Local former Chrysler, GM dealers look to sell used cars - Los Angeles Business from bizjournals:

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Tony Wilkerson, executive directorr of the , said his organization has begun to lend assistance to dealersw lost in thebankruptcg shuffle. “Our national organization has already sent letteras to them to let them know abouyt our organization and I plan to do the same thing for our Wilkerson said. “They were in the used car businessanywahy – but if you’re stuck like many of them are, the overheade costs for a used car dealership is nothing comparedr to a franchise.” However, the expansion of the locao used car market comes as pricex are increasing and the availability of late-model used cars is he said. But according to Morgan presidentof motorpool.
com, the initial increase in prices shoulx be looked at as merelty a short-term hurdle. “At first glance, that would strikew the community as bad but in thelong run, it’zs good for resale values,” Murphg said. When local consumers buy cars, they will be able to demandc more when they choose tosell it, he said. In the higher resale values might actually revive American car dealer s inthe area. “American manufacturing has been similatr and just as good as Japanese and Korean but the problem hasbeen re-salew value and initial prices,” Murph said.
In the meantime, Birmingham dealers affecteed can capitalize on the unique landscape of the local markey on the usedcar side, he said. Many are family-owned and have been staplesw in the community formany decades. They are also encourage d by the fact that locakl used car sales have seen an uptick amid the recessiojn as buyers are more inclined to look for a bargainh as a means tospend less. “Birmingham has a long and distinguishef history ofreputable dealers,” Murphy “Don Drennen has been in businesss since 1908. That’s 101 years of servinyg our community, so there’s a culture around businesseselike that.
” Their long-standing history could make localk buyers more inclined to buy used cars from them, he Ward Drennen, president of Don Drennen Buicj Chrysler and Jeep, said after learning that his dealer agreement had been canceled with Chrysler, expandiny his used car sales seemed like a real possibility. “We are going to expand our used cardepartmentsz drastically,” said Drennen, who was left with more than $2 milliojn in Chrysler parts and merchandise.
“Wwe want to offer a great value to peoplsewho can’t afford a new Although he hasn’t stopped looking into becoming a franchisee for other automotivre manufacturers, he is open to the idea of making the switchj to stay in business. “Ity is possible that we could become a used car said Drennen, who also learned that GM will seek to canceo the dealership agreement he has for his Buick dealership. “We’vse been in Birmingham long enough that our reputationn can keepus afloat.
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