another big dealership goes belly up

JoshuaTree · 02-05-2009, 10:50 AM

Its not how many cars, its how much profit per vehicle versus the cost of overhead of these 'mega' car dealerships. With squeezed margins (e.g. 'employee pricing', Factory 0% Financing, etc.) the dealerships simply don't have the profit to continue operations. Most of them are based on a sales model that's decades old, and that is no longer valid.

You'll see the small, single line dealerships with old buildings in bad locations survive because their overhead is low (likely the buildings and equipment are paid for already).

Your favorite motorcycle shops are next...

02-05-2009, 10:50 AM	#3
JoshuaTree DILLIGAF? Join Date: Nov 2008 Location: Austin, Texas, USA, Earth, Sol, Western Spiral Arm, Milky Way Moto: 1993 K75SA Posts: 483	Its not how many cars, its how much profit per vehicle versus the cost of overhead of these 'mega' car dealerships. With squeezed margins (e.g. 'employee pricing', Factory 0% Financing, etc.) the dealerships simply don't have the profit to continue operations. Most of them are based on a sales model that's decades old, and that is no longer valid. You'll see the small, single line dealerships with old buildings in bad locations survive because their overhead is low (likely the buildings and equipment are paid for already). Your favorite motorcycle shops are next... __________________ "Quis custodiet ipsos custodes?" "Learn to do the counter-intuitive things that may one day save your ass..." "... Love Much, Laugh Often..." - Amanda Kay Corso (January 18, 1980 - April 15, 2008)