Automotive Dealership For Sale
Real process for auto dealership for sale

This illustration is meant to bring to your knowledge; certain factors that can help determine the worth of dealerships near you and far away too. So here, are the values the same, for two Hyundai automobile dealerships, each dealing out 500 units of automobiles annually and earn a net sum of $500K annually? You’ll be able to make out your own answers after we go through the various factors: Location: In a scenario where one dealership is in Florida and the other is in Colorado, meanwhile you live in Los Angeles- are the market values still the same? Planning Volume: Where one dealership plans for a volume of 1000 and the other is 500- are the market values still the same? Used Vehicle: When one automobile dealership sells about 300 automobiles to hit the said $500K annually meanwhile the other sells 800 to make up the $500K- are the market values still the same? Earnings Continuity: When one of the automobile dealerships earned $300K last year and $500K this year, the other did $800K last year and $500K this year- are the market values still the same? Real Property and Facility: There is in most situations a rent on the property and facilities housing the automobiles; where the rent varies massively for both dealerships are the market values still the same? Cost of Marketing: Did the dealerships require an extra hand in getting their automobiles to potential customers; like via adverts and marketing generally? So when one automobile dealership spends more on adverts over a year than the other and still yield same revenue, are the market values still the same? Degree of Competitiveness: Are Hyundai vehicles in higher demand in Colorado than California? Probably because of traffic differences? Are the Hyundai automobiles in a single point market? So, are the market values still the same? Management: When one dealership has a better management team than the other, are the market values still the same?

So what is the true market value of your dealership? Deciding to learn about the true market value of your dealership would usually push you into contacting your Certified Public Accountant (CPA) who would, in most times than not advise you to appraise your dealership by ordering an appraisal. It takes three major methods or thereabouts to implement a settlement through the use of an appraisal. They are: Cost/ asset based approach, income based approach and the market approach. Usually, the cost/asset approach overlooks the magnanimous asset aspect of your dealership; hence the income and market approaches are the most suitable appraisal settlement approaches. The Income Approach: Here the a deal is made on the dealership based on its tendency to generate income over time. The calculation in this method will include a multiple factor and a cash flow system. In a situation where your dealership is rather losing money than generating income, there’s no cause for worry because dealerships losing money can still be worth a market value of millions; just based on how the true market value is organized. The Market Approach: The market approach of settling with an appraisal bases emphasis on third-party verifiable transactions; requiring large national data bank for transactions. The greater chunks of the transactions are not made public. Hence, due to your appraiser, your dealership will delve into direct comparison with similar dealerships that are traded publicly while neglecting the characteristics which may add a hidden value to your dealership. These characteristics can be location of dealership, buyers’ demand of your dealership, competition, marketability, market size, synergy, geography and the likes. Imagine when your dealership is presented to a buyer with all these unique characteristics,”yea” the buyer will pay more.
The most successful automobile dealership brokerage & consultant firm That’s a powerful statement... and that’s the kind of power you’ll put into action when you enlist our services. We’re familiar with every detail of facilitating, negotiating and consummating a sale. “We recognize that the sell of your dealership or group is a life changing event”
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Your dealership could be worth more than you think; probably by 50% or a lot more. There are a thousand of automobile dealerships for sale out there, despite looking similar in the basic dealership services they render; there are not any two automobile dealerships similar in their true market value; you may find yourself paying up almost a 100% more for an automobile dealership which could cost 50% less than its original price in another dealership. You may call it realistic market value, true market value or even fair market value, but the bottom line is with this tool you can now literally put a market value on your dealership or more accurately, a true and realistic market value. Every dealer who has got an automobile to deal in usually has a mental evaluation of the market values of their automobile dealership but the market value tool is proving that in most cases, those market values tend to be some percentage off the real market value, both negatively and positively. It has been found that most automobile dealers tend to overate or underrate the true market values of their dealership without the market value tool. There a few situations where you will want to know exactly what the market value of your dealership is rather than a value achieved by your gut. Some of these situations are:  For the sake of mere knowledge of your dealership market value  In the event of settlements  When acquiring insurances  For partnership sakes  When planning for a tax-free giving  When purchasing a dealership  When dissolving forged partnerships  When forging partnerships Do not miss the chance to get the best deals you can get by guessing what the market value of your dealerships is.


Automotive dealerships is a sort of dealership or business that helps buyers get a deal for any automobile they have interest in which is available in stock; these autos could be used or new. That is what a well-functioning automotive dealership should be about; making customer good deals while incurring their revenue. On the contrary, there are cases where underperforming automotive dealerships exist and the major consequences of being an underperforming automotive dealership is losing of clients and customers. The major events that lead up to tagging an automotive dealership as an underperforming automotive dealership are obviously when they do not serve their customers well by mostly not giving them good enough deals in terms of dealership cost and security.