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Death of a Cadillac Dealership


Bruce Nunnally

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A letter arrives, notifying the Dealer that they will soon be losing their GMAC Floorplan support. Floorplanning is financing for a car dealership from the time the cars arrive at the dealer until they can be sold. Without floorplanning support loans most dealers cannot operate.

The Cadillacs are ordered from the factory. When they arrive at the Dealer the Dealer pays the factory with money from a floorplan loan. The Dealer then pays back the floorplan loan when the car is sold.

A Dealer would lose their floorplan support (usually) only if they are behind or have defaulted on floorplan payments.

The Dealership lays off workers, tries to raise cash, and looks for a new bank.

Next, flat bed car haulers arrive and begin to carry away the new car inventory. Without cars to sell, the Dealer closes their doors.

[article]

Bruce

2016 Cadillac ATS-V gray/black

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This is a shame and it won't bode well for the public's confidence.

Pre-1995 - DTC codes OBD1  >>

1996 and newer - DTC codes OBD2 >> https://www.obd-codes.com/trouble_codes/gm/obd_codes.htm

How to check for codes Caddyinfo How To Technical Archive >> http://www.caddyinfo.com/wordpress/cadillac-how-to-faq/

Cadillac History & Specifications Year by Year  http://www.motorera.com/cadillac/index.htm

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That can happen to any dealer, any make, anywhere -- not just the US -- and it's been a big problem for three months now. So far all the Caddy dealers in my area are OK, but I do notice that my favorite relly big Caddy dealer now has only about 100 cars out, and he keeps them out all day. And, I got a computerized phone call asking me back for service; I haven't had routine service done there in years because the techs don't like old cars with dirty, greasy undersides.

The real answer? If you're considering a Cadillac in the next few years, buy now. You'll never see a better deal.

Be warned that used car prices are really low right now, as I discovered when my nephew in another State had a black ice incident in his Ford Explorer and his insurance company wanted to total it out with minor damage. Then, I checked kbb.com on my car and was shocked again. Old, high-mileage large cars are running about 50% the price that they were six months ago. I expect that this won't hold up but if you can keep your old car until next June and sell it then the market will be better -- and don't let anyone use book price to intimidate you on selling or trading an old car.

CTS-V_LateralGs_6-2018_tiny.jpg
-- Click Here for CaddyInfo page on "How To" Read Your OBD Codes
-- Click Here for my personal page to download my OBD code list as an Excel file, plus other Cadillac data
-- See my CaddyInfo car blogs: 2011 CTS-V, 1997 ETC
Yes, I was Jims_97_ETC before I changed cars.

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we have a large dealer in the mpls area. denny hecker. he just closed 5 locations because dodge supposedly yanked his floorplan financing. he is a rather colorful character. he reminds me of tom petters who is in jail on a alleged ponzi scheme. sort of a madoff type situation. we are leasing a car thru a hecker dealer and they shut down a few months ago. not a big deal. just take it to another dealer who caters to that brand.

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Today, I saw a couple of BIG dealerships that were closed in the Florida Panhandle.

(Yep... I am on another road trip.) :D:D

Most of the other dealers that I noticed.... looked like they were WAY overstocked. They had cars all over the place.

Not good.

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That makes me feel that my favorite dealer is playing the game well by reducing his stock, and keeping what he has facing a busy street instead of in a back lot.

CTS-V_LateralGs_6-2018_tiny.jpg
-- Click Here for CaddyInfo page on "How To" Read Your OBD Codes
-- Click Here for my personal page to download my OBD code list as an Excel file, plus other Cadillac data
-- See my CaddyInfo car blogs: 2011 CTS-V, 1997 ETC
Yes, I was Jims_97_ETC before I changed cars.

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My local dealership (Westport CT), who I've established a great relationship with after many years (especially the Service Mgr), has just gone from Curran Cadillac to Curran VW :(

Now I have to start all over again, but they were the last Caddy dealership around. Stamford & Greenwich closed a couple of years ago. I'm now faced with getting serviced at my local Chevy dealer.....

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  • 2 weeks later...

We had that happen to our only big dealership in town. He had several floorplans (GM, Dodge, Jeep). He got behind at GM through mismanagement or whatever and used the Dodge floorplan to pay GM. They finally went into bankruptcy and two other GM, Cadillac dealers merged to buy them out. Don't know how many floorplans they ended up with though.

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  • 2 weeks later...
Chalk up another Westport victim of the economy--Curran Cadillac Pontiac GMC. an auto dealership mainstay on Post Road East since 1964, is closing its doors this week, putting 15 employees out of work.

...

The Internet killed the family car business, said Kusick, a seven-year employee. “It’s become an online auction. (People) search for a price online and then have the service done locally.”

“Today dealerships are run as corporations, not as family businesses where the family name was on the door and several family members were employees who gave personal attention,” Kusick said.

It’s like the transition of family-owned hardware stores to Home Depot and other corporate-style businesses where personal attention has gone by the wayside, he said.

He said Curran was unable to survive in an era when you end up competing online with a dealer on Long Island who has 5,000 cars.

[Curtains for Curran Cadillac after Four Decades]

Bruce

2016 Cadillac ATS-V gray/black

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