Hill: Newman auto dealer is closing

Bigelow Chevy owner says its sales have stalled

By David W. Hill
dhill@modbee.com

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NEWMAN — Bigelow Chevrolet-Buick, a dealership that's been in operation in one form or another since the 1930s, is closing because sales have dried up amid the challenging economic climate, owner Lloyd Bigelow said Tuesday.

The dealership and its service center will stay open until the remaining inventory of new and used cars is sold, he said. He currently employs six people, down from as many as 19.

Stressing that he hasn't been shut down by General Motors, Bigelow said there is a chance the 1905 N St. dealership could survive if a buyer surfaces. He declined to elaborate.

David W. Hill

Bigelow, who purchased the dealership in 1997, said sales started falling about two years ago.

At its peak, Bigelow said, his Newman new and used car operation was selling between 20 and 30 vehicles a month. Lately, however, the sales have dropped to one or two per month. "We had one month where it was zero," he said.

Bigelow blamed the progressive decline in sales on the region's housing collapse, the credit crunch and weak outlook for farm products, especially falling dairy prices.

"People have just lost confidence," he said. "They've pulled way back on their spending, but you can't blame them."

When there have been buyers, Bigelow said, getting them approved for auto loans has been very difficult, even if they had good credit scores and thousands of dollars for down payments.

He said his longtime bank recently told him it wouldn't accept any more auto loans from him. "A loan is a loan," Bigelow said. "I wouldn't think they would care who it's from as long as it's credit-worthy."

Although operating a successful dealership in a small community is difficult, Bigelow thinks it can be done. Acknowledging he made some bad business decisions, Bigelow said a small dealership that focuses primarily on service and tightly controlling its vehicle inventory can survive until there's turnaround.

"I think this is a long way from over," he said of the recession.

Bee business editor David W. Hill can be reached at dhill@modbee.com or 578-2336.