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Old 03-30-2014, 07:13 PM   #1
adastra
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Join Date: Mar 2014
Posts: 41
Default Future of Independent Used Car dealerships?

Honestly I don't see myself doing it much longer. New car stores are holding on to anything they can sell, and the Buy Here Pay Here's create a ridiculous auction atmosphere. People have less cash, and worse credit. Cars are getting so complicated that each make requires its own multi-thousand dollar computer to properly diagnose and repair.

It was so easy to get inventory when I started doing this 5 years ago. Auctions would be fun.

My lot is about 40% full at the moment. The only cars I can buy that stand a chance to make money on are projects, either mechanical or cosmetic, which means a 1-2 week delay before they hit the lot. Buyers are out there, but thanks to the harsh, slow winter and changing atmosphere, cars are not. While sales are still up, my margins are thinner than ever.

Thanks to the internet, people become experts after a 30 second internet search for book values. They are nastier when it comes to haggling as ever. Many have the gall to pretend to be cash buyers, then after negotiations say they need financing. Not a big deal if banks didn't charge me $500 to finance a marginal credit customer.

I'm lucky to have an opportunity pop up again that I passed on years ago. Normal hours, good salary, part ownership, and I'm out with people, not tied to a desk. If I say yes, I would be closing up about this time next year.

Doesn't seem that many of the old guard of independents around town are holding out either... many are choosing to retire.
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