ROGERS, Ark. —Credit unions in some part of the country may discover an auto dealer with which they have partnered on loans has turned off its engine. America’s Car-Mart plans to close 42 dealerships — roughly 30% of its locations — as the company seeks to cut costs following a significant quarterly loss.
The Rogers, Ark.-based used car retailer reported a $76.7 million loss in its most recent quarter, and company leaders said the closures are part of a broader effort to stabilize operations while pursuing financing, 4029tv.com reported.
Nearly one-third of Car-Mart’s 136 dealerships across 12 states, including Arkansas, are expected to shut down by April 14, according to the report. The company has not disclosed which specific locations will close.
Car-Mart said customers affected by the closures will still be able to make payments online or at remaining dealership locations, the outlet reported.
Potentially Broader Implications
The move could have broader implications for both workers and the regional auto market, according to University of Arkansas economist Jeff Cooperstein, as cited by 4029tv.com.
“If Car-Mart closes locations, it means that competition in the auto sales industry is declining — you might see higher prices,” Cooperstein told the outlet.
He added that job losses tied to the closures could ripple through local economies.
“Anytime a company closes locations and has layoffs, that has a negative effect on the economy — fewer people are employed, so more people are entering the job market,” Cooperstein said, according to 4029tv.com.
Ripple Effect
Those effects may extend beyond the auto sector, impacting nearby businesses that rely on steady customer traffic.
“There’s a ripple effect in terms of local businesses,” Cooperstein said. “If you used to go get lunch two or three times a week from a local business and now you’re laid off, you’re not going to, so that local business gets impacted,” he told the outlet.
