Report: 1 in 5 Car Dealerships Will Close Soon?
continued from car week…
“Nearly one in every five car dealerships in the U.S. will close this fall, consulting firm Grant Thornton said.”
“An estimated 3,800 auto dealers will go out of business in coming months, Melville said, up from a previous estimate of 2,700.”
The article also includes year-over-year September sales for major brands.
I’m wondering where all that inventory re-appears and at what cost basis?
Eventually, does the bottom fall out for new car prices?
Or does the top flatten out while the bottom firms up?
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Wow. I think, like the stock market, the “bottom” has to be somewhere. They’re in a pinch too, and if you’ve got an inkling for a new ride, like the stock market and cheap stocks, now is a good time to buy if you have the money!
I agree with Hank that there is a bottom there somewhere HOWEVER - now is definitely not the time to buy a new car!
You must stick with the banger until the economy brightens. It’s a shame for those in the motor trade but there is going to be a lot more blood on the streets until it’s finished.
That sounds about right, UA. The new car prices I’m getting don’t jive with the economic reality. Currently, we’re shooting for an ‘04 model with low miles and high depreciation.
I actually talked to a car dealer the other day at a party. He owns 7 dealerships and says he is closing 2. He has also started taking cars to auctions, because he can’t sell them. The price at auction is below his cost. Not good for the car companies.