Oct 12, 2008 6:46 pm US/Eastern
Economic Crisis Impacting Car Dealerships
Jim Smith, WBZ Reporter
RAYNHAM (WBZ) ―
As you might expect, the economic crisis is having a big impact on the purchase of big ticket items. And that's especially true for automobile sales.
The Auto Mile in Raynham has been the place to go for car buyers in southeastern Massachusetts for years.
But there's something else here besides cars – vacancy signs. Tough times have forced some dealerships to close and others to consolidate.
The Chrysler dealership moved up the street and now shares space with a Dodge and Jeep dealer, but the sales manager says combining the dealerships makes good economic sense. "We just find that we see a little reluctance for customers to buy… So we have to be even nicer to them… Do all we can to get them to purchase a car," said Peter Cohen of Chrysler, Jeep and Dodge.
The tough economy can cut both ways. Customers are not willing to buy, but dealerships are also eager – and that can be the best time to make a deal.
WBZ's Economic Resource Guide That's just what Amy and Paul Miller did. They came to Central Chrysler Jeep and Dodge and bought an SUV. "We needed to get a vehicle," said Amy. "I did think about the economy, about my job, but we took the plunge."
Raynham's Auto Mile will survive. One Toyota dealership sold 200 cars last month and a nearby Ford and Mazda dealership spent millions on improvements.
Customers like Paul Miller still have a trace of consumer confidence. "If I was closer to retirement, I'd be concerned, but the economy will come back,"
In the meantime, there are deals to be had.
Car sales nationally are taking a hit. The latest figures show sales may drop by two million vehicles this year compared to last.
(© MMIX, CBS Broadcasting Inc. All Rights Reserved.)
Click to enlarge
Stumble It!
