Car dealerships the new endangered species?
Posted
Oct 01 2008, 02:52 PM
by
Kim Peterson
Rating:
One in five U.S. car dealerships could bite the dust in the next year, according to a study out Wednesday. Sales are down. Credit is harder to come by, and even the people who have good credit are leery of making big car purchases.
Potential investors are staying away, and no wonder. Car sales in this country have declined for 11 months straight -- the longest slide in 17 years, according to Bloomberg.
And September was a particularly ugly month. Carmakers are reporting results for the month, with negatives across the board. Ford's U.S. sales fell 34% from the month before, and Toyota was down 32%. GM's drop was 16% and even Hyundai saw a 25% drop.
The biggest Chevy dealer in the world shut down its dealerships last week, and others are sure to follow. Once upon a time, these dealerships could have received loans to carry them through the bad times. But nowadays, a loan to a car dealership is about as scarce as, well, a customer walking through that dealership.
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