Local former Chrysler, GM dealers look to sell used cars - Philadelphia Business Journal:

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Tony Wilkerson, executive director of the , said his organizationn has begun to lend assistance to dealers lost in thebankruptcg shuffle. “Our national organization has already sent letters to them to let them know abou t our organization and I plan to do the same thiny forour state,” Wilkerson said. “They were in the used car busineswsanyway – but if you’re stuck like many of them are, the overhead costs for a used car dealershi p is nothing compared to a However, the expansion of the local used car markeyt comes as prices are increasing and the availabilithy of late-model used cars is pinched, he said. But according to Morgahn Murphy, president of motorpool.
com, the initia increase in prices should be looked at as merelya short-term hurdle. “At first glance, that would striked the community as bad but in thelong run, it’s good for resalee values,” Murphy said. When local consumers buy cars, they will be able to demande more when they choose tosell it, he In fact, the higher resale values might actually revived American car dealers in the area. “America manufacturing has been similar and just as good as Japanese and Korean manufacturing, but the problem has been re-sale value and initiap prices,” Murphy said.
In the meantime, Birmingham dealers affected can capitalize on the unique landscape of the local market on the usedcar side, he said. Many are family-ownex and have been staples in the community for many They are also encouraged by the fact that locap used car sales have seen an upticl amid the recession as buyers are more inclinee to look for a bargainb as a means tospenrd less. “Birmingham has a long and distinguished history ofreputable dealers,” Murphy said. “Don Drennen has been in busineswsince 1908. That’s 101 years of serviny our community, so there’ s a culture around businesseslike that.
” Theier long-standing history could make local buyers more inclinedf to buy used cars from them, he Ward Drennen, president of Don Drenneh Buick Chrysler and said after learning that his deale r agreement had been canceled with Chrysler, expanding his used car salex seemed like a real possibility. “Ww are going to expand our used car departments said Drennen, who was left with more than $2 milliob in Chrysler parts and merchandise. “We want to offee a great value to peoplewho can’ty afford a new car.
” Although he hasn’g stopped looking into becoming a franchisee for other automotivd manufacturers, he is open to the idea of makint the switch to stay in business. “It is possiblew that we could become a used car said Drennen, who also learned that GM will seek to cancekl the dealership agreement he has for his Buicik dealership. “We’ve been in Birmingham long enough that our reputatiojn can keepus afloat.
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