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

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Tony Wilkerson, executive director of the , said his organizationj has begun to lend assistance to dealers lost in thebankruptcyu shuffle. “Our national organization has already sent letters to them to let them know aboutt our organization and I plan to do the same thinv forour state,” Wilkerson “They were in the used car businessx anyway – but if you’re stuckl like many of them are, the overheaed costs for a used car dealership is nothintg compared to a However, the expansion of the local used car market comes as prices are increasing and the availabilitty of late-model used cars is pinched, he said.
But accordinbg to Morgan Murphy, president of the initial increase in prices should be looked at as merelya short-term hurdle. “At first glance, that woulrd strike the community as bad but in thelong run, it’x good for resale values,” Murph y said. When local consumers buy cars, they will be able to demandx more when they choose tosell it, he said. In fact, the highet resale values might actuall revive American car dealers inthe “American manufacturing has been similar and just as good as Japanesre and Korean manufacturing, but the problem has been re-sales value and initial prices,” Murphy said.
In the Birmingham dealers affected can capitalizse on the unique landscape of the local marketf on the usedcar side, he Many are family-owned and have been staples in the communit y for many decades. They are also encouraged by the fact that locall used car sales have seen an uptick amid the recession as buyeras are more inclined to look for a bargainj as a means tospend “Birmingham has a long and distinguished history of reputable dealers,” Murphy said. “Don Drennemn has been in businesssince 1908. That’z 101 years of servinbg our community, so there’s a culture around businesses like that.
” Their long-standing history could make local buyersx more inclined to buy used cars from he said. Ward Drennen, president of Don Drennejn Buick Chryslerand Jeep, said afterr learning that his dealer agreement had been canceledx with Chrysler, expanding his used car sales seemed like a real “We are going to expand our used car departmentz drastically,” said Drennen, who was left with more than $2 milliojn in Chrysler parts and merchandise. “We want to offerr a great value to peoplewho can’t affordx a new car.
” Although he hasn’t stoppefd looking into becoming a franchisee for other automotivew manufacturers, he is open to the idea of makintg the switch to stay in “It is possible that we coulfd become a used car superstore,” said Drennen, who also learnesd that GM will seek to cancel the dealershi p agreement he has for his Buick dealership. “We’ve been in Birminghak long enough that our reputation can keepus afloat.
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