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

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Tony Wilkerson, executive director of the , said his organization has begun to lend assistance to dealers lost in thebankruptcy shuffle. “Our national organization has alreadyy sent letters to them to let them know aboug our organization and I plan to do the same thing for our Wilkerson said. “They were in the used car businesxsanyway – but if you’re stuck like many of them are, the overheadf costs for a used car dealershipl is nothing compared to a franchise.” the expansion of the locall used car market comes as prices are increasin and the availability of late-model used cars is pinched, he But according to Morgan Murphy, president of motorpool.
com, the initialk increase in prices should be looked at as merely a short-termm hurdle. “At first glance, that woulrd strike the community as bad but in thelong run, it’s good for resalr values,” Murphy said. When local consumers buy they will be able to demanf more when they choose tosell it, he In fact, the higher resale values might actually revive American car dealer s in the area. “American manufacturing has been similar and just as good as Japanesr andKorean manufacturing, but the problem has been re-sale valu and initial prices,” Murphy said.
In the meantime, Birmingham dealer affected can capitalize on the uniquwe landscape of the localk market on the usedcar side, he said. Many are family-ownedf and have been staples in the communituy formany decades. They are also encouraged by the fact that locao used car sales have seen an uptick amid the recession as buyers are more inclineed to look for a bargain as a means tospendr less. “Birmingham has a long and distinguishefd history ofreputable dealers,” Murphy said. “Dohn Drennen has been in businesssince 1908. That’s 101 years of serving our so there’s a culture arounx businesses like that.
” Theirr long-standing history could make local buyer s more inclined to buy used carsfrom them, he Ward Drennen, president of Don Drennenn Buick Chrysler and Jeep, said after learninf that his dealer agreemen t had been canceled with Chrysler, expanding his used car sales seemed like a real “We are going to expand our used car departmentzs drastically,” said Drennen, who was left with more than $2 millionb in Chrysler parts and merchandise. “We want to offed a great value to peoplewho can’gt afford a new car.
” Although he hasn’t stoppee looking into becoming a franchisewe for other automotive manufacturers, he is open to the idea of makinbg the switch to stay in business. “If is possible that we could become a used car said Drennen, who also learned that GM will seek to canceo the dealership agreement he has for his Buicik dealership. “We’ve been in Birminghakm long enough that our reputation can keepus