NADA Predicts 700 Dealers To Go Out Of Business In 2008

The credit crisis — which has made lenders reluctant to finance dealerships' vehicle inventories — is helping force hundreds of dealers out of business.

The National Automobile Dealers Association projects that as many as 700 dealerships could close this year, out of 21,461 as of Jan. 1. The last decline of this magnitude occurred during the recession of the early 1990s.
 

Dealers have fallen prey to poor sales, high gasoline prices and ruinous price wars. But a lack of credit is a big factor in this year's shakeout, says NADA chief economist Paul Taylor. "Credit conditions need to be improved somehow, and quickly," he says.

In recent weeks, each of the Detroit 3's captives — GMAC Financial Services, Ford Credit and Chrysler Financial — has raised the interest rates it charges dealers for inventory financing by about half a percentage point.

350zdon17 - 10/6/2008 3:24:55 PM

+2 Boost

Only the strong will survive...Owners with the deep pockets will be able to hang around, the rest is toast...

Agent004 - 10/6/2008 3:26:57 PM

+1 Boost

The strong and the good...

www.dealerrater.com

sector - 10/6/2008 3:37:44 PM

-1 Boost

This not good news, for some BMW dealers there's a month wait time for service appointments :(

QuantumMatrix - 10/6/2008 3:48:11 PM

+2 Boost

You are such a lying douchebag auto001 I drive all over the SouthEast and have never been to a BMW dealership where the wait time for "Service" was a month.

Get your facts straight before you start spewing your hatred of BMW and spewing outright LIES!!

sector - 10/6/2008 5:09:52 PM

-4 Boost

Star, I though you had a AMG C63..

QuantumMatrix - 10/6/2008 6:00:48 PM

+6 Boost

Not Star here douchebag auto001..

I drive a 2008 BMW 335i coupe..

w209w114 - 10/6/2008 3:44:32 PM

+1 Boost

Dont be so sure. I dont expect it to be this severe. Oil just settled at $87 a barrel and will continue its downward spiral towards the $50-60 dollar range. This will be somethin VERY positive for automakers who despite the economic conditions, have had to deal with high gas prices.

Im on the optimistic side as far as the auto industry is concerned. We should be seeing a loss of 300-400 dealerships nationwide.

QuantumMatrix - 10/6/2008 6:06:46 PM

+5 Boost

2012,

You will quickly learn that auto001 is full of CRAP..

He does nothing but spew lies all over this site about BMW.

He has a really bad case of "BMW Envy"...

QuantumMatrix - 10/7/2008 4:21:51 PM

+3 Boost

Add StarSearch to the list of liars too..

I think he is auto001 and teknik.. Talks to himself must be a multiple personality disorder.

QuantumMatrix - 10/6/2008 10:52:46 PM

+5 Boost

Not all of us bimmerfan25..

I never voted for Bush and hate McCain and the Redneck Hillbilly Palin.

Please don't judge us all by our President and the Republican stooges.

I'm not an idiot and know many millions of us that are not too.

Karma is a Bitch and it might come back to bite you and your country in the ass one day too, based on your comments in which you generalize all Americans into one category.

350zdon17 - 10/7/2008 10:52:48 AM

+1 Boost

Very sad but true =/...OBAMA 08...