Car Dealerships Nissan Altima 2.5S in Eau Claire WI

Car Dealerships Nissan Altima 2.5S in Eau Claire WI

February 15, 2018
Posted by: solfa_admin

Blue Sky is the intrinsic value of an automobile dealership, over and above the value of its tangible assets. It is sometimes equated to the goodwill of a car dealership.

Most articles regarding the blue sky value of new car dealerships cite a multiple of earnings formula, such as three times earnings, four times earnings, and so forth. The idea that “blue-sky” can be determined by anything times anything is just plain wrong.

Even NADA the Car Dealerships: The Difference Between Pre-Owned and a Clunker Nissan Altima 2.5S Eau Claire WI 54701 National Automobile Dealers Association in its publication entitled “A Dealer Guide to Valuing an Automobile Dealership, NADA June 1995, Revised July 2000 bemuses, in part, with respect to valuing a dealership by using a multiple of earnings: A Rule of Thumb valuation is more properly referred to as a “greater fool theory.” “It is not valuation theory, however.”

In its Update 2004, NADA omitted its reference to “fool”, but referred to the multiple formula as Nissan Altima 2.5S Eau Claire WI 54701 rarely based upon sound economic or valuation theory, and went on to state: “If you are a seller and the rule of thumb produces a high value, then this is not a matter of great concern. Go for it, and maybe someone will be stupid enough to pay you a very high value.”

A dealership’s blue sky is based upon what a buyer thinks it can produce in net profit. If potential buyers think it Pros and Cons of Buy Here Pay Here Car Dealerships Nissan Altima 2.5S Eau Claire WI 54701 cannot produce a profit, the store will not sell. If it can produce a profit, then variables such as desirability of location, the balance the brand will bring to other existing franchises owned, whether or not the factory will require facility upgrades, and so on and so forth, determine whether or not a buyer will buy that particular brand, in that particular location, at that particular time.

I have been consulting with dealers for nearly Nissan Altima 2.5S Eau Claire WI 54701 four decades and have participated in over 1,000 automotive transactions ranging from $100,000 to over $100,000,000 and have never seen the price of a dealership sale determined by any multiple of earnings unless and until all of the above factors have been considered and the buyer then decided he, she or it was willing to spend “x” times what the buyer thought the dealership would earn, in order to purchase the business opportunity.

To think Nissan Altima 2.5S Eau Claire WI 54701 otherwise would be to subscribe to the theories that (1) even though you think a dealership could make a million dollars, the store is worth zero blue sky because it made no money last year; and (2) if a store has been making $5 million per year you should pay say 3 times $5 million as blue sky even though you think you will not produce that kind of profit. Both propositions are absurd. Nissan Altima 2.5S Eau Claire WI 54701 If a buyer does not think a dealership is worth blue sky, then what he is really saying is that he sees no business opportunity in the purchase and therefore, in my opinion, he should not buy the store.

Each dealership is unique with respect to its potential, location, balance that its brand brings a dealer group, and condition of facility. The sale is also unique with respect to whether it is a forced liquidation, Nissan Altima 2.5S Eau Claire WI 54701 orderly liquidation, arms length, insider, or a case where an anxious buyer is trying to induce an unwilling seller. There are management factors to consider, length and term of leases, possibilities or non-possibilities of purchasing the facilities and whether or not the factory wants to relocate the store or to open a new store up the street.

In the car business it is impossible to pick a dealership or a franchise out of a hat, Nissan Altima 2.5S Eau Claire WI 54701 multiply its earnings by some mystical number and predict either what the dealership is worth, or what price it would sell for – and it doesn’t matter if you are talking about a Toyota, Honda, Ford, Chevrolet, Chrysler, Dodge, or any other dealership. At any given time one franchise might be considered more or less desirable than another, but they are all valued in the same manner.

Business Results 1 - 10 of 20

Ken Vance Honda



Prestige Kia



Chilson Subaru



Ken Vance Motors



Eau Claire Automotive Group



Eau Claire Chrysler Dodge Jeep Ram



Markquart Toyota



Chilson Chrysler Dodge, LLC



Crossroads Auto Sales of Eau Claire, LLC



Eau Claire Nissan



  • Car Dealerships Chevrolet Silverado K1500 LT in Chippewa Falls WI
  • Car Dealerships Nissan Maxima 3.5 SV in Sand Creek WI
  • Car Dealerships Ford Fusion SE in Downsville WI
  • Car Dealerships Ford Fusion SE in Sand Creek WI
  • Car Dealerships Chevrolet Silverado K1500 LT in Gilmanton WI
  • Car Dealerships Nissan Altima 2.5 S in Wheeler WI
  • Car Dealerships Nissan Sentra SR in Strum WI
  • Car Dealerships Nissan Maxima SV Sport in Boyd WI
  • Car Dealerships Chevrolet Silverado K1500 LT in Bloomer WI
  • Car Dealerships Chevrolet Silverado LTZ in Mondovi WI
  • 23 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 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 Nissan Sentra
    Mileage
    13077 mi
    Fuel type
    Gasoline
    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 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 Altima
    Mileage
    34028 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
    Show all
    Category:

    Car Dealerships Nissan Altima 2.5S in Eau Claire 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” How to Find Unadvertised Discounts on New Cars Nissan Altima 2.5S Eau Claire WI 54701 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 Nissan Altima 2.5S Eau Claire WI 54701 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 Benefits of Buying From Used Car Dealerships Nissan Altima 2.5S Eau Claire WI 54701 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 Nissan Altima 2.5S Eau Claire WI 54701 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 Nissan Altima 2.5S Eau Claire WI 54701 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 Nissan Altima 2.5S Eau Claire WI 54701 (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 Nissan Altima 2.5S Eau Claire WI 54701 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 Nissan Altima 2.5S Eau Claire WI 54701 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, Nissan Altima 2.5S Eau Claire WI 54701 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 Nissan Altima 2.5S Eau Claire WI 54701 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: Nissan Altima 2.5S Eau Claire WI 54701 “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 Nissan Altima 2.5S Eau Claire WI 54701 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 Nissan Altima 2.5S Eau Claire WI 54701 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 Nissan Altima 2.5S Eau Claire WI 54701 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 Nissan Altima 2.5S Eau Claire WI 54701 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 Nissan Altima 2.5S Eau Claire WI 54701 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, Nissan Altima 2.5S Eau Claire WI 54701 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 Nissan Altima 2.5S Eau Claire WI 54701 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 Nissan Altima 2.5S Eau Claire WI 54701 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 Nissan Altima 2.5S Eau Claire WI 54701 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 Nissan Altima 2.5S Eau Claire WI 54701 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 Nissan Altima 2.5S Eau Claire WI 54701 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 Nissan Altima 2.5S Eau Claire WI 54701 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 20

    Ken Vance Honda



    Prestige Kia



    Chilson Subaru



    Ken Vance Motors



    Eau Claire Automotive Group



    Eau Claire Chrysler Dodge Jeep Ram



    Markquart Toyota



    Chilson Chrysler Dodge, LLC



    Crossroads Auto Sales of Eau Claire, LLC



    Eau Claire Nissan



  • Car Dealerships Lexus IS 250 in Mondovi WI
  • Car Dealerships Nissan Altima 2.5S in Augusta WI
  • Car Dealerships Chevrolet Silverado LTZ in Cornell WI
  • Car Dealerships Toyota Corolla S Plus in Downsville WI
  • Car Dealerships Nissan Altima 2.5 SV in Cadott WI
  • Car Dealerships Acura TL AWD in Elk Mound WI
  • Car Dealerships Chevrolet Traverse LS in Durand WI
  • Car Dealerships Ford Escape SE in Eleva WI
  • Car Dealerships Ford Fusion SE in Jim Falls WI
  • Car Dealerships Nissan Altima 2.5S in Ridgeland WI
  • 23 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 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 Nissan Sentra
    Mileage
    13077 mi
    Fuel type
    Gasoline
    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 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 Altima
    Mileage
    34028 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
    Show all
    Category: