Is it time for auto dealerships to re-evaluate their inventory value?
As auto values continue to increase and weather-related events occur more frequently and severe, now may be a good time for auto dealerships to re-evaluate the value of their inventory.
Increase in Auto Availability and Value
Cox Automotive reported as of January 23, 2023, dealerships in the United States had 1.73 million new cars available. This is 62% higher than a year ago. In addition, the average new car in the U.S. sold for $47,743 in January 2023 which is 6% higher than January 2021.
Increase in Hailstorm Activity
According to NOAA's Severe Storms Database, there 4,437 major hailstorms in the U.S. in 2022. This is a 17.9% increase from 2021. Although peak hail activity occurs between May and August, many states have already seen some form of hail activity in 2023.
With hail season approaching, protect your dealership from the potential of co-insurance penalties by reviewing their inventory values.
With broad coverage forms in the dealer insurance marketplace Cream City Insurance is your one-stop shop for protecting your Dealership.
TARGET CLASSES • Franchised New & Used Car Dealerships • Franchised New & Used Motorcycle Dealerships • Franchised New Truck Dealerships • Large Non-Franchised Dealers • ATV Dealers • RV Dealers