Will you car dealer close its doors on you?

A quick peak at the headlines will let new car shoppers know there are some major changes coming; and those changes are right around the proverbial bend.

In light of the Federal Government beginning to issue bail out money to automotive manufacturers, the edicts of elected officials to auto executives is that they need to trim the fat, or risk the wrath. While only insiders may know what those consequences are, it is clear the auto industry is expected to become much leaner.

The biggest impact on the new car buyer? Most likely they will have fewer competing dealerships to shop at within geographical locales. Have you ever wondered why there were 7 Chevy and 6 Ford dealers in your area, all likely within an hours radius of each other? Free market capitalism. Often the same dealer owns 2, 3 or more of those “outlets” and simply wanted more exposure. Think WalMart in every neighborhood and you’ll have the picture.

With the restructuring of the manufacturers distribution chain, many dealerships will be shutting down. GM has tentative plans to close over 2600 car lots across the U.S. alone!

The biggest impact on the consumer, however, is that instead of driving 10 minutes to get your warranty work completed, you may have to drive to the other side of that hour long radius. That, of course, is better than having no dealer support in sight.

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