Specialty Auto Car Dealership – Online Client Base for Difficult to Obtain Vehicles!

Specialty Auto Car Dealership – Online Client Base for Difficult to Obtain Vehicles!

Los Angeles, CA


Asking 
$600,000
Gross Revenue 
$4,517,024
Potential Cash Flow 
$244,375

This specialty appointment only auto dealership focuses on difficult to obtain vehicles that garner national attention and therefore, are often sold site-unseen across the country. To be clear, the vehicles are not necessarily the most-costly, exotic or vintage, but rather they tend to be rare makes and models of premium luxury and sports cars. Oftentimes the nuance that distinguishes the inventory may be its color scheme, interior, package, etc. As a result, the dealership can charge premium pricing, is not relegated to a local client base, and is able to work with dealers who desire the difficult to obtain inventory.

Inventory 
$800,000 - $1,000,000

Accounts Receivable Included in Asking
No

Facilities

This 5,000 plus square foot showroom and warehouse leases for an attractive $4,000 per month on a flexible lease. The dealership typically has $800k - $1.0 ml in floored inventory and boasts relationships with 10-20 banks for fleet financing. While the business model does not come with massive barrier to entry, the company’s crown jewels are its floor plan banking relationships (which took 4-5 years of stellar performance to obtain, but that are critical to quickly sourcing attractive inventory), top search engine placement and history of 100s of 5 star reviews and recurring satisfied historical clients and potential future client following. Of course, a buyer will learn how to replicate the seller’s ability to predict what models will have excess demand, maintain a market pulse, be able to efficiently scan the market for availability and not only obtain inventory, but ultimately effectively sell it!


Competition

While competition exits in all aspects of new and used auto sales, this dealership sets itself apart by specializing in hard-to-get inventory that has built-in demand due to scarcity. As a result, the tables are turned on the typical dealer’s competitive metrics such as inventory cost, location and sales skills. Rather, the key to this business’s success are the ability to identify and obtain desirable inventory (which the seller holds can be easily learned for those with a penchant for autos), employ attractive fleet financing options, achieve top online marketing placement, amass dealer contacts, built a strong reputation and create and maintain a recognizable market presence. This enterprise was ‘built to sell’ by focusing on the latter success factors, with an emphasis on simplicity and operational ease. In fact, the owner can operate the company solely by himself for extended periods of time from anywhere in the world!


Growth & Expansion

This highly flexible business model lends itself to be scaled in any number of directions. Due to the nature of demand for their vehicles, they 60%-70% of sales occur out of state which eliminates the need to operate from the same location or even state. The average vehicle has a 40-50 day turn time, which is key to maximizing the dealer’s throughput. The company may increase their inventory by selling on consignment, which they avoid due to increased hassle (due to the additional touchpoint) coupled with lower profit margins, but the option remains available. They can also shift focus to cater to the international market, which they already excel in (Asia & South Pacific), but similarly shy away from due slightly to increased hassle. Finally, the seller prefers to be a simple and efficient one person shop, with separate contractors brought in for detailing and shipping, however new management may opt to scale the business to include an inventory sourcing specialist, marketing people and additional salespersons. Interestingly, contrary to the new and used car salesperson stereotypes, they do feel that sales skills are tantamount to success as buyers typically highly desire the coveted inventory. As a result, the seller feels that basic customer service skills and ability to process orders and logistics are more important than “selling”.


Support & Training

Seller will train for 2 weeks at 20 hours per week or as negotiated


Reason for Selling

Personal


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