First, the repo man arrived at Weaver Auto and Truck Center in November, hauling away new Chevrolets, Pontiacs and GMC pickups.
Then, a more lucrative market and a higher visibility lured Grass Valley Ford to Auburn.
In June, Chrysler Corp. announced it would be trimming back, and the last brand-new car for sale in western Nevada County rolled off the lot at former Liberty Dodge Chrysler Jeep. That was ages after the Jim Keil Chevrolet dealership closed in Glenbrook Basin.
For the first time in generations, locals have no place at home to buy a brand-new car.
With the loss of the dealerships, however, Grass Valley has become a haven for cars that aren't necessarily new — just new to you.
A handful of dealerships have picked up the baton that the Big Three dropped when red ink began flowing in Detroit.
So far, business has been better than any of the dealerships could have expected, despite the local economy continuing to sputter along like a Yugo.
Then, a more lucrative market and a higher visibility lured Grass Valley Ford to Auburn.
In June, Chrysler Corp. announced it would be trimming back, and the last brand-new car for sale in western Nevada County rolled off the lot at former Liberty Dodge Chrysler Jeep. That was ages after the Jim Keil Chevrolet dealership closed in Glenbrook Basin.
For the first time in generations, locals have no place at home to buy a brand-new car.
With the loss of the dealerships, however, Grass Valley has become a haven for cars that aren't necessarily new — just new to you.
A handful of dealerships have picked up the baton that the Big Three dropped when red ink began flowing in Detroit.
So far, business has been better than any of the dealerships could have expected, despite the local economy continuing to sputter along like a Yugo.
McMillen's Gold Country Motors: ‘Desire to buy is still there'
John Isaeff, who owns McMillen's Gold Country Motors with his wife, Cindy, said he's done quite well since the new-car dealerships bailed.“I was afraid when the new cars were moving away, there would be a negative effect,” he said. But instead, “We're busy. I'm pleasantly surprised. The desire to buy a car is still there.”
Isaeff, like many of his counterparts, sells late-model used cars. His niche is mostly Japanese marques and four-wheel-drive cars and trucks. He has averaged about one sale a day for the past two months.
“I have fewer cars to sell this year than last year,” Isaeff said. Like his fellow dealers, he takes trade-ins as well as cars he buys at auctions from as far away as Portland, Ore., and Reno.
Pioneer Motors: ‘Retreat of the impulse buyer'
Tom Rubino, who owns Pioneer Motors on East Main Street, said most of his customers are those who need — rather than want — newer transportation.“Business is a mixed bag,” Rubino said. “What we're seeing is a retreat of the ‘impulse buyer' and a return of the ‘need buyer.'”
These days, people meticulously research their purchases before opening their wallets, Rubino said.
Nearly all of Rubino's cars are lease returns, usually less than 3 years old, most of which still have a portion of their factory warranty.
While Rubino expressed regret at seeing Weaver close and Grass Valley Ford move, he knew it would probably be easier for his business to survive, simply because he owns his building and has a longtime lessee, Enterprise Rent-a-Car, to share expenses. He also owns all of his own inventory.
“Those of us who have been in the industry saw the wave cresting and crashing down,” Rubino said. “Those dealers who were highly leveraged were not going to be able to survive.”
Liberty Motors: ‘Used is better than new'
Liberty Motors, which until early summer was a Dodge franchise, succumbed to the parent company's financial instability. But the chance to stay in the game and focus on selling newer used cars keeps Gary Alcombrack bullish on his dealership.Chrysler's pullout, he said, “was a Godsend to us, because we've always concentrated on used cars.”
Alcombrack is the only dealership of the three with a full-line parts and service department, and Liberty performs warranty work on cars for which an extended warranty is purchased.
Selling used cars, Alcombrack said, is a return to his roots.
“That's always been the mainstay of our business. I've always been of the belief that a used car is better than a new car,” he said, because you can buy a 1-, 2- or 3-year-old car for half the price when it was new.
Alcombrack started selling used cars on East Main Street before moving downtown, finally settling on the Freeman Lane dealership 14 years ago.
He has a special area at the dealership he calls the OK Corral, where cars sell for less than $10,000.
“It's a real easy way for people to get in on the ground floor with their own vehicle,” Alcombrack said. “We're trying to attract an audience where we have something for everyone.”
Selling used means Alcombrack can slash his overhead: His mechanics and salesmen no longer have to attend costly training and sales sessions Alcombrack paid for. His sales staff works on salary, so there's a chance you won't see vultures on the lot waiting to pounce when you step from your clunker.
‘Cautiously optimistic'
All three of the dealers note the economy will determine their success and whether new car sales return to Nevada County.“I'm cautiously optimistic,” said Tom Rubino, who used to work for Alcombrack. “I see a light at the end of the tunnel, but the length of the tunnel is undetermined.”
Isaeff's business has been buoyed in part by Internet traffic from out-of-town customers.
“That's a surprise,” Isaeff said. “I talk to more people. There's a little less competition out there, but more people.”
Alcombrack believes everyone selling used vehicles locally — including those who use a park-and-sell lot in Grass Valley and another lot across the street from City Hall — will have a reason to succeed, if only because people will be motivated to shop locally and save money where they can.
“Just give us an opportunity to show you what we have, and you'll be pleasantly surprised,” Alcombrack said. “See what we can do — you'll be happy.”
To contact Staff Writer David Mirhadi, e-mail dmirhadi@theunion.com or call 477-4239.




News




ENLARGE



