The last 4 months, I have been working for a Pontiac, Buick, GMC Dealer that has been out of trust with GMAC.
"Out Of Trust" occurs when a dealer uses the money for other purposes after selling a car. A Dealer does not own all the cars that you see at a dealership. They are usually, in most cases, under a floor plan with the corporation. In my situation, a GMAC Floor Plan. After a dealership sells the car, they are supposed to pay off the car with GMAC and use any profit for other purposes. The Dealer I worked for was using all of the money for other purposes and not paying the floor plan money owed. On top of this, they were not paying off trade ins! A customer would trade a car and call back 3 months later saying the payoff was still not made!
The economic times have caused many dealers to rob from Peter to pay Paul, but this can only last so long. I saw the writing on the wall and left recently as I cannot in good conscience see this happen to unsuspected buyers. Although the economy has had some affect, poor money management would be a more logical explanation.
If you are working at a dealership, when do you know that it is time to go. One of the best clues is when you are not getting any new inventory. We went from 300 cars on the ground to 40! Another cause for concern is when you have to check a key out with a GMAC Representative. GMAC or other flooring companies will send in reps to manage inventory to ensure there inventory is paid on time. We had to pay a car off before we could deliver it. Just remember this, the Dealer Principal or Owner will be the last to tell you there is a problem. They have the mentality that they can sell there way out of a bad situation, but most of the time they cannot. They will always tell you that it is business as usual and things will be straightened out, most of the time they are not.
If you work at a dealership that has concerns, find another dealer to work for, PERIOD! Most dealers do not have money problems because they have managed there dealerships correctly. Go to work for a dealer that has sufficient inventory, do not wait on the gates to be locked!
It was the hardest thing for me to do since I was at this dealership for 10 years, but I had to move on. Change is inevitable and we must change with the times. I wish the dealer I left all the hope and luck that they survive, but it is time for a new chapter in my life. I am one of those that hates change, but am actually looking forward to this new move.
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