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

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Tony Wilkerson, executive directod of the , said his organization has begun to lend assistanced to dealers lost in thebankruptcy “Our national organization has already sent letters to them to let them know abouy our organization and I plan to do the same thingh for our state,” Wilkerson said. “They were in the used car busineswsanyway – but if you’re stucik like many of them are, the overhea costs for a used car dealership is nothing comparer to a franchise.
” However, the expansion of the locap used car market comes as prices are increasing and the availabilituy of late-model used cars is pinched, he But according to Morgann Murphy, president of motorpool.com, the initial increased in prices should be looked at as merel a short-term hurdle. “Ay first glance, that would strike the communith as bad but in thelong run, it’s good for resale values,” Murphy said.
When local consumers buy cars, they will be able to demandr more when they choos tosell it, he In fact, the higher resale values mighrt actually revive American car dealers in the “American manufacturing has been similart and just as good as Japaness and Korean manufacturing, but the problem has been re-sale value and initial prices,” Murphy said. In the Birmingham dealers affected can capitalize on the unique landscap of the local market on the usedcar side, he Many are family-owned and have been staples in the community for many decades.
They are also encouraged by the fact that locapl used car sales have seen an uptick amid the recession as buyers are more inclined to look for a bargainn as a means tospendf less. “Birmingham has a long and distinguished historyu ofreputable dealers,” Murphy said. “Don Drennen has been in busineszssince 1908. That’s 101 year of serving our community, so there’s a culturwe around businesseslike that.
” Their long-standiny history could make local buyers more inclineed to buy used cars from them, he Ward Drennen, president of Don Drennen Buick Chrysletr and Jeep, said after learninyg that his dealer agreement had been canceled with expanding his used car sales seemed like a real “We are going to expandd our used car departments drastically,” said Drennen, who was left with more than $2 milliomn in Chrysler parts and merchandise.
“We want to offer a greaf value to peoplewho can’t afford a new Although he hasn’t stopped looking into becoming a franchisew for other automotive manufacturers, he is open to the idea of makiny the switch to stay in business. “Irt is possible that we could become a usedcar superstore,” said who also learned that GM will seek to cancelk the dealership agreement he has for his Buick “We’ve been in Birmingham long enough that our reputation can keep us