DUNLAP, Tenn. — Fewer than 20 vehicles remain in the inventory that Forrest Cate is trying to sell before he closes the doors on the dealership that has been a fixture in this town for more than 25 years.

Dodges, Chryslers, Fords and Jeeps, marked at closeout prices, sit in a single line along Rankin Street

“It’s so surreal,” Mr. Cate said. “Clearly, we have too many dealerships for the current market conditions. This is an adjustment, and we are part of that adjustment.”

When an auto dealer closes in a small town, it means more than the loss of a few jobs. It means losing what is often the largest tax revenue source as well as a business that often contributes to a variety of charities. It can also be like losing a longtime friend.

Dunlap Mayor Dwain Land said the loss of the dealership is a big blow to the small town of less than 5,000 people. Only a Gentry Chevrolet dealership remains.

“A lot of good people lost their jobs,” he said. “(Losing) the local tax that is brought in from new and used vehicle sales is a big blow.”

In Dalton, Ga., Courtesy Dodge will exit the new car market and focus solely on used cars and trucks.

“We have been here 20 years, and we plan to be here another 20,” said Jim Higdon, business manager at the dealership.

Dalton Mayor David Pennington said hopes the city doesn’t lose any more of its dealerships because, like Forrest Cate Motors, the loss means much more than shrinking tax dollars.

“Those are some of the best jobs,” Mr. Pennington said. “They usually employ 30 to 100 people, pay good wages and have extremely low turnover.”

Like family

Forrest Cate Motor Co. sat along Dunlap’s main thoroughfare for about 25 years, and it was the primary transportation supplier for many of the town’s residents.

Phyllis Stocker had her 1999 Ford Mustang serviced at Forrest Cate regularly, but now she will have to find another place.

“I think this is a big loss to the community,” she said.

Over the years, Ms. Stocker has come to know many of the dealership’s employees, some of whom had worked at Forrest Cate Motors for 20 years. Some of those may have trouble finding other jobs because so many other businesses in town also have closed, she said.

“There’s just not much left here,” she said.

Howard Hatcher, executive director of the Sequatchie County Chamber of Commerce, said it feels as if a part of him has left.

“They have been here for a long time,” he said. “It’s like losing a member of your family.”

Tim Keener, assistant manager of the Family Dollar store across the street from Forrest Cate, said the loss of the dealership will be hard on the entire town.

“It’s been here a long time,” he said. “It’s hard to get used to it not being here.”

Mr. Cate announced in late March that he would be shutting his doors — a month before Chrysler named 789 dealerships that must close by June 9 and General Motors notified 1,100 dealers that their franchise contracts would not be renewed in 2010.

The Dunlap auto dealer said he had trouble operating due to the automotive credit crunch and saw the writing on the wall. He was certain he would have been among those dealers Chrysler slated for closure had he not decided to close on his own, he said.

“I kept looking in the mail expecting to get a letter, and I just couldn’t live like that,” Mr. Cate said.

He said he has been touched by the outpouring of community support.

“Most people realize how difficult the situation is,” he said. “The outpouring has been very warm.”

hanging around

At Courtesy Dodge in Dalton, Mr. Higdon said there are 43 more new vehicles to sell before the transition to used cars is complete.

“As of now, we have until June 9, but we hope the (Chrysler Corp.’s) bankruptcy judge will give us more time,” he said.

Mr. Pennington said he is glad to see the city will keep at least part of the Courtesy dealership.

“In this car crisis, everyone is focused on Detroit and the manufacturers, but no one is looking after the dealers,” he said. “That is a help, but the used car market is not nearly as valuable as a new car dealer.”

In Sequatchie County, Executive Michael Hudson knows it will be difficult to replace Forrest Cate. Not only was the business a major source of revenue for the area, Mr. Cate’s charitable contributions to the community will be missed, he said.

“As a whole, it is going to affect us greatly,” Mr. Hudson said. “You hate to see a business such as this leave. It’s like a part of you is leaving.”

Mr. Hatcher agrees that the Mr. Cate’s support of Little League baseball and other organizations will be a big loss unless someone else steps up to fill the void.

“He was always ready to step up when there was a need,” Mr. Hatcher said.

Mr. Cate said he believes a business has an obligation to give back to the community.

“I don’t think you can ever do too much,” he said. “I think it is a responsibility of business people to get involved and do that.”

Mr. Land said he and Mr. Hudson are in frequent contact and have some leads on businesses that may move into the space vacated by the dealership. He declined to release any information about who or what types of business are interested.

“It is tough times all over, but we hope to pull out of this stronger and better,” Mr. Land said.

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