SIOUX CITY — Ideal Wheels on Sixth Street’s “Auto Row” in Sioux City has been around for 33 years. It used to be that the business would acquire much of its inventory from the tri-state area. Right now though, Ideal Wheels is having to cast a wider net to keep cars on the lot.
Doug Johnson has worked for the dealership for 23 years, with the past three spent as co-owner.
“Sales are good. Inventory is obviously is tough to get. We’re having to buy our inventory farther away which has led to some transportation issues,” Johnson said. According to him, that means traveling to Michigan, Texas and Florida which makes getting cars back to Sioux City more difficult. Johnson said even when Ideal Wheels can purchase vehicles from larger cities such as Omaha or Kansas City, it can take longer than it once did to actually get the cars on the lot.
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A lot of those shifts are owed to the COVID-19 pandemic which has upended almost every business sector in the country in some form or fashion. A Feb. 3 article from CNBC found that shortages of computer chips, which are needed in newer models, have caused production to fall behind and put the onus on the used market to satisfy more of consumer demand.
“Older used cars (4 to 7 years old) average $31,046, up almost 50% from $20,757 before the pandemic,” Sarah O’Brien reported in the story.
Jason McClure-Greer, who’s worked at Knoepfler Chevrolet in Sioux City as sales manager for the past three years, said that right now about 70% of the dealership’s total sales are used cars which is more than in the past.
Jared McNett
According to Jason McClure-Greer, who’s worked at Knoepfler Chevrolet in Sioux City as sales manager for the past three years, about 70% of the 100-year-old business’ current sales are used vehicles which he says is higher than in the past.
“Late models are probably the most commonly searched vehicle and I think that might have something to do with the lack of availability of the new cars,” McClure-Greer said.
To acquire those used models, McClure-Greer said representatives from Knoepfler are attending auctions every week, buying vehicles off the street and advertising constantly to keep up a “well-rounded, pre-owned inventory.” Presently, he shared that the business’ inventory at 100 Jackson St. includes about 20 to 25 new units and close to 100 used vehicles on the ground.
In certain instances, McClure-Greer said it can now take as long as three-to-five months for new car and truck orders. Before the pandemic, the range would be about one-to-three months. “We had a pause in our Colorado plant so it’s a little slower coming back,” he said.
Founded in 1922 as Ryal Miller-Kidder Chevrolet Co., Knoepfler Chevrolet is thought to be Sioux City’s oldest continuous auto dealership.
At Ideal Wheels, Johnson said the inventory number hovers around the low 80s.
“Probably 80% of our business is crossovers and SUVs and the other 20% is trucks,” he said.
Johnson noted that the sales prices of those vehicles are up but so too are trade-in values at the store. “We price our cars very aggressive (to compete) and prices are up,” Johnson said. According to him, it’s one of the strangest times to be in the car sales business.
“As the new car dealers have struggled for new inventory, it’s forced those dealers to be more a part of the used inventory than they were before,” he said.
When exactly those new inventory issues will cease, McClure-Greer said he’s heard word it’ll happen before 2022 is over.
“We kind of just follow what our manufacturers are telling us…They’re letting us know that things will be back to normal this year,” McClure-Greer said. “I think the toughest part was the amount of actual new car inventory that we had on the ground…Obviously adjustments were made (and) adjustments are still being made.”
Jared McNett is an online editor and reporter for the Sioux City Journal. You can reach him at 712-293-4234 and follow him on Twitter @TwoHeadedBoy98.
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