Dealerships Closing - And So It Begins

Neils

Neils

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(Was not sure if I should post this here or the General section, mostly know some the C8 guys on here)….

Just read this news, here in Quebec a dealership group is closing not 1, not 2 but 3 dealerships due to lack of inventory and rising internet rates, affecting 65 staff.

The better written article is in French but found one similar in English …

Many other articles online stating interest rates on the rise and recession forcing people to rethink their spending (tough pill to swallow for those of us waiting to spend $100k plus on a C8 or Z06)

www.spamchronicles.com

Méga Center Park Avenue Lays Off 65 Employees And Closes La Prairie, Laval And Sainte-Julie

Mega Center Park Avenue laid off more than 65 employees Thursday as it closed three Mega Center Park Avenue stores due to a lack of new vehicles, sources said
www.spamchronicles.com www.spamchronicles.com

 
Neils said:
(Was not sure if I should post this here or the General section, mostly know some the C8 guys on here)….

Just read this news, here in Quebec a dealership group is closing not 1, not 2 but 3 dealerships due to lack of inventory and rising internet rates, affecting 65 staff.

The better written article is in French but found one similar in English …

Many other articles online stating interest rates on the rise and recession forcing people to rethink their spending (tough pill to swallow for those of us waiting to spend $100k plus on a C8 or Z06)

www.spamchronicles.com

Méga Center Park Avenue Lays Off 65 Employees And Closes La Prairie, Laval And Sainte-Julie

Mega Center Park Avenue laid off more than 65 employees Thursday as it closed three Mega Center Park Avenue stores due to a lack of new vehicles, sources said
www.spamchronicles.com www.spamchronicles.com

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I looked at the article but did not see what brand/manufacturer those 3 dealers sold?
 
harshadt said:
I’m not sure if it’s true, bur I remember hearing somewhere that dealerships make most of their money from the garage/repairs side versus the sales (new or used) side. Perhaps a forum member knows whether there’s any truth to that.
Click to expand...
Other than the dealers who go to the bank with tens of thousands in over MSRP free cash for many new sports car, luxury cars and pickup trucks, it is definitely true. Parts and service departments and the finance departments (including extended warranties) are the major dealership bread winners. Most dealers are open to telling you that if you ask.
 
So did a little bit more digging, similar to other "groups" of car dealerships (Ciocca in the US come to mind), we have Groupe Park Avenue here in Quebec, which represents the brands Audi, BMW, Honda, Infiniti, Jaguar, Land Rover, Lexus, Mercedes, Mini, Toyota, Volkswagen, Volvo as well as Harley Davidson. They also have this Mega Centre for the entire "group" which is their used car dealerships (3 of them). I would imagine trade-ins from each of the dealerships would typically go here. From what I understand of the problem, the dealerships are lacking inventory on both sides, both new and used vehicles, and I can only imagine the used vehicles are fetching prices right now that are close to the cost of a new one (for those patient enough to wait for a new one).

So my guess is with withering inventory available for this Mega Centre from each of the dealers (who need to now keep those used cars to have a decent offering), not enough business to keep all 3 of the used car dealerships open in the province. Supply and demand problem plus parts shortage plus plant shutdowns does not help the cause. Add to that a fragile economy (past, present, and future), which will make people think twice about purchasing more expensive items like a pricey used or newer car, and that adds to the overall strain at some of the dealerships.
 
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