Local former Chrysler, GM dealers look to sell used cars - San Francisco Business Times:

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Tony Wilkerson, executive director of the , said his organizationm has begun to lend assistancw to dealers lost in thebankruptcyh shuffle. “Our national organization has already sent letters to them to let them know abouft our organization and I plan to do the same thingt forour state,” Wilkerson said. “They were in the used car busines sanyway – but if you’re stuc k like many of them are, the overheas costs for a used car dealership is nothintg compared to a franchise.” However, the expansiobn of the local used car market comes as price s are increasing and the availability of late-model used cars is he said.
But according to Morgan presidentof motorpool.com, the initial increaswe in prices should be looked at as merely a short-tern hurdle. “At first glance, that would strike the communit as bad but in thelong run, it’sx good for resale values,” Murpht said. When local consumers buy cars, they will be able to deman d more when they choose tosell it, he In fact, the higher resale values might actuallg revive American car dealers in the area.
“American manufacturingg has been similar and just as good as Japanesr andKorean manufacturing, but the problem has been re-sale valur and initial prices,” Murphy In the meantime, Birmingham dealers affected can capitalize on the uniqud landscape of the locapl market on the used car he said. Many are family-ownedd and have been staples in the community for many They are also encouraged by the fact that local used car salese have seen an uptick amid the recessionm as buyers are more inclined to look for a bargainh as a means tospend less. “Birmingham has a long and distinguishedf history ofreputable dealers,” Murphy said.
“Dohn Drennen has been in businesssincew 1908. That’s 101 years of serving our so there’s a culture aroun d businesseslike that.” Their long-standing historyg could make local buyers more inclined to buy used cars from he said. Ward Drennen, president of Don Drennen Buicl Chryslerand Jeep, said after learning that his dealef agreement had been cancelefd with Chrysler, expanding his used car sales seemed like a real “We are going to expand our used car departments said Drennen, who was left with more than $2 milliobn in Chrysler parts and merchandise.
“We want to offer a greatf value to peoplewho can’t afford a new Although he hasn’t stopped looking into becoming a franchisee for other automotive manufacturers, he is open to the idea of makingg the switch to stay in “It is possible that we could become a used car said Drennen, who also learned that GM will seek to cancell the dealership agreement he has for his Buickk dealership.
“We’ve been in Birmingham long enough that our reputation can keepus