Acquiring a Car Dealership For Sale

April 10, 2014

A hot industry currently, the rise of the car dealership industry has been unprecedented and the purchase price for car dealerships for sale are now at all-time highs. People want to own automobile dealerships now, as the return on investment is significant. So why is everybody running after car dealerships and what makes them so profitable?

Acquiring a Car Dealership for Sale

Simply stated, automobile dealerships provide tremendous profits. The numbers are record breaking and in 2013 alone, an average car dealership raked in around $925,000 in profit before tax. That figure is the highest amount without adjusting to inflation, since 1970, when NADA started recording data about the industry.

These figures are extremely tempting for people who want to acquire a car dealership for sale. The recent surge that has taken over the automobile industry has been a real phenomenal and there has never been a better time to invest in car dealerships for sale than today.

Interested in buying a car dealership for sale? Here are just a few steps to help you acquire a dealership today.

Hire an Auto Dealership Broker

Auto dealership brokers often have access to a multitude of dealerships for sale, many of which would never make it to the open market. Based on your desired buying criteria of timeline, franchises, preferred geography, size of dealership, money available to invest, etc. a dealership broker can even solicit on your behalf specific dealerships for sale that fit your criteria. An experienced car dealership broker can also assist you with valuing the prospective dealership, preparing your offer or Letter of Intent, negotiating the price and terms, introducing industry related accountants, lawyers and financing institutions to the team, and managing the selling process to a successful close. Ultimately,a good dealership broker should simplify and facilitate the process of buying or selling a new car dealership.

Do Your Homework

In order to acquire a dealership for sale, you need to start off by doing research, gain knowledge about comparable dealership prices and prepare your proforma to determine how much profit you can generate from the potential acquisition. This research will help you to evaluate your threshold for your return on your investment and help establish the size of dealership you will be able to purchase.

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