The National Automobile Dealers Association Chairwoman, Annette Sykora, told journalists today that in light of global economic difficulties, the dealer group anticipates 700 car dealerships will close their doors for good. That 700 store figure represents about 2 percent of all car dealerships across the United States.
Nearly 94 percent of new car buyers finance their purchases, according to the Detroit Free Press, meaning that, as securing financing becomes more difficult, fewer buyers will walk out of showrooms with new cars. NADA reports that many dealers have been unable to obtain bank financing for buyers with FICO credit scores above 700.
“Dealers who have been in business for decades say they have never seen anything like this before,†Sykora told the press.
Even large dealership groups like Autonation have suffered dramatically. The question haunting NADA is just how many car dealers will be able to weather the storm.
