Why Are Car Dealers Closing Their Doors?
If you have been watching the news you must realize that a lot of car dealers are going the way of the Dodo. This is due in large part to the state of the economy, but it is also so to decades of poor management and overpriced workers. The effects of this economic disaster have trickled down to the auto dealers who are, often times, being forced to close their doors. According to Boston.com there are several local dealerships that have gone out of business following the national trend:
“South Shore Buick is just one of more than 40 new-car dealerships in the state that have gone out of business this year, according to the Massachusetts State Automobile Dealers Association. There are now 462, down from 533 at the beginning of 2007. Across the country, the National Automobile Dealers Association estimates, there will be 900 fewer dealerships this year than last, and a net loss of 1,100 in 2009.”
This reminds me of Barack Obama’s line about how trickle down economics hasn’t worked and simply caused “pain to trickle up.” There could be no clearer indication that trickle down economics is real then this very story and a million others just like it playing out all across the country. We see money disappear from one area and then watch as it moves over others like a wave. Will the bailout save the big three US auto makers? Perhaps, but it already is too late for many car dealerships across the country.
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Have the analysts considered how the record yearly sales growth of 2002 through 2005 has impacted recent sales? No business can continue to grow as we have without going back to an average year which was coming anyway and now it is here along with the fallout of OF THE BANKS AND DISHONEST INVESTMENT HOUSES.
James,
I agree, and consumer spending (which was basically all borrowed money) was really fueling the economy “(no pun intended.) Now that credit has dried up…poof! No more car sales. There was no way we could have kept up the pace you mentioned.