Floor traffic picks up as shoppers look for bargains


Actually, 90% of terminated dealers will not survive this. Many dealers borrowed hundreds of thousands of dollars, if not millions, to purchase their franchises - which won't be theirs after termination. They will still owe this money and will determine quickly that the economics of running a used car lot do not support paying interest on hundreds of thousands or millions borrowed to purchase 'blue sky.' These guys will file bankruptcy. Some of the others, like myself, will determine shortly after termination that their 25,000 square foot building and 15 acre lot are ill-suited as a used car lot - if for none other than the fact that the property taxes and utilities cost about 10 times the norm for a used car lot. The average franchise dealer will have to sell twice the number of used vehicles that they sold in their best month ever just to break even on their fixed costs. Few of us are that good at this business, regardless of our success as franchise dealers.



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