Ford Store in Kansas For Sale - $995K buys Blue Sky, Parts and FFE

[XDCX]

I was somewhat surprised when I reviewed the following email message earlier this week:

http://i59.tinypic.com/jh8xdv.jpg
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I thought $995K for a Single Point Ford Store seemed pretty cheap given that the $995K included Blue Sky, Parts and FFE - Furniture, fixtures and equipment.
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I'm guessing that even a small Ford Store would likely have at least $100K in parts and the FFE would probably cost $150K - $250K if a person had to purchase the items in the open market. (Granted, FFE often doesn't have much value if a business closes and the items are sold at auction.)

[XDCX]

When I first saw the ad I was wondering whether the relatively low price signaled that the market is softening for Car Dealerships.

Upon further reflection I'm guessing that the pricing likely represents a growing dichotomy between larger/metro stores and smaller/rural stores.

While I don't necessarily like the trend I think it's clear that smaller/rural stores have not seen the spike in Blue Sky values that their larger store brethren have enjoyed.

[XDCX]

Well, a month and a half later and the store's still for sale. (I received another email this morning - that's what made me think of this thread.)

To me the store seems like it would be ideal for a person who wants to be a first-generation car dealer but then again there's only so much you can garner from a simple business listing.

On a somewhat related note, I saw a headline that Automotive News did a story about the future of small/rural dealerships in the U.S. When I get a chance I'll read that story and maybe start a new thread on the topic.

[XDCX]

Well, if you thought the price for a Ford store in Kansas was cheap before, it's even cheaper now....

I received an email this morning and the new price is $975,000 and that includes the real estate.

That's right, for $975,000 you get the parts, FFE, goodwill and real estate. All you need is some capital for used cars and secure a floorplan for your new cars and you're in business.

[XDCX]

Here's an excerpt from the most recent email:


http://i65.tinypic.com/2me3ldt.jpg

[XDCX]

Wow, over a year later and the Ford Dealership in Kansas is still on the market... :confused:

http://i66.tinypic.com/2rc63vb.jpg


Maybe it's just me but I still think $975K is cheap to acquire a dealership with a great franchise that could potentially be turned into a real money maker.

Is there some downside (perhaps Ford facility demands or some other factory requirements?) that I'm not seeing?

Maybe the market for rural dealerships is dead...?