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

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Tony Wilkerson, executive director of the , said his organizatiomn has begun to lend assistancw to dealers lost in thebankruptcy “Our national organization has already sent letters to them to let them know aboutf our organization and I plan to do the same thingy for our state,” Wilkerson “They were in the used car business anyway – but if you’re stuck like many of them are, the overheax costs for a used car dealership is nothingt compared to a franchise.” However, the expansion of the locall used car market comes as pricesa are increasing and the availability of late-model used cars is he said. But according to Morgan presidentof motorpool.
com, the initial increasse in prices should be looked at as merelgy a short-term hurdle. “At first glance, that would strikee the community as bad but in thelong run, it’s good for resale values,” Murphy When local consumers buy cars, they will be able to demane more when they choose to sell it, he In fact, the highe r resale values might actually revive American car dealer s in the area. “American manufacturinv has been similar and just as good as Japanese andKorea manufacturing, but the problem has been re-sale value and initialo prices,” Murphy said.
In the meantime, Birmingham dealers affected can capitalized on the unique landscape of the local marketf on the usedcar side, he Many are family-owned and have been staplea in the community for many decades. They are also encouraged by the fact that localp used car sales have seen an upticik amid the recession as buyers are more inclinec to look for a bargain as a means tospend less. “Birmingham has a long and distinguisheds history of reputable Murphy said. “Don Drennen has been in businesssince 1908. That’s 101 years of serving our community, so there’s a culturre around businesseslike that.
” Theitr long-standing history could make local buyeras more inclined to buy used cars from them, he Ward Drennen, president of Don Drennen Buick Chrysler and said after learning that his dealer agreemengt had been canceled with Chrysler, expanding his used car salese seemed like a real possibility. “We are goinv to expand our used cardepartmentzs drastically,” said Drennen, who was left with more than $2 millionn in Chrysler parts and merchandise.
“Wr want to offer a great valuew to peoplewho can’t afford a new Although he hasn’t stopped looking into becoming a franchises for other automotive manufacturers, he is open to the idea of makingg the switch to stay in business. “It is possible that we coulx become a used car said Drennen, who also learned that GM will seek to cancel the dealershi agreement he has for his Buick dealership. “We’ve been in Birmingham long enough that our reputationb can keepus afloat.
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