Car Dealerships Ford Fusion SE in Eleva WI

Car Dealerships Ford Fusion SE in Eleva 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 Automobile Dealerships – Valuing Blue Sky Ford Fusion SE Eleva WI 54738 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 Fusion SE Eleva WI 54738 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 Inside the Buy Here Pay Here Car Dealership Ford Fusion SE Eleva WI 54738 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 Fusion SE Eleva WI 54738 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 Fusion SE Eleva WI 54738 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 Fusion SE Eleva WI 54738 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 Fusion SE Eleva WI 54738 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 Fusion SE Eleva WI 54738 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 Fusion SE Eleva WI 54738 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 Fusion SE Eleva WI 54738 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 Fusion SE Eleva WI 54738 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 Fusion SE Eleva WI 54738 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 Fusion SE Eleva WI 54738

Business Results 1 - 10 of 1

Engens Garage & Auto Sales



Eleva WI - BingNews Search results

  • Underdogs Brown, LoPiccolo lose in second round at Junior Masters

    Shawhan is already looking forward to his next tournament, a Wisconsin Junior Tour event on July 25 at the ... was defeated by No. 17 Drew Severson of Eleva after a two-hole playoff in the second roun...

  • 30631007.pdf

    Condensed Listing COMPLETE GREENHOUSE LIQUIDATION Located: (25837 E Mondovi St, Eleva, WI, 54738) At 4-way stop in Eleva, go East on US Hwy 10 approx. 1 block, site is on right. Watch for NIC auction ...

  • Dale Klevgard

    Dale was born in Mondovi, WI on March 18, 1948 to Leslie and Delores Klevgard. He graduated from Eleva-Strum Central in 1966 and began farming on the family farm in Chimney Rock. Dale married the love ...

  • 60th annual 'Broiler Fest' in Eleva brings in UW Marching Band

    Eleva (WQOW) - An annual festival in Eleva had an extra special ... Of course, local marching bands were a part of the 80 parade entrees, but the University of Wisconsin Marching Band traveled a littl...

  • Martin Sandberg

    Martin (Marty) Lyle Sandberg, 72, of Eleva, WI, went to his eternal home on April 25, 2018. Martin was a resident at the Homeplace in Mondovi, WI, at the time of his death. Martin was born July 4, 194...

  • 2 Wisconsin dogs become Senior Dog Prom finalists

    ELEVA, Wis. (WEAU) -- Life can be ruff sometimes. But when you have fur and have a chance to go to prom, life cannot be any sweeter or rather cuter. A homeless shelter for senior dogs called the Grey ...

  • doris severson

    Doris was a resident of Wisconsin. Funeral service will take place 12 pm noon ... Private burial will be in Lakewood Memorial... Doris Severson passed away in Lincoln, Nebraska. The obituary was featu...

  • Area man builds car in memory of friend

    Eleva, WI (WEAU) --An area man is remembering a friend in an unusual way, all while contributing to a good cause. Broiler Fest in Eleva is a time to let loose and have some fun, but for Steve Kummer, ...

  • UPDATE: 3rd student involved in crash dies

    Gable (age 14) of Strum, WI, was traveling in the 6500 Block of Walnut Road. The vehicle left the roadway and struck a grouping of trees. McKenna K. Johnson (age 13) of Eleva, WI, was a passenger in t...

  • Tragedy on Walnut Road: 3rd teen crash victim dies

    Gable (age 14) of Strum, WI, was traveling in the 6500 Block of Walnut Road. The vehicle left the roadway and struck a grouping of trees. McKenna K. Johnson (age 13) of Eleva ... were driving on Walnu...

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    Car Dealerships Ford Fusion SE in Eleva 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 Ford Fusion SE Eleva WI 54738 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 Ford Fusion SE Eleva WI 54738 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 Five Reasons to Buy a Vehicle At a Car Dealership Ford Fusion SE Eleva WI 54738 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 Ford Fusion SE Eleva WI 54738 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 Ford Fusion SE Eleva WI 54738 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 Ford Fusion SE Eleva WI 54738 (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 Ford Fusion SE Eleva WI 54738 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 Ford Fusion SE Eleva WI 54738 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, Ford Fusion SE Eleva WI 54738 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 Ford Fusion SE Eleva WI 54738 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: Ford Fusion SE Eleva WI 54738 “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 Ford Fusion SE Eleva WI 54738 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 Ford Fusion SE Eleva WI 54738 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 Ford Fusion SE Eleva WI 54738 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 Ford Fusion SE Eleva WI 54738 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 Ford Fusion SE Eleva WI 54738 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, Ford Fusion SE Eleva WI 54738 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 Ford Fusion SE Eleva WI 54738 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 Ford Fusion SE Eleva WI 54738 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 Ford Fusion SE Eleva WI 54738 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 Ford Fusion SE Eleva WI 54738 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 Ford Fusion SE Eleva WI 54738 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 Ford Fusion SE Eleva WI 54738 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 1

    Engens Garage & Auto Sales



    Eleva WI - BingNews Search results

    • Underdogs Brown, LoPiccolo lose in second round at Junior Masters

      Shawhan is already looking forward to his next tournament, a Wisconsin Junior Tour event on July 25 at the ... was defeated by No. 17 Drew Severson of Eleva after a two-hole playoff in the second roun...

    • 30631007.pdf

      Condensed Listing COMPLETE GREENHOUSE LIQUIDATION Located: (25837 E Mondovi St, Eleva, WI, 54738) At 4-way stop in Eleva, go East on US Hwy 10 approx. 1 block, site is on right. Watch for NIC auction ...

    • Dale Klevgard

      Dale was born in Mondovi, WI on March 18, 1948 to Leslie and Delores Klevgard. He graduated from Eleva-Strum Central in 1966 and began farming on the family farm in Chimney Rock. Dale married the love ...

    • 60th annual 'Broiler Fest' in Eleva brings in UW Marching Band

      Eleva (WQOW) - An annual festival in Eleva had an extra special ... Of course, local marching bands were a part of the 80 parade entrees, but the University of Wisconsin Marching Band traveled a littl...

    • Martin Sandberg

      Martin (Marty) Lyle Sandberg, 72, of Eleva, WI, went to his eternal home on April 25, 2018. Martin was a resident at the Homeplace in Mondovi, WI, at the time of his death. Martin was born July 4, 194...

    • 2 Wisconsin dogs become Senior Dog Prom finalists

      ELEVA, Wis. (WEAU) -- Life can be ruff sometimes. But when you have fur and have a chance to go to prom, life cannot be any sweeter or rather cuter. A homeless shelter for senior dogs called the Grey ...

    • doris severson

      Doris was a resident of Wisconsin. Funeral service will take place 12 pm noon ... Private burial will be in Lakewood Memorial... Doris Severson passed away in Lincoln, Nebraska. The obituary was featu...

    • Area man builds car in memory of friend

      Eleva, WI (WEAU) --An area man is remembering a friend in an unusual way, all while contributing to a good cause. Broiler Fest in Eleva is a time to let loose and have some fun, but for Steve Kummer, ...

    • UPDATE: 3rd student involved in crash dies

      Gable (age 14) of Strum, WI, was traveling in the 6500 Block of Walnut Road. The vehicle left the roadway and struck a grouping of trees. McKenna K. Johnson (age 13) of Eleva, WI, was a passenger in t...

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      Gable (age 14) of Strum, WI, was traveling in the 6500 Block of Walnut Road. The vehicle left the roadway and struck a grouping of trees. McKenna K. Johnson (age 13) of Eleva ... were driving on Walnu...

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    Car Dealerships Ford Fusion SE in Eleva WI

    February 15, 2018
    Posted by: solfa_admin

    When purchasing a vehicle, the first question a driver may find themselves asking is, “Should I get a new or used car?” Pre-owned auto purchases are more popular than ever, and rightfully so. Whether this is your first or your fifth auto purchase, the question will always come up. Going with a pre-owned auto has a number of benefits and advantages.

    Lower Cost

    The Inside the Buy Here Pay Here Car Dealership Ford Fusion SE Eleva WI 54738 most obvious benefit of purchasing a pre-owned vehicle is the reduced cost. As of 2015, shoppers saved on average $10,000 by purchasing a pre-owned vehicle as opposed to its factory-fresh counterpart. When purchasing from a reputable car dealership, these savings are much more appealing, as the vehicle is fully inspected, and warranty and repair guarantees are available. Knowing that you are not Ford Fusion SE Eleva WI 54738 getting a clunker is an important consideration of the pre-owned car-buying process, but when it is done right, the savings are especially difficult to pass up.

    Low Commitment

    Savings are important, but so are options. A drawback of purchasing a new auto is that the value depreciates by roughly 40% the second you drive off the lot. If you realize soon down the road Car Dealers’ Sales Tricks Ford Fusion SE Eleva WI 54738 that you are not in love with your new purchase, you’re either stuck with it or going to have to take a substantial loss on the re-sell. With a pre-owned vehicle, this is not the case. If you don’t break even, you can at least expect to sell for very close to what you spent on the car, assuming it is in Ford Fusion SE Eleva WI 54738 the same condition. This is appealing to anyone who likes variety and wants to retain the possibility of trading in for a new auto without paying an arm and a leg.

    Wider Variety

    In addition, pre-owned car shopping offers more variety. Instead of only having the recent catalog to select from in the new auto market, purchasing a pre-owned vehicle opens the door to Ford Fusion SE Eleva WI 54738 a much wider selection. Today, it is not uncommon to find autos dating back as early as the 70s waiting for you on a car dealership’s lot. If you are looking for a classic, a used vehicle can help make that a reality.

    Drawbacks

    While these reasons may be appealing, it is important to remember the trade-off. A new vehicle offers more guarantees in Ford Fusion SE Eleva WI 54738 terms of quality. Since you will be the first driver behind the wheel, there is less of a chance for something to already be wrong with your car, as well as a reduced risk of necessary repairs in the near future. If something does go wrong, a new auto is going to offer better warranties for repairs and replacements. You will also Ford Fusion SE Eleva WI 54738 benefit from better and more advanced parts and materials in your auto, reflecting modern safety regulations and the latest technology of the time.

    It may not be an easy decision, but the choice to buy a pre-owned or new vehicle is one you will be faced with when you arrive at a car dealership. If savings and variety are what you are looking Ford Fusion SE Eleva WI 54738 for, taking the second-hand route is for you!

    Business Results 1 - 10 of 1

    Engens Garage & Auto Sales



    Eleva WI - BingNews Search results

    • Underdogs Brown, LoPiccolo lose in second round at Junior Masters

      Shawhan is already looking forward to his next tournament, a Wisconsin Junior Tour event on July 25 at the ... was defeated by No. 17 Drew Severson of Eleva after a two-hole playoff in the second roun...

    • 30631007.pdf

      Condensed Listing COMPLETE GREENHOUSE LIQUIDATION Located: (25837 E Mondovi St, Eleva, WI, 54738) At 4-way stop in Eleva, go East on US Hwy 10 approx. 1 block, site is on right. Watch for NIC auction ...

    • Dale Klevgard

      Dale was born in Mondovi, WI on March 18, 1948 to Leslie and Delores Klevgard. He graduated from Eleva-Strum Central in 1966 and began farming on the family farm in Chimney Rock. Dale married the love ...

    • 60th annual 'Broiler Fest' in Eleva brings in UW Marching Band

      Eleva (WQOW) - An annual festival in Eleva had an extra special ... Of course, local marching bands were a part of the 80 parade entrees, but the University of Wisconsin Marching Band traveled a littl...

    • Martin Sandberg

      Martin (Marty) Lyle Sandberg, 72, of Eleva, WI, went to his eternal home on April 25, 2018. Martin was a resident at the Homeplace in Mondovi, WI, at the time of his death. Martin was born July 4, 194...

    • 2 Wisconsin dogs become Senior Dog Prom finalists

      ELEVA, Wis. (WEAU) -- Life can be ruff sometimes. But when you have fur and have a chance to go to prom, life cannot be any sweeter or rather cuter. A homeless shelter for senior dogs called the Grey ...

    • doris severson

      Doris was a resident of Wisconsin. Funeral service will take place 12 pm noon ... Private burial will be in Lakewood Memorial... Doris Severson passed away in Lincoln, Nebraska. The obituary was featu...

    • Area man builds car in memory of friend

      Eleva, WI (WEAU) --An area man is remembering a friend in an unusual way, all while contributing to a good cause. Broiler Fest in Eleva is a time to let loose and have some fun, but for Steve Kummer, ...

    • UPDATE: 3rd student involved in crash dies

      Gable (age 14) of Strum, WI, was traveling in the 6500 Block of Walnut Road. The vehicle left the roadway and struck a grouping of trees. McKenna K. Johnson (age 13) of Eleva, WI, was a passenger in t...

    • Tragedy on Walnut Road: 3rd teen crash victim dies

      Gable (age 14) of Strum, WI, was traveling in the 6500 Block of Walnut Road. The vehicle left the roadway and struck a grouping of trees. McKenna K. Johnson (age 13) of Eleva ... were driving on Walnu...

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    Car Dealerships Ford Fusion SE in Eleva 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” 5 Perks of Buying From a Car Dealership Ford Fusion SE Eleva WI 54738 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 Ford Fusion SE Eleva WI 54738 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 Why Car Dealerships Are A Good Thing Ford Fusion SE Eleva WI 54738 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 Ford Fusion SE Eleva WI 54738 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 Ford Fusion SE Eleva WI 54738 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 Ford Fusion SE Eleva WI 54738 (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 Ford Fusion SE Eleva WI 54738 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 Ford Fusion SE Eleva WI 54738 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, Ford Fusion SE Eleva WI 54738 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 Ford Fusion SE Eleva WI 54738 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: Ford Fusion SE Eleva WI 54738 “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 Ford Fusion SE Eleva WI 54738 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 Ford Fusion SE Eleva WI 54738 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 Ford Fusion SE Eleva WI 54738 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 Ford Fusion SE Eleva WI 54738 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 Ford Fusion SE Eleva WI 54738 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, Ford Fusion SE Eleva WI 54738 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 Ford Fusion SE Eleva WI 54738 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 Ford Fusion SE Eleva WI 54738 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 Ford Fusion SE Eleva WI 54738 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 Ford Fusion SE Eleva WI 54738 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 Ford Fusion SE Eleva WI 54738 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 Ford Fusion SE Eleva WI 54738 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 1

    Engens Garage & Auto Sales



    Eleva WI - BingNews Search results

    • Underdogs Brown, LoPiccolo lose in second round at Junior Masters

      Shawhan is already looking forward to his next tournament, a Wisconsin Junior Tour event on July 25 at the ... was defeated by No. 17 Drew Severson of Eleva after a two-hole playoff in the second roun...

    • 30631007.pdf

      Condensed Listing COMPLETE GREENHOUSE LIQUIDATION Located: (25837 E Mondovi St, Eleva, WI, 54738) At 4-way stop in Eleva, go East on US Hwy 10 approx. 1 block, site is on right. Watch for NIC auction ...

    • Dale Klevgard

      Dale was born in Mondovi, WI on March 18, 1948 to Leslie and Delores Klevgard. He graduated from Eleva-Strum Central in 1966 and began farming on the family farm in Chimney Rock. Dale married the love ...

    • 60th annual 'Broiler Fest' in Eleva brings in UW Marching Band

      Eleva (WQOW) - An annual festival in Eleva had an extra special ... Of course, local marching bands were a part of the 80 parade entrees, but the University of Wisconsin Marching Band traveled a littl...

    • Martin Sandberg

      Martin (Marty) Lyle Sandberg, 72, of Eleva, WI, went to his eternal home on April 25, 2018. Martin was a resident at the Homeplace in Mondovi, WI, at the time of his death. Martin was born July 4, 194...

    • 2 Wisconsin dogs become Senior Dog Prom finalists

      ELEVA, Wis. (WEAU) -- Life can be ruff sometimes. But when you have fur and have a chance to go to prom, life cannot be any sweeter or rather cuter. A homeless shelter for senior dogs called the Grey ...

    • doris severson

      Doris was a resident of Wisconsin. Funeral service will take place 12 pm noon ... Private burial will be in Lakewood Memorial... Doris Severson passed away in Lincoln, Nebraska. The obituary was featu...

    • Area man builds car in memory of friend

      Eleva, WI (WEAU) --An area man is remembering a friend in an unusual way, all while contributing to a good cause. Broiler Fest in Eleva is a time to let loose and have some fun, but for Steve Kummer, ...

    • UPDATE: 3rd student involved in crash dies

      Gable (age 14) of Strum, WI, was traveling in the 6500 Block of Walnut Road. The vehicle left the roadway and struck a grouping of trees. McKenna K. Johnson (age 13) of Eleva, WI, was a passenger in t...

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      Gable (age 14) of Strum, WI, was traveling in the 6500 Block of Walnut Road. The vehicle left the roadway and struck a grouping of trees. McKenna K. Johnson (age 13) of Eleva ... were driving on Walnu...

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