billddrummer

The Changing Model of Auto Dealerships Presents Long Term Investment Opportunity

To F Charlie,

Visit your friendly neighborhood dealer and walk away without a sales contract.

Although a former salesman at a dealership here in Reno forged a customer's signature on a sales contract and had the lot boy deliver the vehicle to her!

She had it repoed, and the car eventually got auctioned locally for thousands less than list.

But that's what I'd do. I was stuck, so I ended up overpaying for my new car. Read my earlier comment. I knew I was overpaying, but had no choice.

The Changing Model of Auto Dealerships Presents Long Term Investment Opportunity

Don't forget the buying clubs run by Sam's Club, Costco and the like. They'll cut you a deal as well.

And while we're on the subject, if anyone wasn't aware that there's lots of room in new car prices, how is it that manufacturers are offering thousands of dollars in incentives to get you to buy now? MSRP means nothing, and probably hasn't for years.

The only people paying full boat now are ones who are 1)stuck or 2)stupid.

The Changing Model of Auto Dealerships Presents Long Term Investment Opportunity

To paulk,

I agree with you. There's no real reason to have dealers on every corner hawking the newest and greatest. There are already a myriad of channels for buyers to look for cars that don't involve dealers, and that trend will continue as people become more and more comfortable with online (and other means) shopping.

Auto Nation's Mike Jackson Interview - Part I

As a followup, Toyota/Scion doubled its showroom space by taking over the building vacated by the Mazda/Kia dealer. Honda, Dodge and Nissan are farther north on Old Auto Row, and won't be moving, to my knowledge.

Auto Nation's Mike Jackson Interview - Part I

Here in Northern NV, the BMW/Volvo/Porsche store is building a new facility along "New Auto Row," across the street from a Mercedes dealership on Indian land and a brand new Acura store. The strip is adjacent to high-value neighborhoods and looks to supplant the old auto row farther north in a declining neighborhood. Other dealerships that have relocated include Kia/Mazda and Mitsubishi/Saab. Lithia Motors just consolidated its two area stores into one, and now carry 10 brands at one location. Litha purchased some old family stores during the last consolidation, and that created their market presence here.

Interestingly enough, no domestic marques are moving south. Lithia has an existing Lincoln/Mercury dealership at the northern border of the New Auto Row, but Ford may very well pull the franchise and move it to the family-owned Ford store instead. If they're thinking, which it doesn't appear is happening.

GM is keeping its Chevy, Pontiac, GMC, Saturn and Hummer stores along the Old Auto Row. Cadillac and Buick aren't in either neighborhood.

Auto Retailers' Ability to Pay Debt - What It Means

The Lithia stores in my market (Northern NV) are taking steps to reduce expenses--combining/el... district level supervision (instead of separate dealership managers, one 'area manager' will now supervise 5 stores), relocating dealerships in poor locations (a store with poor access and low traffic counts is moving to a street with the highest surface traffic counts in town, at cheaper rent) and the like.

How long that takes to show up in interest coverage remains to be seen. But at least management isn't asleep at the switch.