Michael Cho, president and chief executive officer of the new Acura of Reno dealership, had high hopes when the dealership opened in July.
Sales held up for the first few months, Cho says, before flat lining near the end of the third quarter as credit markets tightened.
In addition, Cho says, most prospective buyers have negative equity on their vehicles, owing more than the vehicle is worth.
"No one will finance that negative equity, so it is very, very difficult to make deals," he says, noting that credit-worthy customers also are holding back. To cope, Acura of Reno has reduced its workforce and cut expenses.
"But I am thinking this springtime it is going to come back around," Cho says.
