Car Dealerships Chevrolet Silverado K1500 LT in Elk Mound WI

Car Dealerships Chevrolet Silverado K1500 LT in Elk Mound WI

February 15, 2018
Posted by: solfa_admin

There is never a wrong time to buy a car dealership, only a wrong way to buy one.

In 2009 there have been dealerships (both domestic and import) that have made over half a million dollars in one month, yet the majority of the pundits said that 2009 was not the time to buy a dealership.

Remember “If you wait for perfect conditions, you will never get anything done.” Ecclesiastes 11:4. It is not the “conditions” Auto Dealerships – The Sales Dept Sells the First Car Chevrolet Silverado K1500 LT Elk Mound WI 54739 that count; it is your “analysis.” The fact is that most car dealerships that closed in 2009 were bought or established during what the pundits now describe as “the good times.” The times when owners and the experts lamented were “the right times” to buy and build.

Case in point: In 2008 Automotive News ran a front page story on a fellow that was building a Toyota dealership on the freeway, across from the Oakland Chevrolet Silverado K1500 LT Elk Mound WI 54739 Coliseum — a $35 million store, with five floors and a four-story glass showroom. The experts proclaimed about the dealer “… has a broader vision about the relationship between real estate and car dealers than you would ordinarily find.”

On February 24, 2009 The Oakland Tribune reported: “New Toyota dealership in Oakland closes”. In that article the dealership’s customer relations manager lamented: “I’m kind of in a state of shock because we thought we had 5 Perks of Buying From a Car Dealership Chevrolet Silverado K1500 LT Elk Mound WI 54739 such a bright and opportunistic future here, and with this, it just leaves an empty taste… ”

When one analyzes that situation, the dealership was supposed to fail.

For a plethora of reasons, not the least of which was the store’s rent factor, the dealership’s success would have been contrary to the laws of nature. Analyzing that situation, however, is left for another article. For this article, the object lesson learned is: Even though the factory Chevrolet Silverado K1500 LT Elk Mound WI 54739 approves a transaction, the lenders finance it and the trade publications applaud it, those endorsements provide no guarantee a dealership is going to succeed. Having said that, there are many buyers who will still believe those endorsements mean success.

With the epidemic of lawsuits today, factories and lenders cannot give business advice because if the dealership did not succeed, it is the factories and lenders that will get sued. Consequently, one must rely on oneself Chevrolet Silverado K1500 LT Elk Mound WI 54739 and advisers that are not afraid to contradict the boss.

As an aside, be careful not to associate with habitual “deal-breakers.” Some advisers are perpetual naysayers because advisers do not get sued for telling a client not to do a deal. They only get sued when a client gets into a deal that goes sour because it is never the client’s fault. It is the bank, the factory, the accountant, the lawyer, the business advisor Chevrolet Silverado K1500 LT Elk Mound WI 54739 (anyone other than the client) that is to blame.

The bottom-line is that there are two critical factors in buying an automobile dealership that will help ensure success for the long term: (1) How it is bought; and (2) How it is managed.

Each factor has a story, but those are the two keys. How the dealership is bought and how it is run will determine its long-term success or failure. We say “long-term” because car Chevrolet Silverado K1500 LT Elk Mound WI 54739 dealerships provide enough cash-flow that some deals could take five years to fold.

Buying a Car Dealership

What is the right way to buy a car dealership in bad economic times?

In the “good times,” buyers were paying premiums for dealerships, based upon brand names, pretty buildings, nice locations, and so forth. The fact is, in good times or bad, dealerships should be valued in the same manner: by how much the buyer expects to earn after Chevrolet Silverado K1500 LT Elk Mound WI 54739 the purchase. In other words, upon expected ROI (return on investment) — not the brand, or the building, or the location.

Determining what a store can earn after its purchase encompasses more than math. Regardless of how often the “multiple of earnings theory” has been proved wrong, members and associates of the trade still perpetuate the myth that the purchase of a car dealership can be that effortless.

As a natural consequence of the ROI method, Chevrolet Silverado K1500 LT Elk Mound WI 54739 purchase prices will fluctuate because one would tend to expect to make more during “good” times, versus “bad.” Therefore, when one states that the values for blue sky or goodwill are dropping, their statement has nothing to do with the “value” of the dealership. Furthermore, there is no information in the foregoing statement to help one decide a reasonable value to pay for a dealership. Rules of thumb are only guides. Guides are good Chevrolet Silverado K1500 LT Elk Mound WI 54739 servants, but bad masters.

If a dealer is going under and throws a prospective purchaser the keys to the building and says: “It’s yours. I just want out.” That act does not make the dealership worth more or less. The questions a buyer must ask are– (a)” what is it going to cost me to open the doors?” and (b) “what do I think I will earn after I own the store?” In other words: Chevrolet Silverado K1500 LT Elk Mound WI 54739 “What is my expected return on the investment?”

At one time there was a dealer group in Colorado that presented an offer for the existing dealer to pay them (the buyer) $2,000,000 for them to take-over the stores. The offer was based upon projections of what the stores would lose while buyer tried to turn them around. The seller refused and ended-up losing several million more before the stores closed. The dealerships properties were eventually Chevrolet Silverado K1500 LT Elk Mound WI 54739 sold to a church.

A good checklist for valuing car dealerships can be found in IRS Revenue Ruling 59-60, published by the Internal Revenue Service in 1959. While the ruling (59-60) was intended to outline and review in general the approach, methods and factors to be considered in valuing shares of the capital stock of closely held corporations for estate tax and gift tax purposes, the methods discussed are applicable to valuing an automobile dealership Chevrolet Silverado K1500 LT Elk Mound WI 54739 and valuing blue sky in an asset sale simply by backing-out the amount of the stock valuation attributable to goodwill/blue sky.

The Five Biggest Mistakes Buyers of Automobile Dealerships Make:

1. Thinking that when they verify earnings they have completed a major task. The truth is, what the seller made or lost does not matter. A plethora of details and formulas need to be applied to determine what the new owner can net. What rent Chevrolet Silverado K1500 LT Elk Mound WI 54739 factor PNUR can the store afford? Do those numbers correlate to the percentage of gross requirements?

2. Overestimating vehicle sales projections. The first question is: “What can the new owner realistically retail?” We have seen too many dealerships that went under because the buyer could not accurately predict potential sales. On more than one occasion we have seen factories and lenders approve dealerships where the prospective purchasers projected sales volumes that exceeded the volume of Chevrolet Silverado K1500 LT Elk Mound WI 54739 the area’s historical sales leaders.

3. Famous buyers thinking their names alone can turn-around dealerships or sell cars. We can name more unsuccessful, former car dealers that are famous, than successful car dealers that are famous. We have one photo that depicts a famous athlete getting a business award from the President of the United States. He went to the White House and received the award the year before the factory closed his stores. Either Chevrolet Silverado K1500 LT Elk Mound WI 54739 nobody saw it coming, or nobody cared.

4. Thinking that buying a store at a low or zero multiple of earnings means they got a bargain. The biggest misconception of a bargain is when the factory awards a new point. Most people think they got something for nothing. They really did not. The ones that do succeed, however, usually succeed because of the timing and the location — not because of the dealer.

The fact is, Chevrolet Silverado K1500 LT Elk Mound WI 54739 it takes about a year to build the service department of a new point, yet the dealer must capitalize the store as though it were already operating on 8-cylinders. In many instances, a new point suffers through months of losses until, if ever, it finally becomes a successful store. Those losses are “blue sky.” In other instances, it is the second owner that makes a go of it and in some instances, such as Chevrolet Silverado K1500 LT Elk Mound WI 54739 the Englewood store mentioned above, the point goes away.

The savvy purchaser understands there is a value to buying a dealership that has its number is in the phone book, a loyal service base and repeat customers. The main value is that the day after the store is sold there are people lined-up for service, people buying parts and customers coming back to the store. That is worth a bonus (blue sky) to the owner Chevrolet Silverado K1500 LT Elk Mound WI 54739 even if the store has been losing money.

5. Thinking there is some “magic” formula that will make a store successful. The only formula that will work most of the time is a mixture of hard work and knowledge of the retail automotive business. Each of those words is an operative word: “retail” and “automotive.” Knowledge of another business is not enough.

One last bit of advice to rookies. When making changes in the retail automotive Chevrolet Silverado K1500 LT Elk Mound WI 54739 business act swiftly. Erasers are made because people make mistakes. We have yet to meet the person who has never used one, although in today’s world one might substitute the word “eraser” with “backspace” or “delete. When a mistake is made, the trick is to analyze, decide and act quickly. Do not hesitate to correct errors and bad decisions.

That advice has been around for thousands of years, both in the proverbs one learns as Chevrolet Silverado K1500 LT Elk Mound WI 54739 a child (such as “A stitch in time, saves nine” and “He who hesitates is lost,” and so forth), and in Ecclesiastes 12:12 “But, my son, be warned — there is no end of opinions ready to be expressed. Studying them can go on forever and become very exhausting!”

In summation, do not hesitate to buy a car dealership in a bad economy, just buy it correctly. Read the articles referred to above and act Chevrolet Silverado K1500 LT Elk Mound WI 54739 upon them.

“A dealership should be bought for one reason and one reason only — to make money. It should not be bought because it is close to home, because the buyer likes the franchise, because a partner wants to provide a job for a relative or, because the building is attractive. A dealership is purchased to make money and, in order to make money, it has to be “bought right”. A Practical Guide to Chevrolet Silverado K1500 LT Elk Mound WI 54739 Buying and Selling Automobile Dealerships, National Legal Publishing Co. (1989), at page 2-4.

That was written twenty years ago. It was true then and it is true today.

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    Car Dealerships Chevrolet Silverado K1500 LT in Elk Mound WI

    February 15, 2018
    Posted by: solfa_admin

    It’s common these days for car dealerships to be located next to many other similar businesses in “auto rows” or “auto malls.” The economic theory of agglomeration gives credence to this practice, based on the logic that a rising tide raises all ships, all businesses benefit from a single destination for vehicle buying that draws all comers, irrespective of make and model. Then there Investing in Car Dealerships – How to Value Them Chevrolet Silverado K1500 LT Elk Mound WI 54739 are places that buck that trend and eschew every known economic theory. Here are some of the strangest locations and practices for car dealerships.

    British Motor Cars, San Francisco

    This high-end auto emporium is the antithesis of the auto mall ideal. Compared to rows of autos laid out around some suburban interstate cloverleaf where there’s ample room for customers to park and view the inventory, this Chevrolet Silverado K1500 LT Elk Mound WI 54739 establishment is practically hidden. The showroom is located in downtown San Francisco on an extremely busy section of Van Ness Avenue that’s actually collocated with US Route 101. There is no parking to speak of except for metered spots on the streets, and those max out at two hours. If, however, you are serious about buying a vehicle at British Motor Cars, you can Service the Rest Chevrolet Silverado K1500 LT Elk Mound WI 54739 most likely afford to have a limousine drop you off. Inside the slate-gray Greek Revival building lies a cornucopia of exotic and expensive rides. The gilt marble interior is the perfect backdrop to sip a house-made espresso while perusing the selection of high-horsepower Italian speed demons, leather trimmed British mobile palaces, and state-of-the-art German sedans.

    Llanfairpwllgwyngyllgogerychwymdrobwllllantysiliogo-gogoch Autos, Wales

    No, I didn’t just mash my hands against Chevrolet Silverado K1500 LT Elk Mound WI 54739 the keyboard accidentally, that’s the real name of a town in Wales and one of its car dealerships. If you’ve ever spent any time in Wales, or maybe heard people speaking Welsh, it will come as no surprise that this delightfully long and seemingly impossible to pronounce word originates in Western Britain. Welsh is an ancient language descended from the Celtic linguistic family, spoken Chevrolet Silverado K1500 LT Elk Mound WI 54739 on the British Isles for far longer than English. English derives its name from the Angles, a Germanic people. While less than a quarter of the people in Wales speak it fluently, the language still gives its name to many towns and, thus, business establishments. Thankfully, the salesmen at this location are happy to shorten it to just Llanfairpwllgwyngyll.

    Ling’s Cars

    Unlike the other auto dealerships Chevrolet Silverado K1500 LT Elk Mound WI 54739 on this list, Ling’s is actually primarily a leasing business. Unlike other car dealerships anywhere, Ling’s is just flat out weird. Only here can you get an affordable lease on a quality pre-owned vehicle while also buying a dozen farm fresh eggs. Ling’s has a hen house on the premises and collects and sells the eggs as part of the wacky business. If that’s Chevrolet Silverado K1500 LT Elk Mound WI 54739 not enough, the owner has even been known to ride around the premises in a military surplus missile carrier.

    Next time you think the car buying experience is too boring, check out one of these spots!

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    Car Dealerships Chevrolet Silverado K1500 LT in Elk Mound WI

    February 15, 2018
    Posted by: solfa_admin

    There is never a wrong time to buy a car dealership, only a wrong way to buy one.

    In 2009 there have been dealerships (both domestic and import) that have made over half a million dollars in one month, yet the majority of the pundits said that 2009 was not the time to buy a dealership.

    Remember “If you wait for perfect conditions, you will never get anything done.” Ecclesiastes 11:4. It is not the “conditions” Your Best Choice in Car Dealerships Chevrolet Silverado K1500 LT Elk Mound WI 54739 that count; it is your “analysis.” The fact is that most car dealerships that closed in 2009 were bought or established during what the pundits now describe as “the good times.” The times when owners and the experts lamented were “the right times” to buy and build.

    Case in point: In 2008 Automotive News ran a front page story on a fellow that was building a Toyota dealership on the freeway, across from the Oakland Chevrolet Silverado K1500 LT Elk Mound WI 54739 Coliseum — a $35 million store, with five floors and a four-story glass showroom. The experts proclaimed about the dealer “… has a broader vision about the relationship between real estate and car dealers than you would ordinarily find.”

    On February 24, 2009 The Oakland Tribune reported: “New Toyota dealership in Oakland closes”. In that article the dealership’s customer relations manager lamented: “I’m kind of in a state of shock because we thought we had Car Dealerships in the Strangest Places Chevrolet Silverado K1500 LT Elk Mound WI 54739 such a bright and opportunistic future here, and with this, it just leaves an empty taste… ”

    When one analyzes that situation, the dealership was supposed to fail.

    For a plethora of reasons, not the least of which was the store’s rent factor, the dealership’s success would have been contrary to the laws of nature. Analyzing that situation, however, is left for another article. For this article, the object lesson learned is: Even though the factory Chevrolet Silverado K1500 LT Elk Mound WI 54739 approves a transaction, the lenders finance it and the trade publications applaud it, those endorsements provide no guarantee a dealership is going to succeed. Having said that, there are many buyers who will still believe those endorsements mean success.

    With the epidemic of lawsuits today, factories and lenders cannot give business advice because if the dealership did not succeed, it is the factories and lenders that will get sued. Consequently, one must rely on oneself Chevrolet Silverado K1500 LT Elk Mound WI 54739 and advisers that are not afraid to contradict the boss.

    As an aside, be careful not to associate with habitual “deal-breakers.” Some advisers are perpetual naysayers because advisers do not get sued for telling a client not to do a deal. They only get sued when a client gets into a deal that goes sour because it is never the client’s fault. It is the bank, the factory, the accountant, the lawyer, the business advisor Chevrolet Silverado K1500 LT Elk Mound WI 54739 (anyone other than the client) that is to blame.

    The bottom-line is that there are two critical factors in buying an automobile dealership that will help ensure success for the long term: (1) How it is bought; and (2) How it is managed.

    Each factor has a story, but those are the two keys. How the dealership is bought and how it is run will determine its long-term success or failure. We say “long-term” because car Chevrolet Silverado K1500 LT Elk Mound WI 54739 dealerships provide enough cash-flow that some deals could take five years to fold.

    Buying a Car Dealership

    What is the right way to buy a car dealership in bad economic times?

    In the “good times,” buyers were paying premiums for dealerships, based upon brand names, pretty buildings, nice locations, and so forth. The fact is, in good times or bad, dealerships should be valued in the same manner: by how much the buyer expects to earn after Chevrolet Silverado K1500 LT Elk Mound WI 54739 the purchase. In other words, upon expected ROI (return on investment) — not the brand, or the building, or the location.

    Determining what a store can earn after its purchase encompasses more than math. Regardless of how often the “multiple of earnings theory” has been proved wrong, members and associates of the trade still perpetuate the myth that the purchase of a car dealership can be that effortless.

    As a natural consequence of the ROI method, Chevrolet Silverado K1500 LT Elk Mound WI 54739 purchase prices will fluctuate because one would tend to expect to make more during “good” times, versus “bad.” Therefore, when one states that the values for blue sky or goodwill are dropping, their statement has nothing to do with the “value” of the dealership. Furthermore, there is no information in the foregoing statement to help one decide a reasonable value to pay for a dealership. Rules of thumb are only guides. Guides are good Chevrolet Silverado K1500 LT Elk Mound WI 54739 servants, but bad masters.

    If a dealer is going under and throws a prospective purchaser the keys to the building and says: “It’s yours. I just want out.” That act does not make the dealership worth more or less. The questions a buyer must ask are– (a)” what is it going to cost me to open the doors?” and (b) “what do I think I will earn after I own the store?” In other words: Chevrolet Silverado K1500 LT Elk Mound WI 54739 “What is my expected return on the investment?”

    At one time there was a dealer group in Colorado that presented an offer for the existing dealer to pay them (the buyer) $2,000,000 for them to take-over the stores. The offer was based upon projections of what the stores would lose while buyer tried to turn them around. The seller refused and ended-up losing several million more before the stores closed. The dealerships properties were eventually Chevrolet Silverado K1500 LT Elk Mound WI 54739 sold to a church.

    A good checklist for valuing car dealerships can be found in IRS Revenue Ruling 59-60, published by the Internal Revenue Service in 1959. While the ruling (59-60) was intended to outline and review in general the approach, methods and factors to be considered in valuing shares of the capital stock of closely held corporations for estate tax and gift tax purposes, the methods discussed are applicable to valuing an automobile dealership Chevrolet Silverado K1500 LT Elk Mound WI 54739 and valuing blue sky in an asset sale simply by backing-out the amount of the stock valuation attributable to goodwill/blue sky.

    The Five Biggest Mistakes Buyers of Automobile Dealerships Make:

    1. Thinking that when they verify earnings they have completed a major task. The truth is, what the seller made or lost does not matter. A plethora of details and formulas need to be applied to determine what the new owner can net. What rent Chevrolet Silverado K1500 LT Elk Mound WI 54739 factor PNUR can the store afford? Do those numbers correlate to the percentage of gross requirements?

    2. Overestimating vehicle sales projections. The first question is: “What can the new owner realistically retail?” We have seen too many dealerships that went under because the buyer could not accurately predict potential sales. On more than one occasion we have seen factories and lenders approve dealerships where the prospective purchasers projected sales volumes that exceeded the volume of Chevrolet Silverado K1500 LT Elk Mound WI 54739 the area’s historical sales leaders.

    3. Famous buyers thinking their names alone can turn-around dealerships or sell cars. We can name more unsuccessful, former car dealers that are famous, than successful car dealers that are famous. We have one photo that depicts a famous athlete getting a business award from the President of the United States. He went to the White House and received the award the year before the factory closed his stores. Either Chevrolet Silverado K1500 LT Elk Mound WI 54739 nobody saw it coming, or nobody cared.

    4. Thinking that buying a store at a low or zero multiple of earnings means they got a bargain. The biggest misconception of a bargain is when the factory awards a new point. Most people think they got something for nothing. They really did not. The ones that do succeed, however, usually succeed because of the timing and the location — not because of the dealer.

    The fact is, Chevrolet Silverado K1500 LT Elk Mound WI 54739 it takes about a year to build the service department of a new point, yet the dealer must capitalize the store as though it were already operating on 8-cylinders. In many instances, a new point suffers through months of losses until, if ever, it finally becomes a successful store. Those losses are “blue sky.” In other instances, it is the second owner that makes a go of it and in some instances, such as Chevrolet Silverado K1500 LT Elk Mound WI 54739 the Englewood store mentioned above, the point goes away.

    The savvy purchaser understands there is a value to buying a dealership that has its number is in the phone book, a loyal service base and repeat customers. The main value is that the day after the store is sold there are people lined-up for service, people buying parts and customers coming back to the store. That is worth a bonus (blue sky) to the owner Chevrolet Silverado K1500 LT Elk Mound WI 54739 even if the store has been losing money.

    5. Thinking there is some “magic” formula that will make a store successful. The only formula that will work most of the time is a mixture of hard work and knowledge of the retail automotive business. Each of those words is an operative word: “retail” and “automotive.” Knowledge of another business is not enough.

    One last bit of advice to rookies. When making changes in the retail automotive Chevrolet Silverado K1500 LT Elk Mound WI 54739 business act swiftly. Erasers are made because people make mistakes. We have yet to meet the person who has never used one, although in today’s world one might substitute the word “eraser” with “backspace” or “delete. When a mistake is made, the trick is to analyze, decide and act quickly. Do not hesitate to correct errors and bad decisions.

    That advice has been around for thousands of years, both in the proverbs one learns as Chevrolet Silverado K1500 LT Elk Mound WI 54739 a child (such as “A stitch in time, saves nine” and “He who hesitates is lost,” and so forth), and in Ecclesiastes 12:12 “But, my son, be warned — there is no end of opinions ready to be expressed. Studying them can go on forever and become very exhausting!”

    In summation, do not hesitate to buy a car dealership in a bad economy, just buy it correctly. Read the articles referred to above and act Chevrolet Silverado K1500 LT Elk Mound WI 54739 upon them.

    “A dealership should be bought for one reason and one reason only — to make money. It should not be bought because it is close to home, because the buyer likes the franchise, because a partner wants to provide a job for a relative or, because the building is attractive. A dealership is purchased to make money and, in order to make money, it has to be “bought right”. A Practical Guide to Chevrolet Silverado K1500 LT Elk Mound WI 54739 Buying and Selling Automobile Dealerships, National Legal Publishing Co. (1989), at page 2-4.

    That was written twenty years ago. It was true then and it is true today.

    Business Results 1 - 10 of 3

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    • Karen A. Farnsworth

      Karen A. Farnsworth, age 69, of Elk Mound, WI, passed away Sunday, July 15, 2018,at her home in Elk Mound, WI. Karen Ann Walker was born September 13th 1948 in Mulberry AR, the daughter of Raymond Wal...

    • Robert Moats

      Robert E. Moats, 84, of Elk Mound, died peacefully at Comforts of Home in Menomonie, WI, on Monday, May 7, 2018. Robert was born on October 18, 1933, to Bert and Alma (Adams) Moats in Eau Claire. He m...

    • Daryl Spagnoletti

      He was born March 23, 1939 in Eau Claire, WI to Don J. and Donna (Cartwright) Spagnoletti. He was raised in Elk Mound, WI and graduated from Elk Mound High School in 1957. While attending school, Cork...

    • Elk Mound talks to students about consequences of bomb threats

      ELK MOUND, Wi. (WEAU)--Whether it's personal, legal, or educational, the consequences behind initiating a bomb threat are no joke. That's why the Elk Mound School District decided to partner with loca...

    • Addell Louise (Halverson) Dahlen

      Dahlen, Addell Louise (Halverson) born August 8, 1921 to Hjalmer and Lillian (Kohnke) Halverson of Elk Mound, WI, died on June 2, 2017 in Minneapolis, MN. She was preceded in death by her husband Karl ...

    • 2 horses die after falling through pond ice near Elk Mound

      ELK MOUND, Wis. (AP) -- Two horses died when they escaped their enclosure and fell through the ice on a nearby pond near Elk Mound. The Dunn County Sheriff's Office says the horses succumbed to cold, ...

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