What actually happens to excess dealerships?

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tim marburger had a chrysler/dodge dealership here in bristol. it also sold volvo (of all things right across the street). that is where i bought my wife's volvo. since then, the volvo building was closed and their vehicles was moved across the street to the chrysler building. then the volvo moved across town to a dealer who sells ford and hyundai. then the volvos and the hyundais switched buildings. is this game of automotive musical chairs nuts, or what?

the marburger chrysler dealership looks like it is closed, or nearly closed, as there are just a handufl of cars there. it is just a strange thing. far fewer vehicles on a lot that can handle much more vehicles. and the building seems practially empty, at least when viewed from the road. since it is next to a k-mart which also has a parking lot way too large for the number of cars there, it feels strange in that area. like somebody dropped a neturon bomb, or something. the buildings are still there, just no people walking around.

this is by no means a large metropolitan area. bristol and neighboring cities kingsport and johnson city have all the domestic, japanese, and german automakers. the only ones missing are infiniti and audi.
 
Here is what I predict. By 2012 or 2015, GM will be selling cars. Nice fancy, shiny, colorful cars.

All made in China. Can you spell "rebaged"?
 
I dont remember the name of the dealership. But there is one around here where the owner had a sudden heart attack and in the aftermath of his death the company went bankrupt. I dont remember if the Feds were involved, but will have to ask around.

I DO know that the HUGE dealership is now a big Church and private school. Lots of open office space to remodel into class rooms, and this place even has a huge courtyard.

I imagine alot of these places will be gutted, rezoned, and turned into something else. Their real estate value is to much to just let acres ane acres sit empty.

But who knows? All the financial experts said this "Was never possible" and "There are too many barriers in place for things to get out of control." Nobody knows anything anymore.
 
Originally Posted By: crw
Yeah, I could see driving along the El Camino Real in Silicon Valley, where there's a big dealer on every block. Some of that will need to contract. But there is certainly a market for that property.


Santa Clara county subsidize/zone the area so that they can get lots of sales tax for the location. They wouldn't let the area to be used for anything but retail, preferably dealerships. It is common to see many out of towner here to buy cars.
 
For years, Scott SAAB has been a dusty old abandoned building, just taking up space.

Some dealerships have their service bays bought by independent auto repair companies, and then the rest of the building gets sold to someone else. That is common in Bradenton, Fl.

Other times, the dealer lot becomes another place where cheap used cars get sold to people with low credit scores.
 
Originally Posted By: John_K
Quote:
All made in China. Can you spell "rebaged"?


Yes, rebadged. Sorry, had to make the joke.

John


Yeah, I was reading the China comment and was trying to figure out if lovecom was trying to make a funny or what. I guess the joke's on him 'cause he's too dumb to spell rebadged.
 
Originally Posted By: John_K
Quote:
All made in China. Can you spell "rebaged"?


Yes, rebadged. Sorry, had to make the joke.

John


I thought he was talking about rebagging them.
 
Originally Posted By: bdcardinal
Originally Posted By: IndyIan
I doubt many dealer buy cars up front.


thats how dealers get the cars to sell.



The last time I heard ..they didn't pay for them until the time of sale. They cost them X% above prime after 60 days or whatever. That was a few years ago ..but that would be a WHOLE lot of capital to lay out just to vend high ticket items like this.

When the Jeep/Dodge/Chrysler dealer closed up, he didn't have a fire sale. DC picked up the cars. A FULL LOT of cars.
 
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