Billyspeed

As Car Dealerships Disappear, Auto Nation Pulls Through

Auto Nation might be a suvivor but that is hardly an investment recommendation. The business model is clearly broken and nobody can predict the dramatic consequences the bankruptcy of any or all of the (former) Big 3 will have on the dealership count. The number of dealers will continue to contract significantly and Auto Nation will gain share but it's only a temporary gain as the way we buy cars is quickly changing. The notion of a vast lot of cars visited by customers being financed by dealers and manufacturers is a quaint 20th century business model. It will disappear. Bottom line: Most of the dealer groups will be gone along with the business model.