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Automotive News & Views Dude, where did all the dealerships go?
654 messages, Last post on Nov 23, 2009 at 7:56 PM
You are in the Automotive News & Views Forum. Your Hosts are steve_ & claires
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Replying to: steve_ (Apr 07, 2009 9:27 pm) Only if you buy retail.  The used car market is hot, as people look for ways to economize in the downturn. Demand is building behind that; one, because Americans are consumers and can't go all that long without something new, and two, because you don't replenish the supply of decent used cars without selling some new ones. So consolidation and culling now will only lead to better profits then, meaning the strong stand to clean up big time on the upside of all this. One of the best purchasing/customer service/product experiences I ever had was in '93 on a Saturn SL2. The process was simple, the people well trained, polite and knowledgeable, the product (IMO) very competitive, and the service after the sale in some ways exceeded that which I would later experience at a Lexus stand (the reported paragon of service standards). The car performed flawlessly for me, was capable, comfortable and fun to drive. I found significant value in the whole shebang, from soup to nuts. Whatever product mistakes GM made with the line over the years, the fact remains that the public is used to doing car business a certain way, and even when presented with what they may say they want, they apparently don't. I personally would welcome a "price you see is the price you pay" scenario, but how do you verify value for cost? And what happens if the product doesn't move and you can wait for the sale? I don't see it changing anytime soon...
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Replying to: plan_man (Apr 08, 2009 9:09 am) Nah, DeBeers promotes them as "heirlooms" because they know you'll never be able to sell them for anything like what you paid for them, wholesale or retail. I think the gorilla in the back room with the Saturn model is that people frequently trade cars in and how do you take that haggle out of that part of the deal? Send them to CarMax for a price first?
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Replying to: steve_ (Apr 08, 2009 9:27 am) You're not talking about diamonds, Steve, you're talking about pianos!  Valid point on trading. My Saturn puchase involved no trade; I returned a leased vehicle to Honda American and went straight to the purchase. Matter of fact, I think you're much more on the scent than any of us with that. I think more people fail to negotiate their own sale (the trade) effectively than anything else in the process. And I think those people probably feel more denuded by that part of the transaction than by the new product purchase. Failure to separate the two transactions may be part of it. Failure to be able to sell their own product (negotiate the trade of their old car) may be another. I wonder how many people neglect to research the value of their trade honestly and without emotion, prepare the product (detail it, remove the gum wrappers, etc.), and present the product? Good call...
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Replying to: plan_man (Apr 08, 2009 11:07 am) That's the nice thing about driving them forever though - I could spend all day cleaning up my minivan and it's still going to be worth a grand. Maybe. No way is a wax and vacuum going to make much difference on the trade. Craigslisting it, well, looking clean would help more there I think. Diamonds vs pianos - at least the rock is easier to haul to the pawn shop and doesn't require tuning. Miami Car Dealer Is Upbeat, but Admits Something Has Changed "All around Mr. Sifford car dealerships are closing. Five have disappeared or gone up for sale within a 10-minute drive of his showroom here; nationwide, more than 1,000 shut down in 2008." (New York Times) Oh, speaking of Saturn: All KC area Saturn dealers closing (The Kansas City Star)
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Replying to: steve_ (Apr 08, 2009 12:52 pm) The real key is some of us, unlike my friend Nippon, do not feel we would lose that much service if we lost a few more dealers. Maybe when the smoke clears what ever is left will be an improvement over the system we have today. Service is a whole different kettle of fish than car sales. The very fact that car sales have so much wiggle room indicates they are over priced in the first place.
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"In the first quarter this year, 271 auto dealers in the U.S. went out of business, according to the National Automobile Dealers Association." Economy Takes A Toll on Auto Dealers Ranks (Auto Observer) 
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Replying to: boaz47 (Apr 08, 2009 8:44 pm) I wouldn't count on it. Whenever a recession hits,it affects the weakest players first. the strong survive and are in position to get stronger duriing the recovery. A strong dealer is the one which manages its costs best AND maximizes its profits from Sales,Service and Parts. What the consumer will find this time is fewer dealers,but fewer deals as well. LESS competition has a tendency to raise prices,not lower them. |
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Saturn Dealers Lose Hope, Close Stores (AutoObserver) 
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Developer Dan Schmidt has placed six of his auto dealerships into receivership amid a dispute with KeyBank .....The dispute with KeyBank centers on the Nashville and Denver dealerships. Schmidt in January voluntarily placed his five Nashville-area dealerships and a Denver-area dealership into receivership at Franklin County Common Pleas Court. All were financed by KeyBank, which sued Schmidt in the same court on Feb. 18 to foreclose on the properties, arguing he had defaulted on nearly $30 million in loans. Franklin County Common Pleas Judge John P. Bessey granted immediate foreclosure the same day. “This is all collateral damage from the credit crisis,” Schmidt said. http://columbus.bizjournals.com/columbus/stories/2009/03/09/story3.html
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Replying to: nippononly (Apr 14, 2009 7:45 am) For the longest time, it was the only Infiniti dealership in metro Denver. Now there is a second, on the other side of town. I'll have to see if there is anything about this in the local papers. |
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