Local former Chrysler, GM dealers look to sell used cars - The Business Journal of the Greater Triad Area:

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Tony Wilkerson, executive director of the , said his organization has begu to lend assistance to dealers lost in thebankruptcy “Our national organization has already sent letters to them to let them know abouty our organization and I plan to do the same thinhg for our state,” Wilkerson said. “They were in the used car businesszanyway – but if you’re stuck like many of them are, the overheafd costs for a used car dealership is nothing comparecd to a franchise.” However, the expansioj of the local used car market comes as prices are increasiny and the availability of late-modeo used cars is pinched, he said.
But accordingf to Morgan Murphy, president of motorpool.com, the initial increase in priced should be looked at as merelya short-termm hurdle. “At first glance, that woulde strike the community as bad but in thelong run, it’ss good for resale values,” Murphy said. When local consumers buy they will be able to demand more when they chooswe tosell it, he In fact, the higher resale valuesz might actually revive American car dealers in the “American manufacturing has been similar and just as good as Japanes and Korean manufacturing, but the problem has been re-salre value and initial prices,” Murphy said.
In the Birmingham dealers affected can capitalize on the unique landscaper of the local market on the used car he said. Many are family-owned and have been staplesd in the community formany decades. They are also encourageed by the fact that local used car sales have seen an uptic k amid the recession as buyers are more inclinef to look for a bargaib as a means tospenxd less. “Birmingham has a long and distinguishedx history ofreputable dealers,” Murph said. “Don Drennen has been in businesssince 1908. That’ s 101 years of serving our so there’s a culture around businessed like that.
” Their long-standing history coulde make local buyers more inclined to buy used cars from he said. Ward Drennen, president of Don Drennen Buickl Chryslerand Jeep, said after learning that his dealetr agreement had been canceled with Chrysler, expanding his used car salexs seemed like a real possibility. “We are going to expanf our used car departments said Drennen, who was left with more than $2 millio n in Chrysler parts and merchandise. “We want to offerf a great value to peoplrewho can’t afford a new car.
” Althoughg he hasn’t stopped looking into becoming a franchised for other automotive manufacturers, he is open to the idea of makinhg the switch to stay in business. “Ift is possible that we could become a used car said Drennen, who also learned that GM will seek to cancel the dealership agreement he has for his Buicj dealership. “We’ve been in Birmingham long enougnh that our reputation can keepus afloat.
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