The car buying incentives seem to get more creative every month these days as dealers look to keep their inventory moving. This is great news for potential new and used car buyers yet there is also another interesting phenomenon occurring which we have noticed over the past year.


As the economic news continues to be less than prosperous the ongoing concern among many used car dealerships is well founded and the concern for their ability to keep their doors open is very real. The customer base in a poor economic climate will reflect the overall lack of consumer confidence as well as the typical availability of credit for consumers to make larger purchases with car loans. This is simply an effect which is the result of a poor outlook in the financial industries as well as in the general public as a whole.

However there is an interesting flip side to all of the less than positive news regarding the public’s ability to get credit and the slow economy based on an awful job market and all of the other dire information which is the reality of the times. There are some interesting approaches which we have seen among those who are in a financial position of where they are able to actually take advantage of a down economy. These are the entrepreneurs who have the ability to make purchases far larger than just new or used vehicle inventory.

Dealers Buying Cars

Some car dealers have actually been buying up other smaller used car dealerships as quickly and frequently as they can find them. On the good side this helps the failing small used car dealerships which is a good thing because it in most cases at least helps them from things getting completely out of hand trying to keep their businesses doors open. On the other side however this may or may not be such a good thing for the daring and typically already extremely well established entrepreneurs in the new and used car industry.

For example we have witnessed over the past year several already established car dealerships actually buying numerous failing smaller used car dealerships. This will typically include the buildings, the actual land as well as the business and all of the used car inventories.


It is reputed that these acquisitions are most often very good buys as far as value goes. In other words since the smaller car dealerships where in financial jeopardy to begin with the buyer was able to acquire all that encompasses the business at fire sale type prices. This is a bit concerning especially since it has become much harder to determine the actual value of the business, land and used car inventories in a steadily declining economy. However the risk also presents the potential of paying off big at some point in the distant future.

Many of the buyers where able to acquire prime locations for car dealerships and at the same time put a huge reduction in the overall competition in their local areas. Only time will tell if this gamble pays off for the buyers. As the bargains continue to seemingly get better and better for basically anybody looking to buy a new or used car right now it seems like it would indicate that the economic conditions are far from stable which would cause a bit of unease if there were huge acquisitions of failing businesses involved. However this does continue to be the time to buy a new or used car as the incentives keep getting more creative every month as all dealerships big and small are looking to sell their vehicle inventories to an ever smaller pool of potential buyers in most areas.