Seaside’s Hyundai dealership suddenly closes, opening a hole in the city’s budget.

Erik Chalhoub here, thinking back to when I purchased my vehicle in 2021 at Premier Hyundai of Seaside to take advantage of the pandemic-era deals. Buying a vehicle is a stressful and time-consuming process, but I had a positive experience here. I have also continued to take my car in for service there, chatting with the friendly service advisers.

Local Hyundai owners, and future ones, will now have to go elsewhere to service their vehicles or buy another one.

The Seaside dealership suddenly closed today, Dec. 12. Employees on site told me the announcement to staff came out of nowhere, only two days ago. Some were still in a daze, not sure of their next steps, while others had new jobs already lined up.

I visited the dealership on Heitzinger Plaza this morning, where workers were removing signs from the building as well as pushing and driving vehicles out of the showroom. I asked if they were going to hold a fire sale on the vehicles, but some staff told me these cars were heading to the nearest Hyundai dealership in Gilroy. Still, some salespeople were excited to tell me about the features of the latest Hyundai vehicles—I have to admire their dedication to the job, even though they are suddenly unemployed.

A longtime employee named Robert, who declined to give his last name, told me it was a sad day for the staffers.

“It’s just unfortunate,” he says. “I love this dealership.”

Robert also pondered what would happen to the dealership’s unofficial mascot, a 10-year-old chicken named Chicky Lou, who always visited the dealership for something to snack on. Indeed, the chicken strolled through the now-empty parking lot this morning as vehicles were being driven away.

Louisiana-based Premier Automotive purchased the Hyundai and Chevrolet/Cadillac dealerships in 2019 after they were shuttered by their previous Texas-based owner. The neighboring Chevrolet dealership moved to a new location in Seaside’s auto mall under new ownership earlier this year.

A representative from Premier Automotive did not respond to an inquiry on the reasoning behind the closure. Employees, though, said the dealership’s sales had plummeted this year.

A business closure is bad news for all involved, from the owners to the staff and customers, but when an auto dealership shuts its doors, it affects an entire city—especially its coffers. According to city budget documents, auto sales make up 45 percent of Seaside’s sales tax revenue. 

With such a high percentage, when one dealership goes under, it has a significant impact on the city’s budget, making it that much harder to provide basic services for residents.