Skip to main content
Sister Publication Links
  • Automotive News
  • Automotive News Europe
  • Automotive News China
  • Automobilwoche
Subscribe
  • Subscribe
  • login
  • HOME
  • News
    • News by Brand
    • Auto Shows
    • Canadians Abroad
    • Photo Galleries
    • Automakers
    • Suppliers
    • Retail
    • Dealer Best Practices
    • Government Relations
    • Trade and Tariffs
    • Technology
    • Labour
    • Aston Martin
    • BMW
      • Mini
      • Rolls Royce
    • Daimler
      • Mercedes Benz
      • Smart
    • Ferrari
    • Ford
      • Lincoln
    • General Motors
      • Buick
      • Cadillac
      • Chevrolet
      • GMC
    • Honda
      • Acura
    • Hyundai
      • Kia
    • Mazda
    • Mitsubishi
    • Nissan
      • Infiniti
    • Stellantis
      • Alfa Romeo
      • Chrysler
      • Dodge
      • Fiat Chrysler
      • Jeep
      • Fiat
      • Lancia
      • Maserati
      • Ram
    • Subaru
    • Tata
      • Jaguar
      • Land Rover
    • Tesla
    • Toyota
      • Lexus
    • Volkswagen
      • Audi
      • Bentley
      • Bugatti
      • Lamborghini
      • Porsche
    • Volvo
    • VinFast
    • Toronto Auto Show
  • Opinion
    • Blogs
  • Video
  • Podcasts
  • EVENTS & AWARDS
    • 2022 Auto News Canada All-Stars
    • 2022 Canadians To Watch
    • 2022 Diversity Champions
    • Best Dealerships To Work For
    • Canada Congress
    • Retail Forum: Dealer Discussions
    • Leading Women Roundtables
    • Embracing Diversity Roundtable
    • EVs Decoded
  • Jobs & Classifieds
  • +MORE
    • IN THE DRIVER'S SEAT
    • NEWSLETTERS
    • SUBSCRIBE
    • CLASSIFIEDS
    • PEOPLE ON THE MOVE
    • COMPANIES ON THE MOVE
    • WEBINARS
    • ADVERTISE WITH US
    • CONTACT US
    • DIGITAL EDITION
    • PUBLISHING PARTNERS
MENU
Breadcrumb
  1. Home
  2. Opinion
August 04, 2022 06:47 AM

Why ordering a new car isn't really like ordering items from Apple or Amazon

If vehicle ordering is to be the norm after the supply-chain issues are solved, then the industry must slash waiting times for customers

New Jeff Melnychuk
Jeff Melnychuk
Editor-in-Chief of Automotive News Canada
  • Tweet
  • Share
  • Share
  • Email
  • More
    Print
    Gus Revenberg Chevrolet-Buick-GMC
    Kegun Morkin

    If demand is high enough for a product, then people will line up to buy it. That’s where the auto industry is right now. People need vehicles and the supply is unable to meet that need.

    This demand is perpetuated not necessarily by buyers, but by the car companies. It’s not that automakers don’t want the business (more volume), it’s just that supply-chain issues are hampering the ability to build enough vehicles.

    For dealers, the lower volume has a silver lining. There’s less inventory to carry, and vehicles that are ordered are reportedly selling at full sticker price. Less work for more money is a good thing, and dealers likely have a clearer picture of sales volumes because customers are queued up in advance.

    Why can’t this be the business model for all automakers, then? Brands such as Tesla and Apple can only be purchased this way, after all.

    It’s a valid question. Building to meet demand has obvious advantages but also some pitfalls. The question is whether those pitfalls — making customers wait, for one — are worth it.

    The COVID-19 pandemic has conditioned people to wait longer than normal to receive products and services. That doesn’t mean people like it. In fact in the adjacent column, Digital and Mobile Editor Greg Layson echoes the sentiment of many consumers when he says he hates it.

    Point being that once the supply chains are sorted out and the capability to produce more vehicles returns, the auto industry will be hard-pressed to keep customers waiting. The competitive nature of the industry — car companies cranking up factories to battle for market share — might even make that impossible.

    For example, will customers be willing to wait a year for a Cadillac Lyriq if a suitable competitor is available sooner? No disrespect to the Cadillac brand, but at the end of a four-year lease for their current vehicle, what customer would go without another vehicle for a year? No one.

    Basically, unless the entire industry bands together to limit inventory levels — think of OPEC’s grip on oil production and how that falls apart from time to time — there will be no way to keep customers on waiting lists, unless it’s for a very specific high-interest vehicle.

    That’s not to say there aren’t some best practices that could or should be adopted from the current situation. The reason customers were buying off the lot in the first place and not ordering is because — spoiler alert — the order process takes too long. With a stocked lot of cars from which to choose, close is generally good enough.

    Over the past year or more, customers have been forced into the order process, but if automakers and dealers want to keep that going — the business benefits are probably worth the attempt — then they have to do one thing: build to order a lot faster (to keep annoyed customers such as our Digital and Mobile Editor Greg Layson happy).

    Every dealer should be pushing every automaker to optimize if not revolutionize this process.

    Why? If you told me I could have the exact vehicle I wanted within two or three weeks of ordering, then guess what, I’m not even thinking of buying off the lot. Everyone wins.

    What some people might miss when drawing comparisons to Apple is that the exact iPad or MacBook needed is probably not in stock at the local store, but is only a week or two away with a custom order done from home. Or at least it was before the pandemic. People are not angrily waiting as much as they are willingly waiting.

    The order process for a car cannot take months to complete. Cut the wait. That’s a lesson car companies can adopt when their full capacity returns.

    RECOMMENDED FOR YOU
    When there are ZEV waiting lists, a sales mandate is just pointless
    Recommended for You
    When there are ZEV waiting lists, a sales mandate is just pointless
    When there are ZEV waiting lists, a sales mandate is just pointless
    Lana Payne Wins Unifor Presidency
    2023 contract talks with Detroit 3, Unifor to address a once-in-a-century transformation
    2023 Canadian International AutoShow EV test track
    EVs will breathe new life into auto shows, without the fumes
    Andy Wadeson
    Sponsored Content: Expert Insights: The Implications of Rising Interest Rates
    Digital Edition
    March 2023 Cover
    View latest issue
    See our archive
    Sign up for free newsletters
    EMAIL ADDRESS

    Please enter a valid email address.

    Please enter your email address.

    Please verify captcha.

    Please select at least one newsletter to subscribe.

    You can unsubscribe at any time through links in these emails. For more information, see our Privacy Policy.

    Get Free Newsletters

    Sign up today for our Weekly Newsletter, Daily Newsletter and Breaking News Alerts. We'll deliver the news you need to know straight to your inbox.

    You can unsubscribe at any time through links in these emails. For more information, see our Privacy Policy.

    Subscribe Now

    An Automotive News Canada subscription includes 12 monthly issues – delivered in print to your doorstep, and digitally to your inbox – plus unlimited, 24/7 access to our website.

    Subscribe Now
    Connect With Us
    • Facebook
    • Twitter
    • Instagram

    Our Mission

    The Automotive News Canada mission is to be the primary source of industry news, data and understanding for the industry's decision-makers interested in Canada.

    Contact Us

    1155 Gratiot Ave
    Detroit MI 48207

    1-877-812-1257

    Email Us

    ISSN 2475-5001 (print)
    ISSN 2475-501X (online)

    Resources
    • About us
    • Contact Us
    • Digital Edition Archive
    • Advertise with Us
    • Reprints
    • Ad Choices Ad Choices
    • Sitemap
    Legal
    • Terms and Conditions
    • Privacy Policy
    • Privacy Request
    Automotive News Canada
    Copyright © 1996-2023. Crain Communications, Inc. All Rights Reserved.
    • HOME
    • News
      • News by Brand
        • Aston Martin
        • BMW
          • Mini
          • Rolls Royce
        • Daimler
          • Mercedes Benz
          • Smart
        • Ferrari
        • Ford
          • Lincoln
        • General Motors
          • Buick
          • Cadillac
          • Chevrolet
          • GMC
        • Honda
          • Acura
        • Hyundai
          • Kia
        • Mazda
        • Mitsubishi
        • Nissan
          • Infiniti
        • Stellantis
          • Alfa Romeo
          • Chrysler
          • Dodge
          • Fiat Chrysler
          • Jeep
          • Fiat
          • Lancia
          • Maserati
          • Ram
        • Subaru
        • Tata
          • Jaguar
          • Land Rover
        • Tesla
        • Toyota
          • Lexus
        • Volkswagen
          • Audi
          • Bentley
          • Bugatti
          • Lamborghini
          • Porsche
        • Volvo
        • VinFast
      • Auto Shows
        • Toronto Auto Show
      • Canadians Abroad
      • Photo Galleries
      • Automakers
      • Suppliers
      • Retail
      • Dealer Best Practices
      • Government Relations
      • Trade and Tariffs
      • Technology
      • Labour
    • Opinion
      • Blogs
    • Video
    • Podcasts
    • EVENTS & AWARDS
      • 2022 Auto News Canada All-Stars
      • 2022 Canadians To Watch
      • 2022 Diversity Champions
      • Best Dealerships To Work For
      • Canada Congress
      • Retail Forum: Dealer Discussions
      • Leading Women Roundtables
      • Embracing Diversity Roundtable
      • EVs Decoded
    • Jobs & Classifieds
    • +MORE
      • IN THE DRIVER'S SEAT
      • NEWSLETTERS
      • SUBSCRIBE
      • CLASSIFIEDS
      • PEOPLE ON THE MOVE
      • COMPANIES ON THE MOVE
      • WEBINARS
      • ADVERTISE WITH US
      • CONTACT US
      • DIGITAL EDITION
      • PUBLISHING PARTNERS