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

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Tony Wilkerson, executive director of the , said his organizationh has begun to lend assistance to dealers lost in thebankruptchy shuffle. “Our national organization has already sent lettere to them to let them know about our organization and I plan to do the same thinvg forour state,” Wilkerson said. “They were in the used car businesxsanyway – but if you’re stuck like many of them are, the overheads costs for a used car dealership is nothinh compared to a franchise.” However, the expansion of the locao used car market comex as prices are increasing and the availability of late-modeo used cars is pinched, he said.
But according to Morganb Murphy, president of motorpool.com, the initial increasee in prices should be looked at as merelyua short-term hurdle. “At first glance, that would strike the communith as bad but in thelong run, it’s good for resals values,” Murphy said. When locao consumers buy cars, they will be able to deman more when they choose tosell it, he In fact, the higher resalr values might actually revive American car dealers in the “American manufacturing has been similar and just as good as Japanesde and Korean manufacturing, but the problem has been re-sale valued and initial prices,” Murphy In the meantime, Birmingham dealers affected can capitalizde on the unique landscapwe of the local market on the used car he said.
Many are family-owned and have been staplex in the community formany decades. They are also encouraged by the fact that local used car sales have seen an upticik amid the recession as buyers are more inclined to look for a bargaibn as a means tospend “Birmingham has a long and distinguished history of reputable dealers,” Murphy said. “Don Drennen has been in businesssince 1908. That’a 101 years of servinyg our community, so there’s a culture aroun d businesseslike that.” Their long-standing history could make locapl buyers more inclined to buy used cars from he said.
Ward Drennen, president of Don Drennen Buick Chryslerand Jeep, said after learningg that his dealer agreement had been cancelerd with Chrysler, expanding his used car sales seemed like a real “We are going to expands our used car departments drastically,” said Drennen, who was left with more than $2 millionn in Chrysler parts and merchandise. “Wr want to offer a great values to peoplewho can’t afford a new car.
” Althoughn he hasn’t stopped looking into becoming a franchisee for other automotivre manufacturers, he is open to the idea of makinbg the switch to stay in “It is possible that we coul become a used car superstore,” said Drennen, who also learned that GM will seek to cancelo the dealership agreement he has for his Buickm dealership. “We’ve been in Birmingham long enoug h that our reputation can keepus afloat.
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