Ex-dealers forming national used car chain

A new, national used car chain called AutoStar Superstore is being formed from Chrysler and GM dealers which are losing their franchises. The cost to dealers ranges from $6,200 to $37,500, depending on their market; in return, they will get a certified used car program, national branding, financing, a dealer management system, employee training, participation in a warranty system, and procurement services.

The chain hopes to open five stores a month for a quarter, then open ten stores a month, using dealers who already have active repair and sales areas. For customers, the chain will provide a recognizable alternative to used car dealers, who often have poor reputations; warranties; and the aforementioned certification program. Some dealers already have loyal customers who can now continue with used cars.