Car Dealerships Ford F-150 XLT in Eau Claire WI

Car Dealerships Ford F-150 XLT in Eau Claire WI

February 15, 2018
Posted by: solfa_admin

Most business valuations are driven substantially by the company’s historical financial statements, tempered by other factors such as: location, brand name, management and such. In truth and in fact, the dealership’s balance sheet represents less than half the information necessary to properly value an automobile dealership. The balance sheet is but a starting point from which a number of factors must be How to Approach Used Car Dealers Ford F-150 XLT Eau Claire WI 54701 added and subtracted in order to determine the true value of the assets.

Valuing new car dealerships has to do with projecting future profits and opportunities based upon the “dynamics” of the particular dealership being valued and of the automobile business itself.

The Internal Revenue Service recognizes that valuations include more than financial statements: “The appraiser must exercise his judgment as to the degree Ford F-150 XLT Eau Claire WI 54701 of risk attaching to the business of the corporation which issued the stock, but that judgment must be related to all of the other factors affecting the value.” Revenue Ruling 59-60, Section 3.03.

DEFINITION OF MARKET VALUE

The definition of market value according to the American Institute of Real Estate Appraisers’ Dictionary of Real Estate Appraisal, is: “The most probable price in cash, terms Investing in Car Dealerships – How to Value Them Ford F-150 XLT Eau Claire WI 54701 equivalent to cash, or other precisely revealed terms, for which the appraised property will sell in a competitive market under all conditions requisite to fair sale, with the buyer and seller each acting prudently, knowledgeably, and for self interest, and assuming that neither is under duress.” American Institute of Real Estate Appraisers, The Dictionary of Real Estate Appraisal. (Chicago: American Institute of Ford F-150 XLT Eau Claire WI 54701 Real Estate Appraisers, 1984), 194 195.

In Revenue Ruling 59-60, the Internal Revenue Service defines “fair market value” as follows: “…the price at which the business would change hands between a willing buyer and a willing seller when the former is not under any compulsion to buy and the latter is not under any compulsion to sell, both parties having reasonable knowledge and Ford F-150 XLT Eau Claire WI 54701 relevant facts.”

The purpose of Revenue Ruling 59-60 is 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.

The methods discussed in the Revenue Ruling apply to the valuation of corporate stocks on which market quotations are either unavailable or are of such scarcity that they do not Ford F-150 XLT Eau Claire WI 54701 reflect the fair market value.

The Ruling goes on to state that no set formula can be devised to determine fair market value of closely held stocks and that the value will depend upon such considerations as:

(a) The nature of the business and the history of the enterprise from its inception.

(b) The economic outlook in general and the condition and outlook of Ford F-150 XLT Eau Claire WI 54701 the specific industry in particular.

(c) The book value of the stock and the financial condition of the business.

(d) The earnings capacity of the company.

(e) The dividend-paying capacity. The ability to pay dividends is often more important than a company’s history of distributing cash to shareholders, especially when valuing controlling interests.

(f) Whether or not the enterprise has goodwill or Ford F-150 XLT Eau Claire WI 54701 other intangible value.

(g) Sales of the stock and the size of the block of stock to be valued.

(h) The market price of stocks of corporations engaged in the same or a similar line of business having their stocks actively traded in a free and open market, either on an exchange or over-the-counter. With respect to an individual dealership sale, the Ford F-150 XLT Eau Claire WI 54701 best comparable is the amount the public company paid or received for buying or selling a similar dealership, not what the public company’s stock value or earnings multiple, per se, that is reflected on the stock exchange.

In practice, in arriving at the fair market value of a new car dealership, several different formulas have been used:

1. Return on Investment (or earnings valuation) Ford F-150 XLT Eau Claire WI 54701 Formula: The value of a business to a particular purchaser based upon a return on investment analysis. This value varies from purchaser to purchaser, according to the purchaser’s investment criterion, and it may or may not reflect fair market value. The National Automobile Dealers Association (NADA) refers to this value as “Investment Value.” A Dealer Guide to Valuing an Automobile Dealership, NADA Ford F-150 XLT Eau Claire WI 54701 June 1995, Revised July 2000.

The capitalization rate is determined by the stability of the dealership’s earnings and the risk involved in the automobile business at the time of sale, investment, or valuation. This method is highly subjective as the capitalization rate is based upon the particular appraiser’s perception of the risk of the business; consequently, the lower the appraiser perceives the risk, Ford F-150 XLT Eau Claire WI 54701 the lower will be the capitalization rate and the higher will be the price he would expect a potential purchaser to pay for the business.

In short, the capitalization rate is the appraiser’s opinion as to a rate of return on investment that would motivate a prospective purchaser to buy the dealership. Considerations include those specified in Revenue Ruling 59-60, as well as Ford F-150 XLT Eau Claire WI 54701 available rate of return on alternative investments.

2. Adjusted Net Worth Formula: Net worth of the company, adjusted to reflect the appraised value of the assets used in the day to day operations of a business, assuming that the user or purchaser will continue to make use of the assets. To this “net worth” value will be added blue sky or goodwill, if Ford F-150 XLT Eau Claire WI 54701 any. The “Adjusted Net Worth Formula” is the most common method used in purchasing and selling a new car dealership.

3. Orderly Liquidation Formula. This method values the assets as if all of them had to be sold – not at a “fire sale,” but in an orderly manner and without time constraints. Normally, if the dealership is profitable, some value will still Ford F-150 XLT Eau Claire WI 54701 be placed upon goodwill.

4. Forced Liquidation. The lowest of all values, forced liquidation means that all of the assets must be sold at a forced sale such as an auction, creditors’ sale or by order of a bankruptcy court. A bankruptcy proceeding regarding a new car dealership almost never brings goodwill. This might be the most appropriate formula if the dealership has Ford F-150 XLT Eau Claire WI 54701 no lease (or only a short term remaining on its lease) and cannot, as a practical matter, relocate.

5. Income Formula. The income formula is basically taking the store’s earnings and multiplying it by an appropriated capitalization rate. The trick here is the definition of “earnings.” In determining “earnings” a perspective purchase could use any combination of the following:

(a) current earnings

(b) average Ford F-150 XLT Eau Claire WI 54701 earnings – add the last five years together and divide by 5

(c) weighted average earnings – usually an inverted weight with the current year multiplied by five, last year by four, the year before last by three, four years ago by two, five years ago by one, then adding them together and dividing by 15

(d) cash flow – net income Ford F-150 XLT Eau Claire WI 54701 plus agreed add-backs such as depreciation, LIFO, personal expenses, excess bonuses and such

(e) forecasted earnings – future projected earnings discounted to present day value.

6. Fair Value. NADA also refers to a third value in addition to “Market Value” “Investment Value,” which it calls “Fair Value.” NADA describes “Fair Value” as being “…primarily used when a minority shareholder objects to a proposed Ford F-150 XLT Eau Claire WI 54701 sale of the company in assessing liquidating damages.” and defines it as: “The value of the minority interest immediately before the transaction to which the dissenter objects, excluding any appreciation or depreciation in anticipation of the transaction and without reference to either a minority or non-marketability discount.”

The NADA guide states: It is not common for auto dealers to run across this particular Ford F-150 XLT Eau Claire WI 54701 valuation standard. This author has never used, nor has ever seen this value used with respect to valuing automobile dealerships.

As can be seen in this report, this author in discussing valuations excludes what NADA describes as “Fair Value”.

7. The Greater Fool Theory. The National Automobile Dealers Association publication (A Dealer Guide to Valuing an Automobile Dealership, NADA June 1995), bemuses, in part: Ford F-150 XLT Eau Claire WI 54701 “A Rule of Thumb is more properly referred to as a ‘greater fool theory.’ It is not ‘valuation theory, however.” (In its “Valuing an Automobile Dealership: Update 2004” NADA dropped the reference to “fool” and simply states that the theory is “. . . rarely based upon sound economic or valuation theory,” but advises sellers to “Go for it, and maybe someone Ford F-150 XLT Eau Claire WI 54701 will be stupid enough to pay [it].”

The considerations for valuing new car dealerships are more complex than those used for valuing most other businesses. Dynamics such as the unique requirements of automobile manufactures and distributors can limit the amount of monies that may be paid for a dealership, regardless of what perspective purchasers may offer to pay for the store.

Therefore, the value Ford F-150 XLT Eau Claire WI 54701 of a new car dealership varies based upon the needs and ability of the purchaser and, consequently, the same dealership could have two different values to two different purchaser and both values would be correct.

Thus, our valuation of the subject dealership should be considered in the context and limitations of the facts and history of new car dealership sales as delineated herein.

Ford F-150 XLT Eau Claire WI 54701

Business Results 1 - 10 of 20

Eau Claire Automotive Group



Crossroads Auto Sales of Eau Claire, LLC



Ken Vance Motors



Eau Claire Chrysler Dodge Jeep Ram



Prestige Kia



Krazy Mike's Car and Truck



Ranney's Auto Sales & Services



Chilson Subaru



Eau Claire Nissan



Capital Motor Company



  • Car Dealerships Nissan Maxima SV Sport in Eleva WI
  • Car Dealerships Chevrolet Silverado LTZ in Eau Galle WI
  • Car Dealerships Kia Sportage LX in Downsville WI
  • Car Dealerships Acura TL AWD in Eau Galle WI
  • Car Dealerships Chevrolet Traverse LS in Colfax WI
  • Car Dealerships Acura TL AWD in Osseo WI
  • Car Dealerships Ford Fusion TITANIUM in Downsville WI
  • Car Dealerships Ford Escape TITANIUM in Wheeler WI
  • Car Dealerships Nissan Versa SV in Eau Galle WI
  • Car Dealerships Nissan Versa SV in Menomonie WI
  • 30 Vehicles available

    Sort by:
    9
    Used 2015 GMC Sierra
    Mileage
    43814 mi
    Fuel type
    Gasoline
    Distance
    View more
    9
    Used 2015 Chevrolet Silverado
    Mileage
    20071 mi
    Fuel type
    Gasoline
    Distance
    View more
    9
    Used 2015 Nissan Altima
    Mileage
    33482 mi
    Fuel type
    Gasoline
    Distance
    View more
    9
    Used 2014 Lexus Is 250
    Mileage
    3430 mi
    Fuel type
    Gasoline
    Distance
    View more
    9
    New 2017 ARGO Frontier 8×8
    Fuel type
    Gasoline
    Distance
    View more
    9
    New 2017 ARGO Frontier 6×6
    Fuel type
    Gasoline
    Distance
    View more
    9
    Used 2014 Chevrolet Silverado
    Mileage
    37268 mi
    Fuel type
    Gasoline/e
    Distance
    View more
    9
    Used 2014 Nissan Maxima
    Mileage
    32894 mi
    Fuel type
    Gasoline
    Distance
    View more
    9
    Used 2015 Nissan Altima
    Mileage
    45667 mi
    Fuel type
    Gasoline
    Distance
    View more
    9
    Used 2015 Nissan Sentra
    Mileage
    30333 mi
    Fuel type
    Gasoline
    Distance
    View more
    9
    Used 2014 Ford Escape
    Mileage
    10776 mi
    Fuel type
    Gasoline
    Distance
    View more
    9
    Used 2015 Ford Fusion
    Mileage
    17575 mi
    Fuel type
    Gasoline
    Distance
    View more
    9
    Used 2015 Nissan Sentra
    Mileage
    13077 mi
    Fuel type
    Gasoline
    Distance
    View more
    9
    Used 2014 Ford F-150
    Mileage
    46224 mi
    Fuel type
    Gasoline/e
    Distance
    View more
    9
    Used 2014 Ford F-150
    Mileage
    51894 mi
    Fuel type
    Gasoline
    Distance
    View more
    9
    Used 2014 Ford Escape
    Mileage
    45651 mi
    Fuel type
    Gasoline
    Distance
    View more
    9
    Used 2014 Nissan Versa
    Mileage
    32707 mi
    Fuel type
    Gasoline
    Distance
    View more
    9
    Used 2014 Nissan Maxima
    Mileage
    29386 mi
    Fuel type
    Gasoline
    Distance
    View more
    9
    Used 2014 Nissan Maxima
    Mileage
    26013 mi
    Fuel type
    Gasoline
    Distance
    View more
    9
    Used 2014 Kia Sportage
    Mileage
    34437 mi
    Fuel type
    Gasoline
    Distance
    View more
    9
    Used 2014 Ford Fusion
    Mileage
    36034 mi
    Fuel type
    Gasoline
    Distance
    View more
    9
    Used 2014 Ford Fusion
    Mileage
    34555 mi
    Fuel type
    Gasoline
    Distance
    View more
    9
    Used 2014 Nissan Altima
    Mileage
    30933 mi
    Fuel type
    Gasoline
    Distance
    View more
    9
    Used 2014 Nissan Altima
    Mileage
    33456 mi
    Fuel type
    Gasoline
    Distance
    View more
    9
    Used 2014 Nissan Pathfinder
    Mileage
    33913 mi
    Fuel type
    Gasoline
    Distance
    View more
    9
    Used 2014 Nissan Altima
    Mileage
    34028 mi
    Fuel type
    Gasoline
    Distance
    View more
    9
    Used 2013 Nissan Maxima
    Mileage
    34308 mi
    Fuel type
    Gasoline
    Distance
    View more
    9
    Used 2012 Honda Cr-v
    Mileage
    76048 mi
    Fuel type
    Gasoline
    Distance
    View more
    9
    Used 2015 Toyota Corolla
    Mileage
    22201 mi
    Fuel type
    Gasoline
    Distance
    View more
    9
    Used 2014 Ford Focus
    Mileage
    44306 mi
    Fuel type
    Gasoline
    Distance
    View more
    Show all
    Category:

    Car Dealerships Ford F-150 XLT in Eau Claire WI

    February 15, 2018
    Posted by: solfa_admin

    If you or anyone you know is thinking of buying a new car, then here are just a few of the many tricks used by car dealers for you to look out for:

    Bait and switch

    The car dealer advertises cars offering great deals. But when you get to the showroom, either the cars featured in the ads have already been supposedly Car Dealerships: The Difference Between Pre-Owned and a Clunker Ford F-150 XLT Eau Claire WI 54701 or actually sold so you are offered a different, usually pricier, option. Or else, the salesperson skilfully steers you away from the lower price model to one with lots of extra bells and whistles which, of course, is more expensive.

    The Slowdown

    In most sales situations, the seller wants to get you through the sales process as fast as possible so they Ford F-150 XLT Eau Claire WI 54701 can close the sale and get their commission. But many car dealers take an opposite approach. They want to keep you for an hour to an hour and a half. They know that many customers feel uncomfortable in a car dealership and so the longer they keep you, the easier it is to sell you all kinds of expensive extras as How to Approach Used Car Dealers Ford F-150 XLT Eau Claire WI 54701 you’ll start agreeing to buy things just to complete the deal and get out.

    Front-of-shop and Backending

    Car sellers split the car selling process into two distinct phases. In front-of-shop they sell you the car. But they make surprisingly little profit on the car itself. The big money is made during what they call backending where they sell you all sorts of Ford F-150 XLT Eau Claire WI 54701 extremely profitable extras – special treatments, long-term warranties, GAP insurance and so on. Once you’ve agreed a price for the car, the salesperson will take you to an office to ‘do the paperwork’. It’s not unusual for the buyer to emerge almost an hour later dazed at all the extras they’ve been sold.

    One Step Negotiation

    In the West, we often feel Ford F-150 XLT Eau Claire WI 54701 uncomfortable haggling over price as we’re used to prices for most of the things we buy being clear and fixed. The car salesman knows this and will often give us some small price cut or concession in the knowledge that we’ll probably be relieved to have got something off the price and so will do the deal. Very few people will Ford F-150 XLT Eau Claire WI 54701 do two- three- and even four-step negotiations to push the price down further.

    Absent Authority

    This is a classic sales trick. If we try to bargain too hard, the salesman might say something like, ‘look, I can’t possibly cut the price any further. But I’ll tell you what I can do. I’ll go and talk to my sales manager and see Ford F-150 XLT Eau Claire WI 54701 what he says’. Off they’ll go to supposedly fight on your behalf with the sales manager. They might be away for five or even ten minutes – the longer this is, the more it looks like they’ve really been battling away to get you a better deal. Then they’ll come back with some further price cut or concession. The buyer’s problem Ford F-150 XLT Eau Claire WI 54701 is that they can’t negotiate any further as they can’t talk to the sales manager – the absent authority.

    Price cushioning

    If we’re paying for the car in monthly instalments, the salesperson will seldom mention the real total price we’re actually going to pay as we might be shocked by how much more this is than the sales price of the car. Ford F-150 XLT Eau Claire WI 54701 Instead they price cushion by only talking about the size of the monthly payments which makes the car seem more affordable. Moreover, they can reduce the size of our monthly payments by spreading them out over a longer time. Price cushioning also makes it easier for the seller to get us to buy lots of extras by saying something like, ‘you’ll Ford F-150 XLT Eau Claire WI 54701 get a long-term warranty for the price of a cup of coffee a month’ rather than focusing too much on the total cost of the warranty.

    The Sneer

    If a buyer is hesitating over the price the seller can offer to show them a cheaper model, thereby implying the buyer is too much of a skinflint to buy a quality car. This Ford F-150 XLT Eau Claire WI 54701 can be particularly effective – and embarrassing for the buyer – when a buyer’s partner or children are with them.

    The Law of Contrast

    This is very useful during the backending phase of the sale. In comparison to the cost of the car, all the extremely profitable extras the salesperson pushes will seem cheap. So someone, who might try to save a Ford F-150 XLT Eau Claire WI 54701 few pounds or even pence when doing their weekly supermarket shop, might end up paying £400 or more for GAP insurance – insurance which covers you for the difference between a car’s value and what your insurance company might pay if the car is stolen or written off – when that insurance probably costs the car dealer only £40 or less

    Ford F-150 XLT Eau Claire WI 54701

    Business Results 1 - 10 of 20

    Eau Claire Automotive Group



    Crossroads Auto Sales of Eau Claire, LLC



    Ken Vance Motors



    Eau Claire Chrysler Dodge Jeep Ram



    Prestige Kia



    Krazy Mike's Car and Truck



    Ranney's Auto Sales & Services



    Chilson Subaru



    Eau Claire Nissan



    Capital Motor Company



  • Car Dealerships Ford F-150 FX4 in Sand Creek WI
  • Car Dealerships Nissan Maxima 3.5 SV in Ridgeland WI
  • Car Dealerships Nissan Altima 2.5 S in Fall Creek WI
  • Car Dealerships Nissan Altima 2.5 SV in Eleva WI
  • Car Dealerships Chevrolet Colorado Z71 in Menomonie WI
  • Car Dealerships Nissan Versa Note SV in Cornell WI
  • Car Dealerships Nissan Altima 2.5 S in Cornell WI
  • Car Dealerships Chevrolet Silverado K1500 LT in Menomonie WI
  • Car Dealerships Ford F-150 XLT in Bloomer WI
  • Car Dealerships GMC Sierra K1500 SLE in Mondovi WI
  • 30 Vehicles available

    Sort by:
    9
    Used 2015 GMC Sierra
    Mileage
    43814 mi
    Fuel type
    Gasoline
    Distance
    View more
    9
    Used 2015 Chevrolet Silverado
    Mileage
    20071 mi
    Fuel type
    Gasoline
    Distance
    View more
    9
    Used 2015 Nissan Altima
    Mileage
    33482 mi
    Fuel type
    Gasoline
    Distance
    View more
    9
    Used 2014 Lexus Is 250
    Mileage
    3430 mi
    Fuel type
    Gasoline
    Distance
    View more
    9
    New 2017 ARGO Frontier 8×8
    Fuel type
    Gasoline
    Distance
    View more
    9
    New 2017 ARGO Frontier 6×6
    Fuel type
    Gasoline
    Distance
    View more
    9
    Used 2014 Chevrolet Silverado
    Mileage
    37268 mi
    Fuel type
    Gasoline/e
    Distance
    View more
    9
    Used 2014 Nissan Maxima
    Mileage
    32894 mi
    Fuel type
    Gasoline
    Distance
    View more
    9
    Used 2015 Nissan Altima
    Mileage
    45667 mi
    Fuel type
    Gasoline
    Distance
    View more
    9
    Used 2015 Nissan Sentra
    Mileage
    30333 mi
    Fuel type
    Gasoline
    Distance
    View more
    9
    Used 2014 Ford Escape
    Mileage
    10776 mi
    Fuel type
    Gasoline
    Distance
    View more
    9
    Used 2015 Ford Fusion
    Mileage
    17575 mi
    Fuel type
    Gasoline
    Distance
    View more
    9
    Used 2015 Nissan Sentra
    Mileage
    13077 mi
    Fuel type
    Gasoline
    Distance
    View more
    9
    Used 2014 Ford F-150
    Mileage
    46224 mi
    Fuel type
    Gasoline/e
    Distance
    View more
    9
    Used 2014 Ford F-150
    Mileage
    51894 mi
    Fuel type
    Gasoline
    Distance
    View more
    9
    Used 2014 Ford Escape
    Mileage
    45651 mi
    Fuel type
    Gasoline
    Distance
    View more
    9
    Used 2014 Nissan Versa
    Mileage
    32707 mi
    Fuel type
    Gasoline
    Distance
    View more
    9
    Used 2014 Nissan Maxima
    Mileage
    29386 mi
    Fuel type
    Gasoline
    Distance
    View more
    9
    Used 2014 Nissan Maxima
    Mileage
    26013 mi
    Fuel type
    Gasoline
    Distance
    View more
    9
    Used 2014 Kia Sportage
    Mileage
    34437 mi
    Fuel type
    Gasoline
    Distance
    View more
    9
    Used 2014 Ford Fusion
    Mileage
    36034 mi
    Fuel type
    Gasoline
    Distance
    View more
    9
    Used 2014 Ford Fusion
    Mileage
    34555 mi
    Fuel type
    Gasoline
    Distance
    View more
    9
    Used 2014 Nissan Altima
    Mileage
    30933 mi
    Fuel type
    Gasoline
    Distance
    View more
    9
    Used 2014 Nissan Altima
    Mileage
    33456 mi
    Fuel type
    Gasoline
    Distance
    View more
    9
    Used 2014 Nissan Pathfinder
    Mileage
    33913 mi
    Fuel type
    Gasoline
    Distance
    View more
    9
    Used 2014 Nissan Altima
    Mileage
    34028 mi
    Fuel type
    Gasoline
    Distance
    View more
    9
    Used 2013 Nissan Maxima
    Mileage
    34308 mi
    Fuel type
    Gasoline
    Distance
    View more
    9
    Used 2012 Honda Cr-v
    Mileage
    76048 mi
    Fuel type
    Gasoline
    Distance
    View more
    9
    Used 2015 Toyota Corolla
    Mileage
    22201 mi
    Fuel type
    Gasoline
    Distance
    View more
    9
    Used 2014 Ford Focus
    Mileage
    44306 mi
    Fuel type
    Gasoline
    Distance
    View more
    Show all
    Category: