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Used Car Dealership

An independent used car dealership on a four-lane highway near Albany, sold with the real estate and auto-zoning that is close to unobtainable in the area.

Business Highlights

  • Auto-zoned lot with 180 feet of frontage on a four-lane highway, zoning that is nearly impossible to replicate locally
  • Real estate is included in the sale, which removes lease risk entirely
  • Lot capacity is over 200 vehicles against current inventory of around 40
  • The business is running at under a quarter of its lot capacity

Considerations / Questions to Ask

  • What is the average days-to-sale on current inventory, and how does that compare with the lot at full volume?
  • The lot is running at under 25% capacity. Is that a working capital constraint, a sourcing constraint, or a deliberate wind-down?
  • Current management does all vehicle buying. Who is that, and are they staying?
  • How is inventory financed, and does the floor plan facility transfer?
  • How is the real estate valued within the asking price, and does the business service that on current volume?

Opportunities

  • Capacity for over 200 vehicles already exists and is already zoned, so volume can be rebuilt without any planning risk
  • The zoning and frontage are a genuine barrier to entry rather than a marketing claim
  • Owning the real estate gives a buyer options including sale-leaseback
  • Reconditioning, financing and service are attachments a used car lot can add to existing volume