[gkr778]

So you are agreeing that a small town can't support the current dealership model?

They still do, so; no- I don't agree.

Some small-town new car dealerships are noted for excellent customer service and attract not only locals, but consumers from larger metros including out of state. A good example is Holly Chevrolet in the Arkansas Delta. It's owned by Dr. Lannie Lancaster, who also operates a veterinary clinic nearby.

 

[Captain Chaos]

You had better stop InCogKneeToe, your post is making too much sense.

 

[InCogKneeToe]

You had better stop InCogKneeToe, your post is making too much sense.

Ok, I will Dumb it Down from now on. Thanks for the warning though.

 

[pontiacgt02]

"Overall, Buick said it reduced its dealer count by 47% after offering the buyout program in 2022 when it had 2,000 U.S. dealers."

Impressive number. Looks like we'll get quite a few less imported Buick's incoming.

Nearly half of Buick dealers accept GM's buyout offer

Overall, Buick said it reduced its dealer count by 47% after offering the buyout program in 2022 when it had 2,000 U.S. dealers.

www.detroitnews.com

You won't get less of them. GM already actually has too many dealerships. Now the dealers who are in business can get more cars to sell. Buick has nice vehicles just GM is not utilizing the brand the way it should be. They need a sedan and badly. They could make a new Regal off the new Malibu and maybe it might happen since Ev's are not going to be the big rush many thought it was going to be.

 

[BlackGTP]

They still do, so; no- I don't agree.

View attachment 71395

I'm considering small town dealers as in these Buick dealers that are closing that moved around 40 units a year. Dealers as we know them aren't viable - you can't make enough $$ on 40 sales a year and exactly why they are taking the buyout. If the market can support bigger volumes then of course they can do well. But not "east of nowhere population 2,000".

 

[09W]

^ Your take. While it may well be easy to assume 'can't make enough money on 40 sales' - that's supposition; not every dealer needs to be a millionaire, and many don't WANT the overhead/stress/complexity of a "modern dealership model" (whatever that is). Just like not everyone wants to drive a top-tier mega-buck luxury vehicle or live in a 10,000 square foot home. And pushing dealers to create area monopolies doesn't benefit the consumer in any way.

Buick dealers taking the buyout existed right up til today- obviously fine with their business model. Buick dealers opting out are not doing so because they can't survive as is; you are wrong on the point. Imagine a sudden one-time fee to your household of 10 times your annual income to stay in said house.

 

[gm4life08]

The timeline for small Chevy dealers must be longer. They just expanded their lot. Mostly Trailblazers and trucks. Most other area dealers either have had a spotty service reputation or were very picky about test driving (a Camaro in winter). I do fear GM's policies since the bankruptcy cater to bigger worse dealers.

Of course it does cater to big impersonal dealers. Sad. Sad. Sad.

 

[gm4life08]

I'm assuming the Buick buyout $$ are pretty decent. I bet the buyout $$ will cover the cost of the BEV conversion for the remaining Chevy dealer.

I was not given a number at my small town Chevrolet dealer but it was enough for them to say let it go. They are using the not insignificant amount of money to invest in new equipment. Likely saving some for the larger EV transition reading between the lines. Fifth generation just started too at the store.

Sad thing was they were always a Buick/Pontiac dealer since they opened. (Approx 110 years ago) They wanted to keep Buick but it didn’t make financial sense. For the limited sales ie a couple a month… The idea that every car dealer needs to be a multi-millionaire with a mansion is absurd. Both the owners of both my small town Chevrolet and GMC dealers live in lovely but ‘normal’ houses. The more small dealers the better. Both make money on service, they do a heck of a service business.

The fact is GM doesn’t have enough of a line-up for Buick without a sedan. The Envista is a HUGE help though.

 

[gm4life08]

So you are agreeing that a small town can't support the current dealership model?

The few around me I know do make it work. They have off the charts CSI scores with GM to boot. The small town dealers likely account when you add them up to 20 percent of GMs sales or something. Wanting them gone is suicidal. Think I would own all GM vehicles then? Not likely.

 

[gm4life08]

And how does this reduced Buick footprint, benefit GM, the Buick brand or (outside of the big check) the (stand alone) GMC Dealers?

I don’t know why they did it honestly. I get Cadillac but not Buick. Let the non-EV Buick dealer just sell non-EV Buicks.

The only reason I can think is Buick is a low ATP/margin brand. I imagine killing even small Chevrolet / GMC stores due to the high margins and profit is a no go for GM. Profit margins on full-size 1/2 ton to 1 ton trucks and full-size SUVs are generous.

 

[gm4life08]

^ Your take. While it may well be easy to assume 'can't make enough money on 40 sales' - that's supposition; not every dealer needs to be a millionaire, and many don't WANT the overhead/stress/complexity of a "modern dealership model" (whatever that is). Just like not everyone wants to drive a top-tier mega-buck luxury vehicle or live in a 10,000 square foot home. And pushing dealers to create area monopolies doesn't benefit the consumer in any way.

Buick dealers taking the buyout existed right up til today- obviously fine with their business model. Buick dealers opting out are not doing so because they can't survive as is; you are wrong on the point. Imagine a sudden one-time fee to your household of 10 times your annual income to stay in said house.

Lots of truth in this statement. Purchased from large and small dealers over the years. Still have so many GM vehicles due to the small Chevy and GMC stores service in neighboring small towns. Buying from one of those two stores, I am not double checking numbers… Watching for someone to put the screws to me. Listening to 90 minutes of after the sale service presentation on worthless non-GM warranties. Worthless vin etching, nitrogen tires, warranties on wheels/tires. Service packages etc. Heard it all.

In fact I chose to leave my small metro area to buy cars in towns that have under 10,000 people because I am treated like a human. Not a number. I also do all my service with them. Competition is a good thing. Funny thing is excluding year end close outs or special promos… The difference to trade with the little dealers is usually the same or even less. (They don’t have the massive overhead, gotta pay for the fancy soda machine in the customer lounge somehow)

 

[BlackGTP]

The few around me I know do make it work. They have off the charts CSI scores with GM to boot. The small town dealers likely account when you add them up to 20 percent of GMs sales or something. Wanting them gone is suicidal. Think I would own all GM vehicles then? Not likely.

I think there is a difference with a small-town dealer selling a couple hundred units a year and a really small-town dealer selling 40 units a year. To me the fact that so many are jumping at the buyout offer tells me they aren't making much money off those 40 sales a year, meaning they aren't successful. They might be great for the consumer, very personal service, etc. but in the end a business has to make money. I can't imagine a dealer makes more than $1,000 profit AFTER expenses, so selling 40 units a year is $40k max.

Or is everyone telling me these are very profitable, but then why are they selling?

 

[gm4life08]

I think there is a difference with a small-town dealer selling a couple hundred units a year and a really small-town dealer selling 40 units a year. To me the fact that so many are jumping at the buyout offer tells me they aren't making much money off those 40 sales a year, meaning they aren't successful. They might be great for the consumer, very personal service, etc. but in the end a business has to make money. I can't imagine a dealer makes more than $1,000 profit AFTER expenses, so selling 40 units a year is $40k max.

Or is everyone telling me these are very profitable, but then why are they selling?

Your example of 40 units, they likely wouldn’t be in business today with GM. I know a very very small Chevrolet dealer who was like that they didn’t make it past 2009. People are jumping at it if they have Chevrolet or GMC that drives 90 percent plus of the business.

For example Ray Buick near Midway in Chicago, Gerber Buick in Saginaw MI and Liberty Buick in Peoria AZ didn’t jump on it. All standalone Buick stores still. I likely can find a few more. Used to know several standalone GMC stores but that number has gone from 25 or so to over 1,000.

Edit one more Buick only store… Roe Buick in Grand Island, Nebraska.

 

[09W]

...they were always a Buick/Pontiac dealer since they opened. (Approx 110 years ago)

Dealer name / city/state, plz.

 

[gm4life08]

Dealer name / city/state, plz.

Tills Garage, Bellevue, IA since 1914. Why do you ask? Now ‘just’ a Chevrolet dealer.

 

[BlackGTP]

Your example of 40 units, they likely wouldn’t be in business today with GM. I know a very very small Chevrolet dealer who was like that they didn’t make it past 2009. People are jumping at it if they have Chevrolet or GMC that drives 90 percent plus of the business.

For example Ray Buick near Midway in Chicago, Gerber Buick in Saginaw MI and Liberty Buick in Peoria AZ didn’t jump on it. All standalone Buick stores still. I likely can find a few more. Used to know several standalone GMC stores but that number has gone from 25 or so to over 1,000.

The 40 units is what the math works out to for the provided statistics - see my earlier posts in the thread.

 

[09W]

Tills Garage, Bellevue, IA since 1914. Why do you ask? Now ‘just’ a Chevrolet dealer.

I'm the compiler on the historical Pontiac dealer database. Most comprehensive list in existence.
I had Till's listed [132 North 2nd St], but always looking for info to bookend a dealer's timeline.

Nothing vintage turned up in an online search for TIll's- would like a period pic when a Pontiac dealer.

 

[MisterMe]

I was not given a number at my small town Chevrolet dealer but it was enough for them to say let it go. They are using the not insignificant amount of money to invest in new equipment. Likely saving some for the larger EV transition reading between the lines. Fifth generation just started too at the store.

Sad thing was they were always a Buick/Pontiac dealer since they opened. (Approx 110 years ago) They wanted to keep Buick but it didn’t make financial sense. For the limited sales ie a couple a month… The idea that every car dealer needs to be a multi-millionaire with a mansion is absurd. Both the owners of both my small town Chevrolet and GMC dealers live in lovely but ‘normal’ houses. The more small dealers the better. Both make money on service, they do a heck of a service business.

The fact is GM doesn’t have enough of a line-up for Buick without a sedan. The Envista is a HUGE help though.

You hit the nail on the head. There may be other nails, but service is a huge nail. Dealership garages used to earn their keep by repair manufacturing defects during dealer prep. The Japanese competition and its reputation for few defects forced North American manufacturers to follow suite. Dealership garages lost a massive fraction of their business. This is one reason that GM started the promotion of providing a Mr. Goodwrench oil change in 30 minutes or it's free. EVs have substantially fewer moving parts to go awry and they don't have oil pans. Dealership garages will have every little service.

A good preview of this future is Tesla today. Tesla owners may need collision work, replacements for worn accessories such as tires and windshield wipers, and software updates and upgrades.

 

[09W]

 

[09W]