How much...
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09-14-2005, 10:52 PM
#8
Drifting
well openning any kind of a food/retail franchise such as Burger King or Haagen Daz it'll cost you anywhere from 250-400 thousand dollars..
so think about how much it'll be for a car dealer...
so think about how much it'll be for a car dealer...
09-14-2005, 11:01 PM
#9
Not $250,000. Not $500,00. It would cost millions and millions. Hell, to open a Taco Bell the franchise requires an investor to have over a $1M liquid! Then they pay for the land and construction and inventory.
09-14-2005, 11:32 PM
#10
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Several million. Buying an existing facility with a shop already in place would probably be the cheapest way to go, otherwise you'd drop over a mil just buying the land and building the place. Then you have staff overhead, equipment, parts and new car inventory, sales staff overhead, insurance, the fee to pay Acura for the franchise, and enough operating cash to start with to carry you through the lean first years.
Big, big, big ass bucks, any way you slice it.
Big, big, big ass bucks, any way you slice it.
Last edited by TheMirror; 09-14-2005 at 11:35 PM.
09-15-2005, 12:17 AM
#13
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Originally Posted by Crazy88
Millions..as already stated. It also helps to have family that own car dealerships, in the Chicago area there are many family-connected dealers.
http://www.steadauto.com/
http://www.niello.com/
09-15-2005, 06:35 AM
#16
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To buy an existing one and renovate with acura image package will cost you over a million dollars. To buy into Acura with a new store, im not sure.
09-15-2005, 06:36 AM
#17
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Originally Posted by 41510TL
open a used car dealership instead buddy....you dont gotta pay any franchise fees....all you really need is a parking lot and a habit for finding cheap used car deals
09-15-2005, 09:12 AM
#19
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I used to work for a company that provided computers and software specifically for car dealerships. The cost is incredible. That particular computer system alone cost millions just to set up, then it cost the average dealership about $18,000 a month in support fees.
And that's just the computers. A lot of dealerships, even ones with family names, are owned by conglomerates.
If you're serious about finding more information, search the internet for Group 1 and Sonic. I think those are the two big ones. For more information about the computer side, go to www.adp.com, www.universalcomputersys.com, and www.reyrey.com.
And that's just the computers. A lot of dealerships, even ones with family names, are owned by conglomerates.
If you're serious about finding more information, search the internet for Group 1 and Sonic. I think those are the two big ones. For more information about the computer side, go to www.adp.com, www.universalcomputersys.com, and www.reyrey.com.
09-15-2005, 09:08 PM
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Originally Posted by NJtsx
i totally agree. And hopefully i will get into owning a few wholesale yards as a side job
ahha good thing your on the jersey coast instead of cali.....i want to get into the car business too
i got some crazy good ideas from multimillionaire car businesses in japan...but sadly i will not share any of them with you guys
09-16-2005, 01:54 PM
#24
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Originally Posted by Shiffy
gonna beat mommy and daddy up until they buy you 1?
09-16-2005, 02:55 PM
#25
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Originally Posted by sipark
The facility alone would cost millions...
09-17-2005, 01:14 PM
#26
I Am Lookin For A Used TL
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ok, so would acura/ honda NA have to approve of me builing a dealer and using their logos and etc?? or is there a process??
09-17-2005, 01:35 PM
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You could always find a dealership that closed and use that, that would save a ton of $. we used to have the smallest audi/porsche dealership EVER, you could fit like 3 cars in the showroom and a few years ago they built a huge ass audi dealership and a porsche dealer next to it and the old buildings now a scion dealer..
09-17-2005, 01:36 PM
#28
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Originally Posted by ianbiz
ok, so would acura/ honda NA have to approve of me builing a dealer and using their logos and etc?? or is there a process??
Yes, if you want to be a certified dealer, you need to go through Honda to get approved/certified
09-17-2005, 01:37 PM
#29
dɐɹɔ ǝɥʇ ʇɐɥʍ
I've looked into this type of venture in the past and don't think its worth the trouble.
These large companies are VERY picky about EVERYTHING, you need your parking lot to meet there criteria, your building has to be set-up a certain way. Have you ever done any property development before? I do it for a living and its not something for a novice, you'll lose a fortune on mistakes dealing with your local planning board, let alone the problems you'll have dealing with contractors, finding employees, meeting deadlines, staying with in budget(which never happens don't tell me that for some reason your project would stay in budget, because it just never happens), securing a loan, legal fees, have you ever priced a sign before?? your going to be in shock.... I could go on and on. Development on this type of project would cost roughly 25% of the total cost of the finished product, if not more.
If I had to guess, minimum to get set-up in my area(which is MUCH cheaper then most areas) as a small dealership would be $5 million+ for an Acura dealership, then plan on operating at a loss for a minimum of 6 months and you just might make it.
I am working on development of the Peekskill landfill(with a very experienced partner) and as boring as that project sounds, its going to cost roughly $100million dollars to construct on a 12 acre site, its taken 11 months of struggles and meeting deadlines and hundreds of thousands of dollars out of our pockets getting it this far. When the paper work is signed(should be in a week) we will be collecting our first of 3 payments in the amount of $12 million. Before you guys get carried away this was a learning experience for me and I am making VERY VERY little off it, the main two partners are the ones who are making CRAZY money on it. The point of this is that development on a complex project is expensive, and not something the average car guy who wants to open a dealership should think of taking on.
No bank is going to finance a 17 year old on a business loan of that amount with out a strong history in business, partners who are experienced in the business world or a very large trust your willing to sign over to them. If you played your cards right and had proper planning from this day forward you might be prepared to negotiate this kind of deal by the time your in your mid-20's(assuming you make not a single mistake between now and then). There's nothing wrong with dreaming, but don't turn your dreams into nightmares.
These large companies are VERY picky about EVERYTHING, you need your parking lot to meet there criteria, your building has to be set-up a certain way. Have you ever done any property development before? I do it for a living and its not something for a novice, you'll lose a fortune on mistakes dealing with your local planning board, let alone the problems you'll have dealing with contractors, finding employees, meeting deadlines, staying with in budget(which never happens don't tell me that for some reason your project would stay in budget, because it just never happens), securing a loan, legal fees, have you ever priced a sign before?? your going to be in shock.... I could go on and on. Development on this type of project would cost roughly 25% of the total cost of the finished product, if not more.
If I had to guess, minimum to get set-up in my area(which is MUCH cheaper then most areas) as a small dealership would be $5 million+ for an Acura dealership, then plan on operating at a loss for a minimum of 6 months and you just might make it.
I am working on development of the Peekskill landfill(with a very experienced partner) and as boring as that project sounds, its going to cost roughly $100million dollars to construct on a 12 acre site, its taken 11 months of struggles and meeting deadlines and hundreds of thousands of dollars out of our pockets getting it this far. When the paper work is signed(should be in a week) we will be collecting our first of 3 payments in the amount of $12 million. Before you guys get carried away this was a learning experience for me and I am making VERY VERY little off it, the main two partners are the ones who are making CRAZY money on it. The point of this is that development on a complex project is expensive, and not something the average car guy who wants to open a dealership should think of taking on.
No bank is going to finance a 17 year old on a business loan of that amount with out a strong history in business, partners who are experienced in the business world or a very large trust your willing to sign over to them. If you played your cards right and had proper planning from this day forward you might be prepared to negotiate this kind of deal by the time your in your mid-20's(assuming you make not a single mistake between now and then). There's nothing wrong with dreaming, but don't turn your dreams into nightmares.
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