During 2008, at least 600 new car dealers nationwide will shut their doors for good, the National Automobile Dealers Association says. With new car sales plummeting, dealerships just can’t cope and are forced to close down.
"Up to 80% will be domestics, because they’ve lost more than their share of sales,” says Paul Taylor, chief economist for the NADA. “Once closed, it’s difficult to reopen."
Experts say up to 3,800 dealerships will need to close before the remaining dealerships are profitable. Cheaper used cars are luring buyers away from new vehicles, according to cars.com.
“There are more dealerships out there than there are cars to sell, which hardly justifies that many staying in business," says Taylor.
Closed dealerships will be a common sight soon.
Image via cars.com