Local former Chrysler, GM dealers look to sell used cars - Business Courier of Cincinnati:

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Tony Wilkerson, executive director of the , said his organizationj has begun to lend assistanc e to dealers lost in thebankruptcy shuffle. “Oue national organization has already sent letters to them to let them know abouy our organization and I plan to do the same thingg forour state,” Wilkerson said. “They were in the used car businesanyway – but if you’re stuck like many of them are, the overheadd costs for a used car dealership is nothinyg compared to a franchise.” However, the expansion of the locapl used car market comes as prices are increasing and the availabilityu of late-model used cars is pinched, he said.
But accordinh to Morgan Murphy, president of the initial increase in prices shouldc be looked at as merelya short-term hurdle. “At firs t glance, that would strike the community as bad but in thelong run, it’d good for resale values,” Murphy When local consumers buy cars, they will be able to demansd more when they choose to sell it, he In fact, the higher resale values mighyt actually revive American car dealerz in the area.
“American manufacturing has been similar and just as good as Japanesed andKorean manufacturing, but the problem has been re-sale valuer and initial prices,” Murphy In the meantime, Birminghamk dealers affected can capitalize on the unique landscape of the local market on the used car side, he said. Many are family-owne d and have been staples in the community for many They are also encouraged by the fact that local used car saleds have seen an upticok amid the recession as buyersa are more inclined to look for a bargain as a meand tospend less. “Birmingham has a long and distinguished history ofreputables dealers,” Murphy said.
“Don Drennen has been in businesessince 1908. That’s 101 years of serving our so there’s a culture around businesses like that.” Their long-standing history could make local buyers more inclined to buy used cars from he said. Ward Drennen, president of Don Drennen Buico Chryslerand Jeep, said after learning that his dealet agreement had been canceled with expanding his used car sales seemed like a real possibility. “Wer are going to expand our used cardepartments drastically,” said who was left with more than $2 millio in Chrysler parts and merchandise. “We want to offer a greatg value to peoplewho can’t afford a new car.
” Althougj he hasn’t stopped looking into becominfg a franchisee for other automotive manufacturers, he is open to the idea of makingg the switch to stay in business. “Itg is possible that we couldr become a usedcar superstore,” said Drennen, who also learnerd that GM will seek to cancel the dealership agreement he has for his Buicko dealership. “We’ve been in Birminghaj long enough that our reputation can keepus afloat.
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