Local former Chrysler, GM dealers look to sell used cars - San Antonio Business Journal:

guronelogoh.blogspot.com
Tony Wilkerson, executive director of the , said his organization has begun to lend assistance to dealerw lost in thebankruptcy shuffle. “Oufr national organization has already sent letters to them to let them know abouft our organization and I plan to do the same thing for our Wilkerson said. “They were in the used car businesssanyway – but if you’red stuck like many of them are, the overheaxd costs for a used car dealership is nothinv compared to a franchise.” However, the expansionb of the local used car market comes as prices are increasing and the availability of late-model used cars is he said. But according to Morgan presidentof motorpool.
com, the initiak increase in prices should be looked at as merelyg a short-term hurdle. “At firsrt glance, that would strike the communithy as bad but in thelong run, it’se good for resale values,” Murphuy said. When local consumers buy cars, they will be able to demaned more when they choose tosell it, he said. In the higher resale values might actually revive Americajn car dealers inthe area. “American manufacturing has been similar and just as good as Japanesd andKorean manufacturing, but the problem has been re-saler value and initial prices,” Murphyu said.
In the meantime, Birmingham dealerzs affected can capitalize on the unique landscape of the locak market on the usedcar side, he said. Many are family-ownesd and have been staples in the community formany decades. They are also encouragedf by the fact that local used car salese have seen an uptick amid the recession as buyers are more inclinee to look for a bargain as a meansa tospend less. “Birmingham has a long and distinguished historgy ofreputable dealers,” Murphy said. “Don Drennen has been in businesssince 1908. That’s 101 years of serving our so there’s a culture around businesses like that.
” Their long-standinv history could make localp buyers more inclined to buy used carsfrom them, he Ward Drennen, president of Don Drennen Buici Chrysler and Jeep, said after learning that his dealer agreement had been canceled with Chrysler, expandingh his used car sales seemerd like a real possibility. “We are going to expand our used cardepartmentx drastically,” said Drennen, who was left with more than $2 millio n in Chrysler parts and “We want to offer a greayt value to people who can’t afford a new car.
” Althougbh he hasn’t stopped looking into becominyg a franchisee for other automotivd manufacturers, he is open to the idea of makiny the switch to stay in business. “It is possiblde that we could become a used car said Drennen, who also learned that GM will seek to cance l the dealership agreement he has for his Buick dealership. “We’ve been in Birminghamk long enough that our reputatioj can keepus afloat.
”