Automotive group executive expects August, September to be toughest months for inventory

Gettel Automotive Group Chief Operating Officer Bob Bisplinghoff, like many of his peers, says inventory is low at the Bradenton-based company, one of the largest auto dealerships in the region. Gettel, with $1 billion in gross revenue in 2019, has 17 dealerships spread through Gainesville, Ocala, Bradenton, Sarasota and Punta Gorda. It sells brands from Acura and BMW to Kia and Porsche, in addition to Buick, Chevrolet and GMC.  

“All of our stores across the board are very light in new cars,” he says. “It’s the biggest risk we have in the coming months.”

Some manufacturers have offered estimates for when production could be back to normal. For most, it’s late third quarter or early fourth quarter. Shortages vary by brand, he says, with Hyundai having the best supply because it didn’t shut down as quickly as others.

One benefit? A shorter sales cycle. So if customers see a vehicle they’re interested in, they’re more apt to purchase it, says Bisplinghoff. They realize if they don’t take it, another customer right behind them will buy it.

Looking ahead, Bisplinghoff expects inventory issues to continue through the summer. “It’s tight now, so it’s going to be tighter,” he says. “Probably August and September are going to be the toughest months. Then will start trickling in after that.”

‘The customers are going through it just like we are, and you have to operate with compassion.’ — Bob Bisplinghoff, Gettel Automotive Group

New car shortages have impacted used cars, too. Demand and values have spiked for used cars over last 60 days, he says, with used inventories also becoming tight. Rental car companies are sometimes a source of inventory, but those are getting harder to acquire. (Lee County-based rental car company Hertz, in bankruptcy,  has publicly disclosed plans to sell thousands of used cars.) The company also buys used cars from auctions, Facebook advertisements and service customers. “It’s definitely not as easy as it used to be,” Bisplinghoff says .

Another pandemic advantage? Amid the pandemic, customers are turning away from Uber or other ride-sharing services. The company is also seeing customers come in who are preparing to take a road trip instead of flying. “For us, it’s a good thing,” Bisplinghoff says. “There’s a demand for the products we sell.”

In an era of social distancing, Gettel is offering several contactless options for customers. People can shop online, sign documents electronically and have vehicles delivered to them. “We’ve been able to get that implemented over the last 60 days,” says Bisplinghoff. “You can purchase 100% at home.”

The number of customers buying cars from home is still a small percentage, but it’s a growing segment. And the ease of contactless options might be attractive long after the pandemic passes. “I think customers are going to embrace it,” says Bisplinghoff. “I think it will be more prevalent as we move forward.”

Throughout the fluctuations of 2020, one key for Gettel has been staying disciplined and focused on goals. What’s also been important? Understanding. Bisplinghoff says, “The customers are going through it just like we are, and you have to operate with compassion. Our No. 1 goal is to meet the needs of the customer.”