Some Chrysler and General Motors dealerships got a nasty surprise in the mail last week. As both companies see cash become tighter than it ever was before, underperforming dealers received a letter saying the Michigan-based companies no longer required their services. Ouch. That’s bad news for hard-working folk all over the country, with dealerships being the base upon which a car company’s empire is built. There may be a silver lining for dealers and customers alike however. While some lots have made it clear they intend to fight for their spot with the parent company, others are looking to different opportunities – like used car sales.

According to an article in the Automotive News, it’s likely those shunned dealers will reorganize as a used car operation. The piece says last year alone, of the 960 franchises that closed last year, around 10 percent reopened selling used cars. Expect that number to climb this year due to greater profits in the pre-owned world. AN says that a used car usually returns around $165 in net profit while its new counterpart serves up a net loss of around $992. Ouch.

Keeping the lights on at dealerships is good news for the people that work there, but it’s also great for shoppers looking to pick up a new-to-them used car. With hundreds of dealerships and their massive inventory capacities looking to wiggle into the used market, it should be easier than ever to find a good vehicle and a great price soon. What’s more, with an even broader used-car network out there, picking and choosing what vehicle works best for you should be a breeze.

Of course, more used lots isn’t necessarily all roses and sunshine, either. The AN article says that an increase in used dealers means sellers are less likely to pick and choose which cars they take in. The result could be a flood of less than admirable wheels out there. As always, doing your homework and researching the car’s past will do much to protect you from a lemon. [Source: AutomotiveNews]

Tags: chrysler, Dealers, Dealership, General Motors, Used Cars