XDCX
01-01-2008, 11:13 PM
I know that Toyota is a hot franchise but I was surprised when I read that a Toyota Dealer in San Diego just spent $20 Million to upgrade his facility. That's not $20 Million for the land and building, that's $20 Million just to expand his existing operation.
The article in Automotive News indicated that the Dealer Principal bought the neighboring Sav-on Pharmacy and tore the building down. The Sav-on building was only 4 1/2 years old!
The finance side of me just can't get past servicing $20 Million of debt - even at 6% that's $100K/month in interest. I guess when you're selling a ton of cars $100K doesn't look like that much money.
Toyota has done a great job - they deserve their success. It will be interesting to see what the future holds, but it sure looks bright at this point.
The article in Automotive News indicated that the Dealer Principal bought the neighboring Sav-on Pharmacy and tore the building down. The Sav-on building was only 4 1/2 years old!
The finance side of me just can't get past servicing $20 Million of debt - even at 6% that's $100K/month in interest. I guess when you're selling a ton of cars $100K doesn't look like that much money.
Toyota has done a great job - they deserve their success. It will be interesting to see what the future holds, but it sure looks bright at this point.