Smart buyers back out leaving the cars ‘orphaned’ in US dealerships
Aren’t people always acting like a herd? Last year, when gas price were up through the roof, Smart dealerships registered a very high demand for the small German car. Now, when gas price are back to a more normal level, everyone is dumping their new Smart. According to an article from USA Today, Smart dealers are facing with increasing unsold car lots, caused by customers who placed their orders and then backed out. And the $99 required deposit (which is also refundable) is making this decision really easy to take. Smart confirmed but said they’re not worried about this situation yet “”Are a few more people canceling (compared to) last year? Yes. But certainly we’re not seeing a huge falloff” said Smart spokesman Ken Kettenbeil.
According to Smart, the company has around 30,000 prospective buyers who paid the $99 reservation fee but have not taken delivery and from these, about 35% back out (about 30% in November). However, we think Smart should worry, because Autodata reports that in February Smart sold 1,415 units, almost half of how much it was selling last year.
Source: USA Today
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Lets put this into perspective…. There is a storage lot outside atlanta georgia that has 10,000 Honda minivans parked there because dealers dont what them.
Probably that’s going to happen with a lot of economical cars.