Are you searching for a used car and prefer the personalized service of a smaller dealership? Mom And Pop Car Dealerships Near Me offer a unique car buying experience, often providing a more personal touch and building relationships with customers that last beyond the sale. But can these smaller dealerships survive in today’s competitive market dominated by large auto groups?
The answer, according to industry experts, is complex and depends on several factors. Brand strength, local market conditions, succession planning, and the owner’s desire to continue operating all play a role. A Toyota dealership, for example, benefits from a strong brand reputation and high demand, increasing its likelihood of success regardless of size. Similarly, a single-point dealership in a less competitive market may thrive due to limited local competition.
However, smaller dealerships with less popular brands in saturated markets face significant challenges. Without a distinct advantage, they risk losing business to larger competitors with extensive inventories and aggressive marketing strategies. As Alan Haig, president of Haig Partners, notes, these smaller operations might slowly lose market share to bigger rivals.
Interestingly, franchise laws mandate that all dealerships, regardless of size, purchase new vehicles at the same invoice price from manufacturers. This levels the playing field, eliminating economies of scale for larger groups. Owning a large dealership network doesn’t guarantee better pricing on new vehicles. Every Ford dealer pays the same for an F-150, regardless of their size.
Despite this level playing field, the automotive landscape has shifted dramatically in recent years. The rise of e-commerce and the willingness of consumers to purchase vehicles online, often from distant dealerships, has intensified competition. Companies like Carvana, despite current financial challenges, proved that consumers will buy cars sight unseen if the process is convenient.
This shift has empowered large dealership chains like Lithia & Driveway Motors, which leverage vast online inventories to attract customers nationwide. Lithia’s Driveway platform, boasting nearly 50,000 new and used vehicles, exemplifies this strategy. The ability to offer a wide selection online provides a significant advantage, especially during inventory shortages. Bryan DeBoer, Lithia’s CEO, highlights that expanding the search radius dramatically increases the potential customer base for a specific vehicle.
However, not all manufacturers embrace online sales with the same enthusiasm. Tom Doll, CEO of Subaru of America, emphasizes the importance of personal relationships in fostering brand and dealership loyalty. He believes that the in-person experience, allowing customers to interact with the vehicle and build a connection with the dealership, remains crucial, particularly for a brand like Subaru.
Despite the challenges posed by large consolidators and the growing popularity of online car buying, mom and pop car dealerships near me continue to play a vital role in the automotive retail landscape. Their personalized service, community ties, and focus on building long-term relationships offer a compelling alternative for car buyers seeking a more intimate and less transactional experience. They often provide exceptional customer service and build a loyal following within their local communities. While the future may be uncertain, these smaller dealerships remain a valuable part of the car buying ecosystem.
