What is Digg?Sponsored by Sony Pictures
Do you believe the 2012 Mayan Prophecy? view!
whowillsurvive2012.com - The Mayan Calendar predicts the end of time: 2012. See the trailer for 2012, opening November 13.
114 Comments
- cyrusuncc, on 10/01/2008, -1/+52My city doesn't need 3 Ford dealerships.
- linuxwarz, on 10/01/2008, -0/+36I saw a hummer pass me today and it seems like it was from a Hummer only dealer. I laughed and thought "good luck with that".
- inactive, on 10/01/2008, -4/+28Front page with 30 diggs? Must have been via go-cart.
- Wulffy, on 10/01/2008, -2/+22There are not only big problems in financial sector. The entire economy is sick. But they will not believe it until more and more will have faced the grim reaper...
- a1cd, on 10/01/2008, -0/+17But its a golden age for repo men... a golden age that will never end
- Shaman760, on 10/01/2008, -1/+17Great. Now all the scumbag car salesmen will be taking jobs elsewhere.....It'll be like "My Cousin Vinny", only different.
- svensko, on 10/01/2008, -0/+16WHERE WILL I BUY MY TAHOE HYBRID THEN?!
- DangerCollie, on 10/01/2008, -1/+16Ah, gee, what a shame. Car dealerships going out of business. What was the bad news again?
It's sort of like when the aliens are attacking in Independence Day. They wiped out L.A.! You bastards! They wiped out Washington, D.C.! Ah, well, maybe they're not so bad after all.
Unfortunately it's not going to stop at car dealerships or this would just mean fewer annoying commercials on local stations. They're like the canaries in the coal mine. Lot of small to medium size businesses need a line of credit to get parts, inventory, and make payroll waiting for accounts to settle. I used to have a line of credit when I owned a software company because some of our big customers would take a long time to pay invoices. We'd draw against our billing. Had we not had that, there would have been times we couldn't have made payroll. It's the difference between accounts receivable and cash that can kill you. - spunalot, on 10/01/2008, -7/+21I feel bad for all the frat boys whose dads owned dealerships. What will they tell the girls now. GET RID OF MIDDLEMEN.
- SillyRabbits, on 10/01/2008, -1/+13Traditional new car dealerships have been on shaky ground for a long time anyway. Many people simply order exactly what they want over the internet, getting the best price, and simply drop by the dealership when it's delivered. Dealerships hate this because they hardly make any money on those. Where dealerships tend to make money is on the people that actually come in not knowing what they really want (and haven't necessarily done much research). Many of those people tend to have the mediocre credit (I don't know if that's a coincidence or not). Anyway, with tightening credit, those most profitable customers can't get loans these days and aren't buying so there's really not enough business to justify keeping the doors open.
- jbenson2, on 10/01/2008, -2/+13Car dealers are paying the price for the unscrupulous tactics used by their sales people.
- inactive, on 10/01/2008, -2/+12Dear Ford, Chevy and GMC
Your vehicles are big, worthless gas-guzzling pieces of *****
Nobody wants them. We have to eat.
Signed,
a 99%-er - drmangrum, on 10/01/2008, -0/+10You answered your own question. Dealerships don't sell cars to make money. They use the Razor Blade model. They make all their money in repairs and maintenance.
- NullD3v, on 10/01/2008, -1/+108 Dealerships a state doesn't seem significant.
- inactive, on 10/01/2008, -0/+7nail head, you hit it.
A) The Internet has pretty much killed the new traditional car dealership
B) No haggle dealerships will gain more business while the slimy dealerships with Monkey Island salesmen will die
C) Used Car dealerships will have to find their niche in various communities
D) The redundant dealerships (eg 5 of the same brand in a 25 mile radius) will die - infinitexx, on 10/01/2008, -2/+9Well the auto industry is a bit more ill than most other aspects of the economy, its not exactly representative.
- YoWhatDaFuxUp, on 10/01/2008, -3/+10kill yourself
- inactive, on 10/01/2008, -6/+12Too perfect not to be true...
I was driving yesterday when I saw a guy driving a hummer with the following:
1) License Plate: Sci Fi 6
2) The Jesus Fish
3) McCain/Palin sticker
4) A sticker saying "marriage = (man bathroom symbol) + (woman bathroom symbol)
5) a 9-11 "We'll never forget" thing..
So, he thinks that Jesus would vote for McCain, destroy the environment, deny people the choice of loving who they choose and refuse to forgive.
Too funny.
p.s. His nasty fat ass wife was wearing a big fur so I guess Jesus would also kill animals for fashion. - jonbruc, on 10/01/2008, -1/+7Amazon.com/cars
- Hetman, on 10/01/2008, -0/+6I agree SillyRabbits. I know people who sell cars. The majority of their profit comes from used cars. That is if it is a used car/ new car dealership. Most salesmen I know hate selling new cars and espiacilly hate internet sells, unless of course it is a very expensive car like a dodge viper. Then they make some money. But on average the dealership and the car lot make less money on new cars than they do selling used cars.
- bffoley, on 10/01/2008, -1/+6I wonder if this means the no-frills mom-and-pop used car shops will thrive (or at least survive) since they've already tightened their belts.
- ncc74656m, on 10/01/2008, -0/+5"Please don't fear the reaper..."
"I NEED MORE COWBELL!!!" - Jasuus, on 10/01/2008, -0/+5God i love my bike.
- ColorBlind, on 10/01/2008, -0/+4R.I.P.
- inactive, on 10/01/2008, -3/+7Thank goodness ive had enough of there non stop frigin commercials...
- inactive, on 10/01/2008, -0/+4You do realize that a car dealership is more than just some owner. There are salespeople, mechanics, the receptionist. The kids that work part time washing and waxing vehicles. The delivery drivers. The guy that stocks the vending machine.
It's symptomatic of a bigger illness. - AndrewMoyer, on 10/01/2008, -1/+5I don't believe my family's car business has felt much of this economic downturn...
Subaru FTW!
Shrewd business practices also FTW. - Intercon, on 10/01/2008, -0/+4Um, 300 million to build a car dealership!? I think maybe you misplaced a zero or two.
- BESTenemy, on 10/01/2008, -1/+5"Ford (F) has an atrocious September. The car company reported total sales of 116,734, down 34 percent versus a year ago. Volvo sales were off over 50%. Overall Ford brand SUV sales dropped 57% to 8,623 units. Sales of the company's flagship F-series pick-ups were down 42% to 32,727. Almost every brand in the Ford corporate line-up lost sales. Even with the government's $25 billion loan guarantee, it is nearly impossible to imagine that Ford can take this kind of beating for another year. Ford's shares were down over 13% to $4.53."
- MarketWatch
This is what consumer recession looks like. GM's next. - inactive, on 10/01/2008, -0/+4Invest what?
- PopcornDave, on 10/01/2008, -2/+6There aren't enough stereo shops and foot lockers to give them all jobs.
I would have said Kinney Shoe stores, but they got melded in to Foot Locker so long ago most people probably wouldn't remember them. - Groggie, on 10/01/2008, -0/+3When aren't car salesmen smiling?
- MrCrumbles, on 10/01/2008, -2/+5Those poor car dealers....[single tear]
- ncc74656m, on 10/01/2008, -0/+3Dude, seriously, biking 200 miles sucks. And it'll take you three days. So no, not ***** das auto. ***** das auto emissions, and the greedy companies that have refused to give us real green alternatives for 50 years longer than necessary.
- psykiv, on 10/01/2008, -0/+3Nope. three hundred million is right.
You haven't seen some of these new gigantic ***** mega dealerships here in south florida, have you?
Take a look at some:
The collection (Ferrari, aston Martin maserati dealer): http://officeinmiami.com/office/4000%20Ponce%20The ... . Go inside. The entire interior is made out of marble.
JM Lexus: http://maps.google.com/maps?q=jm+lexus&ie=UTF8&ll= ...
Williamson Cadillac (That ENTIRE white building is the dealership. Property records show a 100,000 sq ft lot. Now multiply that by the 6 floors it has): http://maps.google.com/maps?hl=en&safe=off&q=willi ... - saisumimen, on 10/01/2008, -2/+5On the plus side, there will be 300-400 less douchebags saying "DUDE, MY DAD LIKE TOTALLY OWNS A DEALERSHIP!"
- boneit, on 10/01/2008, -0/+3And yet they'll still advertise these heaps of junk throughout football sunday as if they're the only vehicles they make.
- Ghostalker, on 10/01/2008, -0/+3If you don't have Billy Fucillio in your area, be glad. Personally I'm waiting for that ***** to go under.
- explnx, on 04/27/2009, -0/+3Every had huge drops in sales, not just ford or the the U.S. automakers:
http://www.autoblog.com/2008/10/01/by-the-numbers- ... - b0rg, on 10/01/2008, -0/+3Automobiles are the biggest "deferrable purchase" people make. For most of the US, it's not possible to *not* own a car, but it is possible to keep your existing car longer, or live on one car instead of two (or three, or four..)
Take a look at the Personal Savings Rate. After years of decline, and a dip below zero that hasn't happened since the great depression, people are socking away money in the bank. Not a lot, but something. They'll take out the credit cards again when they feel better about the economy, but the days of a couple living in a $150k house turning in SUV's every 36 months, each time going further upside down, are over.
And even in the deep, deep red republican areas, the Hummer is becoming a social relic like fur coats: Worn only by the nearly-deceased elderly and 20-somethings who can float a couple payments before it gets repo'd - theutopian, on 10/01/2008, -1/+4Due to the toughening economy, the wife and I have a part time second job cleaning car dealerships at night. We don't expect to be doing it much longer. You can tell how busy a place has been by the amount of trash and dirt the place has. There has not been much trash and the places haven't been very dirty lately. They are also taking their sweet 'ol time paying their vendors, much to the annoyance of my boss.
Makes our job easier, but it also means we may have to look for another part time job soon.
Their prices are crazy low right now because they are getting desperate. Now is the time to get a deal if you can get credit or just pay cash.
Car dealerships don't make much money on new cars anyway. They make it on used cars and through their service departments. - sideburns, on 10/01/2008, -0/+2Who wants a Tahoe Hybrid when you can get the Escalade Hybrid?
www.cadillac.com/escaladehybrid/
How can you go wrong? You're "going green" yet still a total VIP/high roller?
/s - leadingzero, on 10/01/2008, -1/+3Maybe this is why: http://digg.com/business_finance/My_Monthly_Commut ...
My commute price is practically more than the car payment itself... - regeya, on 10/01/2008, -0/+2I doubt it. He is talking about a Toyota dealership. It was likely based on the same plans used on one of our local dealerships. The thing is effin' huge.
No retail space is cheap. The crappy regular size KMart stores run in the 10s of millions, so it wouldn't surprise me to see that price tag on that dealership. - BESTenemy, on 10/01/2008, -0/+2Yes, American and Japanese car makers alike are suffering 30%+ losses. GM's decline of only 9% has given them a greater market share, so they got off the hook this month. As the demand destruction progresses, they'll catch up, as there is nothing fundamentally different to their business plan. They operate through government subsidies just like Ford. If the $700bn economic bailout passes, that'll cause the dollar to devalue further, driving dollar denominated oil price up and making life a lot more difficult for both, the consumers and the car manufacturers.
- secrity, on 10/01/2008, -0/+2Sales tax is a tax on each sale, not the car; it is not double taxation.
- digg1520, on 10/01/2008, -1/+3It's the cars. Imagine if China and Africa had the same percentage of drivers as the US (they are moving in this direction) - even if cars were twice as efficient as todays average car (which hybrids are not), that's not going to work.
- guyincognitoo, on 10/01/2008, -0/+2I second that, he has the most annoying commercials.
- morepowerr, on 10/01/2008, -0/+2They got there like a week back.
- krahzee, on 10/02/2008, -0/+2pjkli is right, the markup on used cars is MUCH higher. It is easy for the consumer to compare a brand new car's price from dealer to dealer. They can compare based on every feature available too.
However, when they go to buy that car and trade in the old one they get FAR less than the resale value of their car. A car they turn in for let's say 4grand in credit, can easily be resold for 7-8 sometimes.
I actually got a car this way once. A friend worked at a dealership and saw a car come in that was valued at 6k. He told the guy the dealership would only offer 3k for it.
The manager confirmed this. He then told the guy that if he wanted, he'd reach out to a friend who was looking and see if I would do better. 3,500 later the car was mine. 60k and 5 years old.
Because it was a harder to sell eco car at the time ( 95 Hyundai Elantra GLS) , the dealership had no issue with this either since it did not have to sit on the lot and they still got the sale on the new car.
For a long time SUV's ( Grand Cherokees always flew out ) and clean pickups had the highest markup. He used to sell a ***** of them a month and get a higher commission on them than on new cars.
-
Show 51 - 100 of 118 discussions
© Digg Inc. 2009
— Content created and posted by Digg users is 