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Dude, where did all the dealerships go?

653 messages,  Last post on Nov 14, 2009 at 6:23 PM

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What is this discussion about? Car Buying, Automotive News, Legislation


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#108 of 653
Cars Leaving Lots Without Drivers by lemko
Dec 29, 2008 (5:29 pm)
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Sad Saga of Scott Eckenhoff
#109 of 653
Re: Cars Leaving Lots Without Drivers [lemko] by nippononly
Dec 29, 2008 (6:10 pm)
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Replying to: lemko (Dec 29, 2008 5:29 pm)

I know our little thread here and my casual observations on the news are no scientific survey, but it seems like this whole credit crunch is hitting GM dealers much harder than it is hitting Ford dealers, and I can begin to believe the speculation in the article you linked that GM is using GMAC to target dealers it wants closed, to pressure them into a position where they can no longer sell cars.
 
GM is targeting a 25% reduction in the number of its dealers by 2012, but that will still be more than double the number of Toyota dealers, just to compare an automaker of comparable annual sales volume. I could EASILY see these GM dealerships being repo'ed and closed up as part of a behind-the-scenes plan at GM.
 
PS this really sucks: Eckenhoff, who leases the land here, said he was working on a deal to save his franchise. Meanwhile, he hopes GM agrees to buy back from GMAC his new cars for the same price he paid. He also hopes GMAC gets good prices at auction for his used cars.
 
If GMAC gets less than what Eckenhoff paid, he will owe GMAC hundreds of thousands of dollars - if not more
 
Poor guy, it's like when your car is repo'ed, only multiplied by 50 or 100!
#110 of 653
Re: Cars Leaving Lots Without Drivers [lemko] by gagrice
Dec 29, 2008 (6:12 pm)
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Replying to: lemko (Dec 29, 2008 5:29 pm)

I think from the article it paints a picture of what GM is trying to accomplish. I still do not understand how they ended up with too many dealerships. It seems the more exposure the better. So now GMAC has truckloads of Caddies. What do they do with them? You know if they wholesale them right now it will be lucky to get 50 cents on the dollar.
#111 of 653
Re: Cars Leaving Lots Without Drivers [gagrice] by nippononly
Dec 29, 2008 (6:14 pm)
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Replying to: gagrice (Dec 29, 2008 6:12 pm)

So now GMAC has truckloads of Caddies. What do they do with them? You know if they wholesale them right now it will be lucky to get 50 cents on the dollar.
 
Won't they just sell them to a different dealer? They can still be sold as new, just like any car fresh from the factory.
#112 of 653
Re: Cars Leaving Lots Without Drivers [nippononly] by gagrice
Dec 29, 2008 (7:20 pm)
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Replying to: nippononly (Dec 29, 2008 6:14 pm)

I'm sure they can. If they can find a dealer that wants to take them at the current GM price. Everyone is looking for a deal. That would include the dealers.
#113 of 653
Re: Cars Leaving Lots Without Drivers [gagrice] by fezo
Dec 29, 2008 (7:23 pm)
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Replying to: gagrice (Dec 29, 2008 7:20 pm)

Speaking of GMAC, now we own it.
#114 of 653
Re: Cars Leaving Lots Without Drivers [gagrice] by bumpy
Dec 29, 2008 (7:45 pm)
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Replying to: gagrice (Dec 29, 2008 6:12 pm)

. I still do not understand how they ended up with too many dealerships. It seems the more exposure the better.
 
Well, that worked in the old days when the margins were a lot better for each dealer, and the roads were crappier so driving 25 miles to get a better deal wasn't a realistic option. These days the margins are a lot lower so dealers have to move more product to compensate, which drives them into ruinous competition with each other.
#115 of 653
I think next year by boaz47
Dec 29, 2008 (8:10 pm)
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We should see whole lots full of highly discounted cars. The 2008s that didn't sell can't be sold for what they will have to discount the 2009s and by 2010 those 2008s and even the 2009s should discounted way down.
#116 of 653
Re: I think next year [boaz47] by gagrice
Dec 29, 2008 (8:57 pm)
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Replying to: boaz47 (Dec 29, 2008 8:10 pm)

I just got an email from our Mercedes dealer. They have 50 cars that no reasonable offer will be refused on. They are showing 2009 E class MSRP $55k for $44k. They have 6 2009 ML 320 blutech diesels showing. I think I will go have a look. I could be tempted if they are really desperate to sell. I have to go test drive the BMW X5 diesel first as they may be my first choice. It may be the time to deal or maybe the end of January will be even more brutal.
#117 of 653
Re: I think next year [gagrice] by nippononly
Dec 29, 2008 (10:45 pm)
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Replying to: gagrice (Dec 29, 2008 8:57 pm)

They are going to offer you next to nothing in trade for the Sequoia though - it is less than 2 years old, still in its steepest depreciation period, and used cars in general have dropped a lot in value in the last 6 months. I assume you are thinking of trading it, right?
 
When Mercedes dealers get this desperate, how bad must it be for the Ford and GM dealers?

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