Some information on car dealer closings
There has been a lot of coverage in the news about the bankruptcies of major American automakers. One of the issues is auto dealers losing their franchise from GM or Chrysler as the two big auto companies attempt to restructure. The corporate websites do have some information on the companies' plans to restructure. Here are some additional pieces of information about the auto dealerships which may be of interest.
- The official website of the National Automobile Dealers Association (NADA). According to the website, NADA was "founded in 1917, represents more than 19,700 new car and truck dealers, both domestic and international, with more than 43,000 separate franchises." NADA provides lobbying for the automobile dealer industry as well as research for the industry and various programs for dealers. They do offer membership for auto dealers, but the site does have a good wealth of information free to the public.
- Intellichoice offers a small article on "How does a dealership work?" The article provides a small overview of how exactly does an auto dealership work from the moment you enter the lot to how dealer financing works. You get a simple explanation of what each department in a dealership does. This comes from the Intellichoice website, which is a consumer resource for researching cars. If you are considering a car purchase, you can research a vehicle on this site. The site also features articles on topics related to car buying such as a survey of hybrid vehicles and information on car financing and insurance.
- The Atlanta Journal-Constitution featured an article recently with a good Q&A on why the car companies need to cut ties with dealerships. The article's title is "Meltdown 101: Why GM, Chrysler Want Fewer Dealers" by Bree Fowler. Note that newspaper links to specific articles can expire. If you try the link, and it does not work, let us know. We can often get the article from one of our electronic databases.
- And if you are buying a car, but you are worried that your dealership may be closing, Consumer Reports has some advice. The post's title is "What you need to know about car dealership closures." Unlike the newspaper article above, this article deals with what the consumer needs to keep in mind when buying a car (or getting service for a car) from a dealership. Consumer Reports also has a fairly comprehensive section on their website with good information on the "Chrysler and GM Restructuring: How it affects you." There are some very good FAQ's here for the public. Overall, although the Consumer Reports magazine is not freely available in the website, the website still has a lot of free information for the public.