Falvey's New London dealership will scale back to 'bare bones'

New London - Falvey's Inc. owner Tim D. Falvey will retire in three weeks, citing the tough economy and loss this past spring of the Chrysler new car franchise.

Falvey will step down Nov. 18 and clear the Ocean Avenue lot of about 30 cars still on the premises by Nov. 19, he said Tuesday. The dealership will remain open with a skeleton crew as a "bare bones" used-car operation, but most of the 11 remaining employees will be laid off, he said.

Reminiscing about the good times, which were as recent as 2006, when he purchased the Michael Chrysler Kia dealership, Falvey, 71, said he hopes to turn the property over to a man who would run a scaled-back used car operation with a single mechanic.

The deal is not yet consummated and he would not name the prospective buyer.

In its heyday, Falvey's would sell up to 40 used cars a month, Falvey said.

"We don't have that anymore," he said. "It's a tough economy to keep a business going. In order to make this business work, you'd have to spend a lot of hours here, which I don't want to do."

In May, Chrysler didn't renew franchises at 789 dealers across the country. Falvey's put its focus on used cars and service, but business is "way off," he said.

"I don't have time to wait" for the economy to recover, he added.

The Norwich Falvey's dealership, which is still a new-car franchise, will remain open and Falvey hopes his customers will go there for sales and service. Falvey co-owns the Norwich property with his brother Richard, nephew Rick and son Tim P. Falvey.

"I was born into the business," Falvey said. "It's changed today. … The banking industry is the most difficult - (especially) financing."

He pulled out a small orange guidebook to new and used car values, the industry "bible" issued monthly and put out by NADA, which touts itself on its Web site as "the most comprehensive vehicle information website on the Internet today." With used cars in short supply, prices for them are rapidly climbing, he said.

"You take your Jeep product," Falvey said. "In the last three months, it's gone up $2,000 to $3,000 a car. It's absolutely insane. All your Chrysler dealers are very low on inventory."

Falvey's father, Clarence, opened the dealership in 1951.

"We're looking forward to having (customers) go to Norwich," where Falvey expects to "keep his hand in" the business, largely by going to auctions, he said. "We thank them for their business, their friendship."