Rocky's Autos closes at a time when used car dealerships hit hard by supply chain, inflation

Colorado's car sales have been impacted by these strange financial times. Supply chain issues and inflation continue to impact the market.

This week it was announced that a Denver staple, Rocky's Autos, has closed up shop, after being in the used car business for 40 years. An employee with the company told CBS News Colorado, that sales at the dealership plummeted once the pandemic hit.

"Every day I kept seeing fewer and fewer cars on his lot," said auto salesman Maurizio Franzese.

Franzese owns Magic Financing just across the street from Rocky's. Franzese loves what he does, but said the current climate is getting harder for those in the automotive industry.

"I've been around for 36 years," Franzese said. "I'm not used to paying these prices on these cars. For example, I used to buy these trucks for $20,000, but now I have to pay $23,000-$24,000 over price, so it's gotten tough."   

More expensive used car purchases for the dealer means more expensive cars out the door for the buyer. Tim Jackson, the president of the Colorado Automobile Dealers Association, said the pandemic made it tough for many dealerships because they didn't have as much to sell.

"So there was a huge increase in demand for cars in the second half of 2020, and that's been leveling out since then, but then the supply chain shortage hit, so that's created problems on inventory," said Jackson.  

The recent bumps in inflation are also playing a role. Jackson said right now it's a changing landscape for the automotive sector, and more consolidation between businesses is coming.

"So the consolidation will be in fewer new car stores, fewer used car stores, but higher volume in each of those stores," he said.

Jackson estimates these issues will last at least two more years. And with this rough terrain, Franzese plans to continue pushing through to survive this automotive hiccup.

"I'm going to have to step up to the game, and step up to the price, whatever these cars are bringing," Franzese said. "We all have to eat and we all have to drive."