some dealers here that will no longer be under the chrysler umbrella aren't closing, just moving to used car sales
Yes, used car sales for sure! A friend of mine was one of Canada's top Chrysler salesmen 10 years ago. He just up and quit one day, giving up a six figure income, and opened a used car lot. He and his lot look the part of the stereotypical Used Car Salesman".
He explained to me though, that he is making many times more money now than he ever did as a new car salesman. A new car dealership has to take and finance a certain amount of stock from a manufacturer only to make a couple of grand per car. They have to maintain a service and parts department, do warrantee work, and provide all the stuff necessary to provide a 'pleasant" buying experience!
Used cars on the other hand can be picked up at auction for as little as $500 dollars and after a fast cleanup will sell for $1500. The sales lot and building can be minimal, service and parts non-existant, stock of cars only what can be handled financially, guarantee is 15 days or 15 miles (whichever is less) and everyone who sets foot on the lot knows what experience they can expect!
Yep, used sales makes $ense.
On a side note, I had always assumed that you could get a better deal on a car that had been on a lot for a long time because the dealer would want to move it to recover his investment. It turns out that a car that has just arrived can be a better deal because the dealer has very little invested in that car as opposed to the one that he has been financing for months. Fast turnover = more profit
