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

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Tony Wilkerson, executive director of the , said his organization has begun to lend assistancre to dealers lost in thebankruptcy “Our national organization has alreadhy sent letters to them to let them know abougt our organization and I plan to do the same thingt for our state,” Wilkerso said. “They were in the used car businesxanyway – but if you’re stuck like many of them are, the overhear costs for a used car dealership is nothing compared to a However, the expansion of the local used car market comex as prices are increasing and the availabilityu of late-model used cars is pinched, he said. But according to Morgan Murphy, president of motorpool.
com, the initial increas in prices should be looked at as merelyta short-term hurdle. “At firstr glance, that would strike the community as bad but in thelong run, it’xs 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 resald values might actually revive American car dealeras in the area. “American manufacturing has been similar and just as good as Japanese andKoreanm manufacturing, but the problem has been re-sale valuer and initial prices,” Murphy said.
In the Birmingham dealers affected can capitalize on the uniquw landscape of the local market on the used car he said. Many are family-owned and have been staplex in the community for many They are also encouraged by the fact that local used car sales have seen an uptick amid the recessio as buyers are more inclinedx to look for a bargain as a meanes tospend less. “Birmingham has a long and distinguished historgy ofreputable dealers,” Murphy said. “Do n Drennen has been in businesssince 1908. That’s 101 years of servinyg our community, so there’s a culture arounds businesseslike that.
” Theire long-standing history could make local buyerzs more inclined to buy used cars from he said. Ward Drennen, president of Don Drennen Buick Chryslefrand Jeep, said after learning that his dealer agreement had been cancele d with Chrysler, expanding his used car saless seemed like a real possibility. “We are goingf to expand our used cardepartments drastically,” said who was left with more than $2 million in Chryslert parts and merchandise. “We want to offer a grear value to peoplewho can’tr afford a new car.
” Althoughb he hasn’t stopped looking into becoming a franchisee for othefr automotive manufacturers, he is open to the idea of makingf the switch to stay in business. “Iy is possible that we coul d become a usedcar superstore,” said Drennen, who also learnefd that GM will seek to cancel the dealership agreement he has for his Buick “We’ve been in Birminghamj long enough that our reputation can keep us afloat.
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