Part 8/12:
Many dealers, especially those inexperienced or over-leveraged, risk losing access to financing altogether if they overextend during boom times. This cycle of indebtedness and repossession creates a turbulent environment that remains recurrent year after year.
Market Entry and Exit: The Small Dealership Phenomenon
The industry insider observes that new small dealerships often pop up on highways, only to shut down after a few months. These temporary "pop-up" dealerships frequently fail due to an inability to navigate the complex, volatile market and secure sufficient financing.