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February 15, 2010
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New Dealers Enter Market In Face of Challenges By Ted Craig
This may seem like the worst time to open a used-car store. Any new dealer faces the same shortage of inventory, credit and shoppers that drove thousands of experienced operators out of business. But a number of brave souls are making a go of it. The used-car business is rough, but it’s still better than real estate, which is where Lisa Casteneda and Karl Spielvogel came from. The pair opened Independence Auto Solutions in Charlotte, N.C., in November. The first two months were really slow, Casteneda said, but the new year started with five sales and a lot more traffic. Independence Auto Solutions carries five cars on the lot at a time, with 15 in inventory. Joyce Moore and her husband, Toney Perry, opened Patriot Auto Sales in Lincoln, Neb., in mid-September. Moore
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served in the Army and the National Guard for years while her husband worked for others in the car business. Patriot is the first store Perry has owned. The economic outlook appeared bleak when they decided to open the store, but the couple viewed it as the right time. “We just felt the economy would be improving,” Moore said. Both Casteneda and Moore were surprised by the amount of paperwork required for a usedcar sale. That says much considering Lisa comes from the real estate business. One advantage for these new dealers is plenty of good commercial real estate is available. Patriot is located right on the main highway and includes a garage. That was crucial because the store details all their vehicles. Independence is located on one of the busiest roads in Charlotte. These new dealers are trying to succeed by focusing on specific markets. It’s cheap cars at Independence. Many consumers are downsizing expectations, Lisa said, just like in the housing market. “There’s a lot of people looking for low-end cars,” Lisa said. “We’ve got a little niche here that we believe will work for us.” Patriot offers one-owner vehicles and promotes that at every chance, including when they answer the phone. “It really pays off for us and the consumer,” said Moore. Patriot vehicles also come with an 18-month, 18,000-mile service contract.
Photo by Davis Turner GIVING IT A GO: Dealer Lisa Casteneda offers value cars to attract customers to Independence Auto Sales, her store in Charlotte, N.C. Casteneda and partner Karl Spielvogel moved into car sales from real estate sales.
Moore and Perry believe the cars sell themselves and take a very low-key approach. They don’t even take phone numbers when people visit the lot. “If they want a car we have, we feel they’ll come back,”
Moore said. Patriot promotes itself through good works. The Web site features a “Patriot of the Month,” where the store gives money to a community volunteer. “It’s just amazing how many great people there are in this
state and they go unrecognized,” Perry said. Casteneda learned that every customer who comes on the lot may be a potential sale. “Treat everybody the same, because you never know who has cash,” she said.
IN THIS ISSUE • Toyota sales halted at auction after massive recalls. – Page 3
• Incoming NADA chairman Ed Tonkin follows in dad’s footsteps. – Page 8
• A large dealer group faces an uncertain future. – Page 5
• Auction owners plan new sale in Dallas after success in Phoenix. – Page 12
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