Buying a Car Dealership : LUSENET : MMC2 : One Thread

Once this REALLY a good idea? Do you have any financials to show how this would work, even assuming that we could raise the capita

-- Anonymous, November 03, 1999


Financials, no. Is it a good idea. It is if your a car junkie like me. Perfect example; York VW (400 & 401). Average profit per car, (dead cost) varied from $800 to $4000 per car. 25% of gross vehicle profit (not including admin fees and extra charges like rust proof, warranties etc etc) goes to the salesperson. 400 car allocation per year. Worst case scenario 400 X 800 = $320,0000 per annum.

Service: Labour rate $73.00 per hour. Technicians get flat rate Average annual income (saw financials) $978,000 per annum

Parts: 2 trucks running 24hrs aday. Parts for VW, Audi and Porsche. Annual revenue $2,350,000.

Less expenses, rent, taxes, interest charges on the instock inventory, commissions, benefit plans and other ancillary charges approx $700,000 per annum was net profit, split 3 ways.

-- Anonymous, November 03, 1999

Walter--reposting of an e-mail form you

The hottest manufacturers in the next 5 years will be: Volvo (the next best thing to Mercedes imo.) Subaru (comin out of the closet) Mazda ( a resurgence much like Apple computer) Nissan (completely rebuilt within 10 years) Volkswagen (new technology promising) Food for thought. :-)

-- Anonymous, November 10, 1999

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