford on Raeford Road.
Overall, she said, fewer vehicles have sold and profits dipped because the sales department closed for two weeks during the pandemic.
“The service department remained open with a very small staff,” Lindler said. “Other than that, I can’t say that it has hurt our business. And I think it’s because it’s (Ford LaFayette) essential.”
The Ford F-150 pickup has been the best seller over this time, but used car sales surged over the summer months.
Inventory definitely slowed, she said, but the dealership was fortunate to have a good amount of vehicles on the lot entering the shutdown. “We were still able to maintain decent inventory levels,” Lindler said.
“We were still requiring people to come in and sign paperwork. But the dealership has gone to great lengths to make it safe for customers and for employees.”
Staff writer Michael Futch can be reached at [email protected] or 910-486-3529.
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