dunnojack

are they repo'd and auctioned?

i wonder if i can get an insane deal at the chevy dealers that are closing...

i could use a $5000 4banger beater, and a heavy duty truck.

tex2670

The dealership owns those cars, and finances them. They have to do what they can to recoup that $$.

dunnojack

yeah, i know they borrowed a lot of money to buy all those cars.

but if they're given a timeline to shutdown, they're not gonna be able to sell all the cars in such a short time without heavy discounts.

and in the end, there are several models left over that no one wants because they have odd option combos and colors

LexFather

It depends on who owns them. Some might be owned by the company, GM may allocate them elsewhere to another dealership. Bank owned and dealership owned would probably auction them.

passnu2

iTrader: (33)

not going to happen. The MFG owns the cars. If a dealer is shut down they cant sell them as new cars. The MFG will allocate them to other dealers. Pretty rare a Dealer owns the cars that sit on the lot these days unless its a used car or a service loaner. This is why most will push incentives to clear the lots for new cars. That IMO is your best bet to get a better deal.

bitkahuna

iTrader: (20)

sometimes they're not owned by either the mfr or the dealer, but by a 'floor planning' or other financing company that owns the vehicles and charges the dealers a per month fee for each vehicle, incenting the dealer to sell the cars. in this case when the dealer closes the floor planning company will try to place them at other dealers, or sell them at auction.

nthach

bingo.

There was a Toyota dealer that got shuttered down here, Nissan Finance floorplanned the cars and financed the dealership. Banks are also in the business of floorplanning - mine is floorpanned by Bank of America. That's why dealerships try to unload inventory within 30 days - or they will pay floorplan fees.

bitkahuna

iTrader: (20)

thanks nthach.

which means folks, yes, you guessed it, closing dealers will be another black eye on the banks and other financial companies, causing more problems...

habeeb89

iTrader: (3)

Usually only small dealerships (used car only) actually finance and own the cars, the manufacturer usually owns the vehicles on the lot at new car dealerships...

Faymester

Darn, that doesn't sound like there will be a heavilly discounted Vette or CTS-V I can just go snag ... *hurrumph*

herbvdh

At one time we had a Toyota dealer that the owner was taking the money for himself not paying Toyota for the cars. Toyota came in one day closed the dealership and removed all vehicles on to car carriers. Shortly after this building became Honda and a Toyota re-opened just north of there with a joint Volkswagen/Toyota dealer now they recently seperated as VW built on property next to Toyota. The only Jeep dealer we had suddenly has no cars left at all the lot had about three or four Jeeps on it they are closed. This dealer bought an old diner and was going to build a huge dealership there and move soon from there old gas station.

bitkahuna

iTrader: (20)

reminds me of the movie 'Fargo'

okey dokey then...

nthach

Not always true - the Honda dealer I work for is floorplanned by Bank of America, and we have a cornucopia of lenders we work with for financing. I was looking over a couple of factory invoices and you'll be surprised at how much cross-financing/floorplanning happens. I saw Ford Motor Credit on one, another was Honda Finance, and the third one was Wells Fargo.