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Old 08-10-2015, 04:45 PM   #1
XDCX
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Default Auction of former Chrysler, Jeep, Dodge Dealer Parts Inventory

I was surfing Proxibid earlier today and noticed that they have a liquidation auction of a former Chrysler, Jeep, Dodge Dealer's Part Inventory.

Here's a link to the auction - click here (The link may go away once the auction is complete.)

There are over 300 separate lots and it appears all of the parts are being sold No Reserve. There is a 18% Buy Fee.
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Old 08-10-2015, 04:51 PM   #2
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For those who are not familiar with Proxibid, they tend to offer two different auction formats - one that's 100% Internet Based and another that's a Hybrid of the traditional "live call" auction with Internet Bidding.

The auction listed above is the Hybrid format - bids will be taken on the Internet and can be placed right until the hammer falls by the "live call" auctioneer.

The auction is scheduled to begin on Thursday, August 13th at 10:00 AM
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Old 08-10-2015, 05:00 PM   #3
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Here's a picture of the Dealership complements of Google Street View - circa 2013:


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I have no idea when Gerdon Auto terminated their Chrysler Franchise but it appears they were a non-franchised dealer when Google drove by in 2013.
.
Update: I just checked history on Google Street View and Gerdon Auto was still displaying a CJDR Brand Sign in September, 2009. I wonder if Gerdon Auto was one of the 789?
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Old 08-11-2015, 10:22 AM   #4
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Quote:
Originally Posted by XDCX View Post
I wonder if Gerdon Auto was one of the 789?
I just checked the list of Chrysler 789 Dealers and Gerdon Auto was not among them. There were 19 Dealers who got screwed by the OLDCO Terminations in Indiana but Gerdon Auto was not one of them.

Maybe they were one of the many NEWCO Dealers that died during Marchionne's "Hibernation" period.....

On a different note, I noticed that the Auction House that is handling this auction keeps the auction results archived on Proxibid - it will be interesting to see what the various 300+ lots sell for.
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Old 08-12-2015, 01:09 PM   #5
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Default Gerdon Dodge

http://www.bizjournals.com/louisvill...-chrysler.html
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Old 08-12-2015, 01:11 PM   #6
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It would appear to be some old (NOS) parts that were probably not included in the buy sell that are being auctioned.
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Old 08-12-2015, 01:19 PM   #7
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They were more than likely asked to either build a new facility or renovate this one, which is something they did not want to do especially if the owners were older and not wanting the debt.

These people must have signed the updated 1987 dealer agreement, otherwise with the old perpetual agreement they would have been #790 if they refused it.
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Old 08-13-2015, 05:17 AM   #8
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Quote:
Originally Posted by rd3311 View Post
They were more than likely asked to either build a new facility or renovate this one, which is something they did not want to do especially if the owners were older and not wanting the debt.

These people must have signed the updated 1987 dealer agreement, otherwise with the old perpetual agreement they would have been #790 if they refused it.
I'm glad they got to go out on their terms not Task force terms. Hope they enjoy retirement.
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Old 08-13-2015, 08:53 AM   #9
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Quote:
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Great post - thanks for the link.

I'm happy to concede that my impression was 100% wrong. Neither Cerberus nor FCA did anything to force Gerdon Motors out of business - the Dealer Principal and his family chose to sell the franchise rights and negotiated what appears to be a "win-win" deal. (The Dealer Principal's son and part owner of the store went to work for the new dealer.)

It's great to learn that my impression was wrong and the Dealer was able to leave the new car business on his own terms.
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Old 08-13-2015, 09:00 AM   #10
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Quote:
Originally Posted by rd3311 View Post
It would appear to be some old (NOS) parts that were probably not included in the buy sell that are being auctioned.
Great point.

With a Buy/Sell the new dealer would have had the ability to return any parts that were still being inventoried by FCA. The parts being sold by this auction are likely parts that were so old they were no longer being inventoried by FCA at the time of the Buy/Sell in 2012.

As before, it will be interesting to see how much the parts sell for and how strong the market demand for these parts is.
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Old 08-15-2015, 10:17 AM   #11
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Quote:
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With a Buy/Sell the new dealer would have had the ability to return any parts that were still being inventoried by FCA. The parts being sold by this auction are likely parts that were so old they were no longer being inventoried by FCA at the time of the Buy/Sell in 2012.
I thought about this post last night and recalled that it's been a long time since I did a termination or Buy/Sell return with Chrysler - it's entirely possible that they've changed their terms.

In the old days Chrysler would buy back all of the parts that were "in the book" regardless of how long the Dealership had them in inventory. Based on the auction description I'm guessing that Chrysler now limits Buy/Sell parts returns to only those parts purchased within the past two years that are still "in the book."
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Old 08-17-2015, 12:14 PM   #12
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WOW! I just looked through the listing to see what the parts brought. I remember attending a similar auction years ago of a "Five Star" dealer that was closed up by Chrysler Financial. I traveled 230 miles one way to attend and didn't bring a large enough trailer to fit everything and had to go back. The thing that amazed me was there was only one other Chrysler dealer at the auction! He bought very little. I can't remember the exact parts, but we retailed 4 numbers and the profit on those 4 parts paid for the rest of the parts and expenses of the trip.

The EX-Dealer was there with his wife, we talked for a while and I just felt so bad for them. We never got into details of the closure but he did say that CFC came in while he was on a Five Star trip.

That fact always bothered me.

Last edited by steve_biegler; 08-17-2015 at 02:02 PM.
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Old 08-17-2015, 03:30 PM   #13
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Quote:
Originally Posted by steve_biegler View Post
WOW! I just looked through the listing to see what the parts brought. I remember attending a similar auction years ago of a "Five Star" dealer that was closed up by Chrysler Financial. I traveled 230 miles one way to attend and didn't bring a large enough trailer to fit everything and had to go back. The thing that amazed me was there was only one other Chrysler dealer at the auction! He bought very little. I can't remember the exact parts, but we retailed 4 numbers and the profit on those 4 parts paid for the rest of the parts and expenses of the trip..
I got the impression the pricing on the old parts was a bit of a mixed bag. I thought the stack of floor mats for $300 and the Service Manuals for $900 seemed like the prices were pretty high. I also got that impression when I saw items sell that would have virtually ZERO chance of ever selling - old A/C hoses, trans cooler lines, dip sticks, etc.

On the flip side, it appeared that some of the take-off alloy wheel were selling for less than scrap - I thought there were some good deals there.

Overall, it appears that Parts Department was a Dealer's nightmare - tons of obsolescence and Special Order Parts that were never installed.

Quote:
Originally Posted by steve_biegler View Post
The EX-Dealer was there with his wife, we talked for a while and I just felt so bad for them. We never got into details of the closure but he did say that CFC came in while he was on a Five Star trip.

That fact always bothered me.
That does sound pretty cold blooded.

Most of the Dealers that I knew had a pretty strong relationship with CFC - that definitely changed in the Cerberus era.
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