Dealerships Closing Doors?
Until the middle of May I drove 37 miles one way to work, I now only drive 16. Still, my old house, while being a very nice country home, and well-priced, will probably never sell.
A 20-22 mpg Windstar doesn't really cut it. I'm still trying to find a cheap Geo Metro for sale...
A 20-22 mpg Windstar doesn't really cut it. I'm still trying to find a cheap Geo Metro for sale...
Here in NE Ohio people are chomping at the bit to find Toyota Prius'. There are none to be found that aren't already spoken for. That is until a local dealer bought 100 of them to use just as rental cars. Here's the catch...they have to keep them as rentals for four months and then can give the option to buy. So in their infinite stealership wisdom they are offering to do a rent to buy at $900 a month for the first four months. Only $200 of the $900 a month will go towards the purchase. Crazier yet is the amount of people they have in line to do this.
Guys, as you probably know, I'm in the business. Have been for the past 11+ years at the same store I started at, when I was only 20 years old. BOY HAS THINGS CHANGED!!!
I can honestly tell you, I am glad I work at a small family run dealership, instead of the globo-dealer! The big stores are the ones that are hurting the most, as they are the ones who mortgaged their future on new upgrades like new showroom, new shop, new everything, and have the gutten of pickups on their lot, just gathering dust!
One issue with this, YOU NEED BUSINESS!! With gas now over $4.00 a gallon here in SE Pennsylvania, people are just shocked at this. And the rumor is, gas may level off around $7-$8 a gallon! You want problems, ask those Hummer dealers now, how they are liking all the money they spent for stand-alone, designer stores, only to now hear that GM will either sell the brand, or discountinue it alltogether. Small cars are the only thing selling right now. The small stores, that are low on overhead, and have been around for ages, will survive. The big places, that paid out the rear for improvements are the ones closing! Around us, we lost Norristown Ford, and they were a big dealer, with an upgraded store (in the past several years). We are small, have only 5 salespeople, and an older showroom, but we keep at it, and do well. Not like the past, but enough to survive. I'm thankful for repeat business, and friends of friends coming in to purchase!!
I can honestly tell you, I am glad I work at a small family run dealership, instead of the globo-dealer! The big stores are the ones that are hurting the most, as they are the ones who mortgaged their future on new upgrades like new showroom, new shop, new everything, and have the gutten of pickups on their lot, just gathering dust! One issue with this, YOU NEED BUSINESS!! With gas now over $4.00 a gallon here in SE Pennsylvania, people are just shocked at this. And the rumor is, gas may level off around $7-$8 a gallon! You want problems, ask those Hummer dealers now, how they are liking all the money they spent for stand-alone, designer stores, only to now hear that GM will either sell the brand, or discountinue it alltogether. Small cars are the only thing selling right now. The small stores, that are low on overhead, and have been around for ages, will survive. The big places, that paid out the rear for improvements are the ones closing! Around us, we lost Norristown Ford, and they were a big dealer, with an upgraded store (in the past several years). We are small, have only 5 salespeople, and an older showroom, but we keep at it, and do well. Not like the past, but enough to survive. I'm thankful for repeat business, and friends of friends coming in to purchase!!
I have got to be honest as a Ford consumer. While I'm not running out to buy a new little car or a fuel saving used car, it will be a very long time now before I replace my '06 truck and '07 suv. I'll keep them longer now maybe 8 years or so. I don't use much gas, period, and luckily my job is 3 blocks from my house. So the local Ford dealership won't be seeing me anytime soon, whereas I used to trade in every 2-3 years. Sorry guys. I'll pay for the increase in gas but not in addition to a higher car payment.
Well we surely have been carefully terrorized by the MSM like sheep about gas prices, spend $900 per month on starbucks, vending machine quick fixes, eating $12 lunches, yet worry about $80 more a month in gas...... As far as dealerships go, Ford is in the process of buying out dealerships, they still need to cut it back about 1000 more. In this general area alone there are over 25 Ford dealers, Toyota spreads them out about 1-3 to keep them profitable. Not to mention, the trend in the auto business has been to butcher salesperson's pay, particularly in large dealerships with flooded floors. I work at a small store too, at the big ones you put up with a ton of crap to barely make $100 on a new car.
Last edited by kevinb120; Jun 12, 2008 at 01:50 PM.
Not much different in the service department I bet either. I came from a local Ford dealership where almost none of the advisors made any real money; largely because there were 10 advisors. A couple made good money - because they had been there for 10+ years and had large accounts with fleet vehicles. The others were (and still are) struggling from check to check.
Here in greater Cleveland have lost Great Lakes City Ford (nee Bud Brady/Grabski Ford), Clarke Ford, Wadsworth Ford and one more that will be shutting down at the end of the month. (Can't say who at this point.)
Officially, Williams Ford of Berea in business since 1924 has closed its doors. I spent my first 20 Years in the car business there, a tear is shed....
Last edited by Tiberius1701; Jun 29, 2008 at 07:35 AM.
I shed no tears for Clarke Ford closing, their service and sales was horrible. Guess that's why they no longer have that part of the dealership...too bad they still have the Volkswagen dealer there.
Oh yeah, I agree. For years I heard horror stories of their sales tactics..the gate closing behind you upon entry was the best. You didn't leave unless you spoke with a salesperson it was said.
Yeah, the whole gate thing there was freaky...There's only one other dealer worse than that and that's Fred Martin. They have the gate as well...along with sales people perched in what looks to be a covered bus stop as you pull in. I went there once and that was enough to deter me from ever going back.



