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Industry > Trend

Local car distributors are running out of storage

Which makes this the perfect time to buy a vehicle

Local vehicle distributors are reportedly scrambling to look for more storage locations. PHOTO BY VERNON B. SARNE

No, this isn’t some sponsored article designed to entice you to avail of a vehicle sales promo. Allow me to explain why these days are the perfect time to purchase a brand-new car.

At a media event I attended very recently, a car company executive told me that many players in the local auto industry were facing a common concern: They’re running out of places in which to keep their inventories. Which means that the sales slump we were telling you about is resulting in an oversupply of vehicles and seriously screwing the supply chain of distributors.

“The stockyards in Laguna are now very much crowded,” the executive shared.

These new units are now sitting at the open parking lot near Toyota Global City in BGC. PHOTO BY VERNON B. SARNE

So, just what exactly does this mean for the customers?

Lots of attractive sales offers, apparently. This was pointed out to me by the owner of a dealership.

“Because the market suddenly slowed down, most distributors now have big inventories,” the dealer principal said. “And so do their dealers. Hence, they’re aggressively selling and giving huge discounts. Because their storage areas are already congested, they need to dispose of units by whatever means necessary. So now is a good time to buy a car kasi sobra ang discounting.”

These discounts, it should be noted, will not last for very long.

“Soon, the distributors will reduce or adjust their orders for imported vehicles,” the dealer owner continued. “And so dealers will have smaller inventories, so pricing will go back to normal. Having said that, it takes three to four months to adjust inventories of imported units. Distributors need to discuss the situation with their regional offices and suppliers—they’re part of a global supply chain, after all. It’s not an easy job.”

Interesting. Check with your salesperson if the car you’re eyeing now carries a juicy discount. You’ve been adequately notified.



Vernon B. Sarne

Vernon is the founder and editor-in-chief of VISOR. He has been an automotive journalist for 23 years. He became one by serendipity, walking into the office of a small publishing company and applying for a position he had no idea was for a local car magazine. The rest, as they say, is rock and roll.



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