Chevrolet/Chrysler Dealership auction

[Kevin G.]

Today I witnessed a very upseting day for a local dealership. Everything from two locations was auctioned off, at prices that were insulting in my opinion. In a previous thread I posted my interest in one of the 11 lifts that were listed for sale. The lifts went from 1100. to 2300. with capacities from 7,000 lbs. to 12,000 respectively. I didn't win one, but I did purchase the dealers safe, again for a steal.
Several of the owners family members were there,and I could see the distress on there faces. Most of the office equipment sold for less the ten dollars each, computer systems, phones, and office furnture, bids for two dollars were not uncommon.
It was not fun at all to see! Surely this story will be heard over and over in the near future. Sad day

Kevin

[Greg H.]

Re: Chevrolet/Chrysler Dealership auction

Just as well you didn't buy the lift Kevin. I'd be visiting way more often!
Greg

[Dick W.]

Re: Chevrolet/Chrysler Dealership auction

Just a shame that I did not conduct the auction. So far no dealers in my immediate area have gotten the axe, or are admitting it.

Unless the lifts were worn out, the prices are pretty much where the market is. Assuming the lifts are two post brand name the 12k lift sells for somewhere $5,000-5,500 new. The 7k lifts sell for about $3,300-3,500 new

[Steven S.]

Re: Chevrolet/Chrysler Dealership auction

Agreed, those lift prices were typical. Thats not to say everything else wasn't undervalued.

[Kevin G.]

Re: Chevrolet/Chrysler Dealership auction

Just as well you didn't buy the lift Kevin. I'd be visiting way more often!
Greg

Greg, You're more then welcome any time any tool.................

Just a shame that I did not conduct the auction. So far no dealers in my immediate area have gotten the axe, or are admitting it.

Unless the lifts were worn out, the prices are pretty much where the market is. Assuming the lifts are two post brand name the 12k lift sells for somewhere $5,000-5,500 new. The 7k lifts sell for about $3,300-3,500 new

Dick, The auctioneer really did a great job,(two weeks before did an Olds dealership) but the attendees were just not willing to pay decent numbers. As far as the condition of the lifts they were in good shape and averaged in age from 1987 to 2003. Yes, they were two posts, brand name. I'll wait for the next auction nearby, surely it will be soon.

Here's a link from 6/09 on GM closings any near you?

http://www.edmunds.com/industry-car-news/GM-dealerships-closing.html?mktcat=enabler&AID=10364102&PID=3196492&kw=N&synpartner=edmunds&mktid=cj260233

[Kevin G.]

Re: Chevrolet/Chrysler Dealership auction

Agreed, those lift prices were typical. Thats not to say everything else wasn't undervalued.

A 65,000 frame machine went for 19,000, in almost new condition.

[Dick W.]

Re: Chevrolet/Chrysler Dealership auction

Kevin, that is a partial list. There were 1,149 cancellation notices sent out in the first mailings. There were another 450 or so sent out since then, plus the "participation letter" that spelled out what the remaining dealers would have to do so as to maintain their franchises. I have not gotten my hands on the full list, but I did read a "participation letter". The letter spelled out what the dealer will have to do in regards to 1. Customer Service Index; 2.Facilities upgrades; 3.Sales goals to be met; and 4.Captialization. GM is in the drivers seat while in bankruptcy. Dealer franchise protection is pretty much nil until they come out of bankruptcy, and the requirements spelled out prior to that time will have to be met in the future.

I do not believe that the cancellations are over. I have read part of the Cadillac marketing plan and it will leave the small dealers on the sidelines. The average Caddy dealer sells about 115 units a year while MB is over 700, and Lexus in about 1,125 or so. The new plan has goals of raising the volume to somewhere near MB or Lexus levels.

I feel sorry for a lot of the dealers. Some of them I have no sympathy for. They are the ones that bled the system for all it's worth, poor service, lousy facilities, etc. Gonna be interesting in the next six months.