Successful GM, Chrysler Dealership
Location: Mississippi > Confidential
Industry: Auto Related > Auto Dealers
Financials
Asking Price: $1,500,000
Cash Flow: $776,677
Cash Flow Comments: EBITDA
Real Estate: $2,000,000 (Not Included in Asking Price)
Seller Financing: Maybe
Business Summary
This is a very well established dealership that continues to have strong profits and sales. The area is growing and strong economically with job growth. Strong service department and parts sales departments are very profitable and enjoy a great reputation. One owner is willing to continue to operate as a minority partner. Only serious inquiries please.
About the Business
Year Established: 1955
Facilities: Great
Market Outlook and Competition: Strong
About the Sale
Management Training and Support: Yes
Reason For Selling: Retirement of majority owner
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Real estate not included. Pig in a pok-pok.
The Detroit 3 are still big in the south, particularly in the small towns and rural areas. However, at this time the small town dealers are struggling just like dealers everywhere.
The owner of this store should have retired a year ago when someone might have bought his franchises. Everyone keeps asking who will buy a car from a bankrupt company? This is a case of who wants to buy a franchise for a bankrupt company?
This is like trying to sell a ski house on a mountain slope known for frequent avalanches where 10 homes have been destroyed and 7 people killed in the last three years…………by avalanches.
Interesting that he says “GM” dealership, instead of being specific.
That pretty much guarantees that this is not a Chevy or Cadillac dealership, but one (or more) of the six brands that are so dead that LaNeve can barely keep a straight face when he talks about their futures.
The Chrysler dealership might end up worthless, or might end up as a ground floor opportunity to import Chinese cars.
Market Outlook and Competition: Strong
It’s nice to see that they even lie to each other.
That pretty much guarantees that this is not a Chevy or Cadillac dealership
Not necessarily. The ad is omitting details that would make it easier for someone who hasn’t contacted the seller or his agent to figure out which dealership(s) is on the block. If the ad was placed by a business broker, then the broker is also motivated to keep prospective buyers from going around him directly to the seller. I wouldn’t assume too much from this.
The worse part of owning a dealership would be working with all those smarmy sales weasels….er, sales consultants…..
Only serious inquiries, please.
Anybody who seriously considers this deal deserves it. The land is probably the most valuable thing about it, and it’s not included.
EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) is not a generally accepted accounting principle. It is not the same as net income and is often used to make a company look better on paper than it actually is.
Caveat Emptor, as usual.
You can make money owning this dealership, even without the land.
Purchased at the right price, this is a license to make money servicing a pretty massive sold base of vehicles for a pretty long time. It’s also a great base of operations for
a) a resurgent GM or Chrysler;
b) the additional transplant dealerships that will be needed to serve customers if the Big 3 drop out;
c) the Chinese crap cars all the limp-dong consumerbots so desperately want to buy for $6999.
Jack Baruth :
c) the Chinese crap cars all the limp-dong consumerbots so desperately want to buy for $6999.
Wow! But really, you shouldn’t hold back. Tell us how you REALLY feel!
I’m curious; what’s a “consumerbot”?
ZoomZoom :
December 26th, 2008 at 1:23 pm
I’m curious; what’s a “consumerbot”?
If you’ve ever said, “I don’t really care much about a car except that it gets me from point A to point B”, you may be a consumerbot.
Or a lifelong GM customer.
ZoomZoom: A robot that kills consumers. See: http://www.dieselsweeties.com/archive/1965
Well, I thought “consumerbot” was an insult; but if somebody says they only care about point A to point B, that’s not necessarily a bad thing.
It’s certainly not a “mindless/mind-numbed” thing; instead, it’s merely a choice, like some people like blue and others want lots of hidey-holes and others want to haul shit.
Potatoes…I read several of those comics. Uhhh, what’s the point? Okay, a couple of them were funny; but I don’t get the red robot thing.
c) the Chinese crap cars all the limp-dong consumerbots so desperately want to buy for $6999.
I don’t get this. For that much money, you can get a decent used car that’ll be worlds more reliable and comfortable than any injection-molded stamped-steel runabout hailing from the Orient.
Of course, some people buy new just for the sake of buying new. This is how Yugo briefly sold Yugos. And then the buyers experienced a mountain of remorse over the deal.
I don’t get this. For that much money, you can get a decent used car that’ll be worlds more reliable and comfortable than any injection-molded stamped-steel runabout hailing from the Orient.
Yeah, and for the price of a new 370Z you can almost get a Porsche 993 :)
My comment was meant to imply that there is a group of people out there who are eagerly awaiting the reduction of automobile production to the same lowest-Chinese-denominator that now characterizes virtually every other category of manufactured goods in this country.
To determine if you might be in that group, take off the shoes you wore today — not your best shoes, not a carefully selected set of shoes, but the shoes you wore to knock around the day after Christmas — and see where they were made. Mine say, “Made in the United States of America”.
If you’ve ever said, “I don’t really care much about a car except that it gets me from point A to point B”, you may be a consumerbot.
Nah. People who realize that a car is a simply a conveyance to get from point A to point B and thus purchase an economical and reliable vehicle to do so are not consumerbots. Consumerbots are those that have been sucked into the marketing bullshit that is spoonfed to the masses about autos. They feel that their car is a reflection of their manhood, causing them to spend way more money than is justified for what should be a simple transportation device. You know, car guys. Morons. The type of guys who complain that a commuter car like the Prius is boring or slow even though they spend their drive to work in stop and go traffic and the only thing that makes a real difference between cars on their commute is the quality of the stereo.
An important point that bjcpdx brings up: EBITDA not being a Generally Accepted Accounting Principle.
EBITDA is part of what caused the dot-com bubble to burst.
Let me tell you folks a brief story about EBITDA.
A very good friend of mine was given a Ford dealership near Dallas, Texas in exchange for the Ford handcuffs (massive debt, put most of his own savings in the deal.) According to the former weasels in charge, the dealership was still making a profit over the first half of 2007 and had EBITDA that was positive well into the six figures.
Turns out they were losing over $100k a month.
My friend thankfully made the best of a very bad situation. But the profits simply weren’t there and for good reason.. He ended up being given another Ford dealership in South Carolina… with Lincoln and Mercury in tow as well.
The person who buys into this deal will literally own nothing. This fellow (to use the term lightly) is trying to become an instant lotto millionaire all over again and use the real estate as a foundation for a six-figure income in perpetuity.
Qwerty : They feel that their car is a reflection of their manhood, causing them to spend way more money than is justified for what should be a simple transportation device…the only thing that makes a real difference between cars on their commute is the quality of the stereo.
That has to be the best comment ever. Made my day. I used to work with one of these. He made $45k a year but drove a brand new Lexus IS for his 20 minute commute as he was a “car” guy.
Kman did what I should have done in my first post by capitalizing Generally Accepted Accounting Principles (GAAP). This is an actual set of standards for accounting laid out by the FASB (Financial Accounting Standards Board), not my opinion of what is standard and what is not.