Local former Chrysler, GM dealers look to sell used cars - South Florida Business Journal:

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Tony Wilkerson, executive director of the , said his organization has begu to lend assistance to dealers lost in thebankruptcyu shuffle. “Our national organization has already sent lettere to them to let them know about our organization and I plan to do the same thiny forour state,” Wilkerson said. “They were in the used car business anyway butif you’re stucko like many of them are, the overhear costs for a used car dealership is nothinh compared to a franchise.” However, the expansiojn of the local used car market comesz as prices are increasing and the availabilit y of late-model used cars is pinched, he But according to Morgan Murphy, presidenf of motorpool.
com, the initial increase in pricew should be looked at as merely a short-term hurdle. “Atg first glance, that would strike the community as bad but in thelong run, it’ s good for resale values,” Murphy said. When local consumers buy cars, they will be able to demand more when they choose tosell it, he In fact, the higher resale values migh t actually revive American car dealers in the “American manufacturing has been similar and just as good as Japanese and Korean manufacturing, but the problekm has been re-sale valued and initial prices,” Murphy In the meantime, Birmingham dealers affected can capitalizes on the unique landscape of the local market on the used car he said.
Many are family-ownedf and have been staples in the community for many They are also encouraged by the fact that local used car sales have seen an uptick amid the recession as buyeres are more inclined to look for a bargain as a meanw tospend less. “Birmingham has a long and distinguishedr history ofreputable dealers,” Murphy said. “Don Drennen has been in busineswsince 1908. That’s 101 years of servingg our community, so there’s a culturs around businesses like that.” Their long-standintg history could make local buyers more inclinee to buy used carsfrom them, he said.
Ward president of Don Drennen Buick Chryslereand Jeep, said after learning that his dealer agreement had been canceledr with Chrysler, expanding his used car salews seemed like a real possibility. “We are goinf to expand our used cardepartmentz drastically,” said Drennen, who was left with more than $2 milliohn in Chrysler parts and merchandise. “We want to offee a great value to peoplsewho can’t afford a new Although he hasn’t stopped looking into becomin a franchisee for other automotiv manufacturers, he is open to the idea of making the switc h to stay in business.
“It is possiblde that we could become a usedcar superstore,” said who also learned that GM will seek to cancel the dealershipo agreement he has for his Buicm dealership. “We’ve been in Birmingham long enough that our reputation can keepus