To the Editor:
With 41 years in the automobile business and as a general sales manager of three stores that were bankrupt when we (private owners) took over, I think I qualify to voice an opinion about minority-operated car dealerships.
All three of the aforementioned stores were in small towns.
At first, we had to buy vehicles from other stores and paid 3 percent over the normal dealer cost, and at one point the floorplan was double digits. No money for trade-ins.
All three of those stores are highly profitable today and are operated by the same owners.
Why would anyone think that a manufacturer is going to GIVE (and that is the exact term for this type of franchise) a thriving business to someone who normally wouldn't have the credentials on their own?
Ford calls it Dealer Development, and to be very conservative, at least 30 percent of them fail.
The people who are put in charge of that type of franchise are not owners. After a period of time, they may buy in if they prove successful.
Chandler Lee, a former GM dealer, is right when he said, "They wouldn't be for sale if they weren't problem stores."