A View From Inside The Auto Dealership

Mike Gaiser saw the first signs that business at his California car dealership was slipping as early as December 2006, this was before the country entered a recession and the nation’s housing industry collapse were apparent.

The California state budget still has not been passed, which has made selling vehicles to the state come to a grinding halt. Gaiser is a Fleet Manager at a Southern California Ford Dealership where most of his sales come from Government and small businesses.

“I Get up every morning keeping a positive attitude, thinking it will get better someone has to fix that light at the end of the tunnel, and it’s been like this for two years,”

As automobile manufacturers in Detroit struggle to salvage their businesses and lawmakers in Washington, D.C., work to bail out the industry, car dealers all over the U.S. are living the reality of the auto industry’s overwhelming change in business.

Inside the dealership the hours seem longer, the manager responsibilities larger, the pressure and high stress are still there but the profits are smaller. Most dealerships have had to cut back on personnel, inventory, and utilities. Many people who have spent their entire career in the auto business are contemplating a career change, and some of those people are over 45.

“I have seen a lot of dealerships close down after being in business for a many years, but I look at it like this: when we get out of this recession the strong dealerships will still be around, there will just be fewer standing which will eventually make our business better.” Gaiser said.

Better times don't appear to be around the corner. At its annual convention this week in New Orleans, the National Automobile Dealers Association forecast a tough 2009 but said conditions should improve for car dealers in 2010. We will have to see.

Just because car dealerships are having a hard time doesn’t mean you have to in buying a car! Go to Ultimate Auto Advisor to get tips and facts.