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Sour economy forces local Hyundai lot to close down
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LAS VEGAS REVIEW-JOURNAL
Updated: Apr. 10, 2012 | 10:30 a.m.
Chris Cadot goes from being sales agent of the month at United Hyundai in Las Vegas to looking for a new job to start the new year. Luckily for him, he transferred to United Nissan.
Cadot's accolades at United Hyundai were painted on the showroom window of the shuttered automobile dealership at 2025 E. Sahara Ave., where the lot had been cleared of inventory and a letter on the door referred any business-related issues to United Nissan.
A dealership-owned Hyundai Veracruz Limited parked in the general manager's designated spot was being loaded with boxes Monday.
"It happened real quick," a man at the dealership said.
The business employed about 100 people.
Calls to United Hyundai and its parent company, Forman Automotive, were not returned. Bank of America has sued the company, claiming it's owed $12.3 million by Forman.
The general economy may be showing signs of recovery, but not enough to save the automobile industry, which has seen a number of dealerships close in Las Vegas. Just down the street from United Hyundai are empty remnants of Pat Clark Pontiac and Las Vegas Cadillac.
Bankrupt automaker Chrysler Corp. terminated franchise agreements with nearly 800 dealerships last year, including United Jeep Chrysler and United Dodge in Las Vegas. Another Chrysler dealership, Integrity Chrysler, had already closed due to poor sales.
General Motors also announced dealership closures, but none in Las Vegas. Bill Heard Chevrolet and Vista Chevrolet had previously closed when the economy hit the skids.
Consumers are reluctant to spend on big-ticket items such as new cars when they're worried about keeping their jobs and losing equity on their homes, said Jeremy Aguero, principal of Las Vegas-based Applied Analysis and speaker at the upcoming Preview Las Vegas economic forecast.
Taxable sales on new automobiles declined 30 percent in Southern Nevada last year, he said.
"The auto industry is in the middle of the economic storm," Aguero said. "In addition, consumers have been conditioned to wait for a deal like 'Cash for Clunkers,' some program where they can buy something for less than it's worth, or at least that's what they perceive."
Unemployment in Las Vegas topped 13 percent during 2009 and even people who are working have less money to spend, Aguero said.
"It also has to do with expectations of how you're going to be doing a year from today," he said.
A banner at the closed dealership advertised Hyundai as the highest-ranked compact car for initial quality by J.D. Power and Associates at up to $5,300 less than the competition.
Hyundai Motor and affiliate Kia Motors aim to boost sales by 17 percent this year driven by a recovery in the global economy and a series of new models. The auto group, which sold a record 4.63 million vehicles last year, is targeting sales to rise to 5.4 million in 2010, Chairman Chung Mong-koo said Monday in The Korea Times.
Contact reporter Hubble Smith at hsmith@reviewjournal.com or 702-383-0491.
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It's total fraud. In many cases the dealerships do it to get people hooked on the cars they show off, and then get them to show them off to their friends. A few days later the dealer calls back saying they need more money down to try and squeeze extra cash out of the deal. By that time you're embarrassed to tell your friends that you can't get financing, so you come up with more cash to keep the car and your dignity. It's supposed to be illegal in Nevada now.
With United, the Jeep was over$16K Blue Book value, and the guy signed the "four square" with a price of $12,999. At Desert Dodge, they were listing a recently traded-in Jeep @ $15K KBB, but it had a tons of after market accessories that increased it's value. But when the finance manager went to go and get the VIN off the car in the back (remember, it was traded in 2 days earlier and not even washed), that's when this sudden story about it having a cracked(?) frame came up. Next day they had it both listed and parked out front @ $19,500. I confronted them and asked if they were selling it too low, or if they were actually going to endanger the lives of someone by selling it. No answer.
I agree with Zippy on "Total Money Makeover" being a great book to get you on track. Once you have things in order and can estate planning, Suze Orman's books are great resources to move onto.
It's amazing how when I was in school as a child, I was taught how to write a check and balance a checkbook and how to spend, but never how to save. Let alone what a "credit score" was. I'll teach my children.
Hit a nerve?! You couldn't hit the broad side of a political philosphy.
My retirement is set because I'v worked all my life and saved. The idea of me needing someone like you to pay for mfy retirement is beyond laughable. My point was, and remains, that you felt the need to use this article as a launching pad for name calling underthe guise of alleged humor.
It's not a matter of political correctness versus basic finance, it's a matter of basic human values trumping greed.
"harry", that "libtard thing? that's really funny...really funny. You're killing me with that material. Sadly, Kenny never suggested anyone was owed a job...he merely pointed out the moral imperative incumbent upon those who, by virtue of their immense profits, have a societal duty to act ethically.
But hey, you keep up that really funny material, because I'm sure the gang at KXNT eats it up......
United Hyundai was poorly run and had the reputation of being extremely dishonest. I bought a car from there before it became United and when I went back looking to possibly get a new one, I was disgusted. The service department there was really good and honest though. I feel bad for those guys.
DMC..to give more info on the 'four square' phrase.. this is when the salesperson lists 4 factors, your down payment, trade-in value, your desired monthly payment and the price of the auto (I think)...they will then manipulate the numbers in there favor but will somehow try to sell it as beneficial to you... this is why they ask for this info from you up front, to manipulate the numbers... also a similar event happened to my bro, about buying a vehicle one day only to be told the financing didnt go thru the next... nothing short of fraud if you ask me.... and I have no doubt the owners walked away with their wealth in tact, they could care less about the employees or the debts... we'll probably here of a bankruptcy filing in the future..