Pohanka Chrysler Dodge Must Sell Inventory in One Week

Pohanka Chrysler Dodge in the spotlight

A dealership in Leesburg, Va., called Pohanka Chrysler Dodge has become the face of the Chrysler bankruptcy and dealership shutdowns.

Pohanka Chrysler Dodge was featured on “The Today Show” this morning, and people are shocked by what dealer/operator Ray O’Bryhim has to say.

Dealership deadlines

O’Bryhim explained that Pohanka Chrysler Dodge can’t legally sell any merchandise after June 9, when the dealership’s franchise contract with Chrysler ends.

The Pohanka Chrysler Dodge space will remain a car dealership, but it will be a different type. O’Bryhim says the space will become a “used car superstore.” However, the official Pohanka Chrysler Dodge dealership must get rid of more than 100 new cars still on the lot, and that means huge price slashing. Those cars need to move, with as tough as it is to get unsecured loans nowadays, that means discounts of up to 40 percent. Here are some examples from CBS News:

So a car that was listed at $19,575 is going for $14,987, or 20 percent off. A Dodge Nitro originally being sold for $29,170 marked down to $17,510 — or 40 percent off. And a Dodge Caliber with an original sticker price $25, 715 now on sale for $19,034.

High hopes

The owner of Pohanka Chrysler Dodge says the dealership doesn’t plan to make any layoffs, even though the company is held liable for the Chrysler vehicles still on its lot. Chrysler is currently under bankruptcy protection, so it is not required to take any of the vehicles back.

Any vehicles that don’t sell will just be chalked up as a loss for Pohanka Chrysler Dodge. However, with the deep discounts the dealership is offering, it has already managed to sell 20 cars. If sales keep up this way, it’s possible Pohanka Chrysler Dodge will be able to sell all of the new Chrysler vehicles before the June 9 deadline.

One of the lucky ones

With the publicity Pohanka Chrysler Dodge has gotten, it’s likely that the dealership will be successful in moving the necessary merchandise. This line from the company’s web site has been splashed all over the press:

“Chrysler bankruptcy forces liquidation. This is It… Period!. Everything must go regardless of profit. New Chryslers and Dodges for pennies on the dollar, today.”

However, the 788 other Chrysler franchises who will have their agreements severed might not be so lucky. Most won’t be able to “reinvent themselves as used-car superstores.” The majority will simply have to cut their losses and shut down. Longtime family businesses will be no longer and employees will be filling out their online unemployment forms.

Good time to buy a car

Because of the huge number of Chrysler dealerships that are being forced to liquidate their inventory, there is more than likely a dealership close to you that is going through the same process Pohanka Chrysler Dodge is conducting.

So if you are in the market for a car — or even thinking about being in the market for a car — check out the dealerships around you. You might just get a really great deal and be able to help a car dealership out at the same time.