SUVs, Trucks, Slowly Choking Car Dealerships

In the case for car dealers who had concentrated heavily on sports utility vehicles and pickup trucks. According to the Wall Street Journal, dealers are offering additional incentives beyond what is being offered by the manufacturer. For example, in one dealership in Albuquerque, New Mexico, a 2008 Dodge Ram pickup, which had an original sticker price of $30,000, is now being sold for $15,000.

They have no choice. As buyers shift to smaller, more fuel efficient vehicles, dealerships are doubling their net loss to $136 on every vehicle sold during the first four months of 2008. Their loss per vehicle was only $61 in 2007.

That is, if they can. The economic climate is making many owners of dealerships to close their shop. This is in addition to closures performed by the Detroit Three, who are in the process of closing or consolidating dealerships.