Auto Bailout Affects Car Sales in Tri-CitiesPosted: Updated:
PASCO, Wash.-- They say when it rains it pours, yet another down turn for an auto industry already soaking in bad news.
For Bill McCurley it's not just one, but seven different manufacturers to keep track.
"I have to say I was disappointed that the Senate was unable to reach a compromise," said Bill McCurley, Owner of McCurley Dealerships.
But one part of the industry says they don't have much to worry about.
"It's not really affecting our business per say, because we are in the pre-owned certified business, with pre-owned vehicles," said Robert Sudeith, General Manager, at Hertz Car Sales in Pasco.
But could it trickle down?
"All used cars start out to be new at some point in time," said McCurley.
General Motors is expected to cut production, and close 21 factories across North America; and there's more.
"They intend to consolidate, their basically eight brands to four," said McCurley.
But while new cars are selling for some of the lowest prices in years, pre-owned cars are still the better deal for many.
"Basically we take the depreciation for you in pre-owned, when you buy a new vehicle they know that it's going to depreciate a substantial amount in the first year, and in pre-owned we've already taken that depreciation out, so people are taking advantage of the fact that they can save money," said Sudeith.
It's a trend to watch out for.
"Right now the average car on the road is a little over eight years old, it's going to be a changing market place, there's no doubt," said McCurley.