Go Back   DealershipForum.com > Domestic Franchises and Independent Dealers > Independent Dealers > Sales

Notices

Reply
 
Thread Tools Display Modes
Old 01-27-2011, 11:43 AM   #16
Needhelp
Senior Member
 
Join Date: Aug 2009
Posts: 105
Default

It was more of a bulk-mail solicitation, but it didn't go to my junk mail.

I did look into the Macco program last year. They said they had a nice deal for terminated dealers, much less costly than their normal fees. However, I thought it was too costly to signup. If anyone else has a relationship for their body shop that has increased profits I sure would like to hear.

On another note I signed an agreement with Carquest over a year ago and it has been very beneficial as well as inexpensive to become a dealer.
Needhelp is offline   Reply With Quote
Old 01-28-2011, 10:50 AM   #17
XDCX
Administrator
 
Join Date: Nov 2007
Posts: 14,869
Default

Quote:
Originally Posted by Needhelp View Post
It was more of a bulk-mail solicitation, but it didn't go to my junk mail.
Thanks for the update - that's interesting.

I checked out AutoStar Superstore's site last night and they only showed about 80 vehicles in inventory for all six stores - seems odd. I wonder if they'll have a presence at NADA this year?

Quote:
Originally Posted by Needhelp View Post
I did look into the Macco program last year. They said they had a nice deal for terminated dealers, much less costly than their normal fees. However, I thought it was too costly to signup. If anyone else has a relationship for their body shop that has increased profits I sure would like to hear.

On another note I signed an agreement with Carquest over a year ago and it has been very beneficial as well as inexpensive to become a dealer.
Thanks for the information about Macco and Carquest. I know an OLDCO dealership I was fond of in the Pacific Northwest decided to enter an agreement with Carquest and it appeared to be a perfect solution to keep their service and parts operations viable.
XDCX is offline   Reply With Quote
Old 12-03-2012, 02:09 PM   #18
XDCX
Administrator
 
Join Date: Nov 2007
Posts: 14,869
Default AutoStarSuperstores.com domain is available for purchase - $1,795

I was surfing the Internet this weekend and something prompted me to check-out the latest status of Ken Zangara's AutoStar Superstore operation.

I was somewhat surprised to see the webpage has disappeared and the domain is available for purchase for $1,795. It appears that the AutoStar Superstore concept has failed. Here's a link to the site selling the AutoStarSuperstores.com domain - click here

While I've never been a huge fan of Ken Zangara I do wonder if one day we'll look back and think his AutoStar concept was an idea that was ahead of its time. CARMAX has definitely proven that a dedicated used car operation without a new car franchise can be viable and AutoStar wanted to expand that idea by issuing franchises with an emphasis on Service and Parts.

While Thrifty Rent-a-Car and some other companies have attempted to franchise the used car market it still remains almost 100% independent.

Was Zangara's idea ahead of its time or will the used car business always be a collection of independent operators?
XDCX is offline   Reply With Quote
Old 12-04-2012, 06:22 AM   #19
The StraightShooter
Senior Member
 
Join Date: Aug 2009
Posts: 516
Default

There was an AutoStar not far from me. He was a Chevy dealer who had his store cut after only owning it for 2 years. He closed this past summer. I'm not privy to all the difficulties he must have faced being a wind down dealer but obviously it did not save him.
The StraightShooter is offline   Reply With Quote
Old 12-04-2012, 09:51 AM   #20
XDCX
Administrator
 
Join Date: Nov 2007
Posts: 14,869
Default

Quote:
Originally Posted by The StraightShooter View Post
There was an AutoStar not far from me. He was a Chevy dealer who had his store cut after only owning it for 2 years. He closed this past summer. I'm not privy to all the difficulties he must have faced being a wind down dealer but obviously it did not save him.
The only AutoStar store that I'm aware of on the West Coast was operated by Art Laws - owner of Timberline Dodge in Portland, an OLDCO dealer who lost his store due to Chrysler's bankruptcy.

I have a tremendous amount of respect for Art and his son, Alex, and I remember they dropped AutoStar after just a short period of time. I'm guessing Art and Alex saw something they didn't like and decided they'd be better off running their operation as an independent dealer.

I still like the idea of a Franchised Used Car solution that includes an emphasis on Service and Parts and targets dealers who don't want to be tied to an OEM.
XDCX is offline   Reply With Quote
Old 12-04-2012, 10:13 AM   #21
steve_biegler
Senior Member
 
Join Date: May 2010
Posts: 1,452
Default

Wes Rydell tried a used car franchise type operation called "Cartiva" back about 1990 or so. Here is a article on it.
http://www.pinnacle-strategies.com/a...%20Success.pdf

As far as I can tell there are still 2 operating out of Stillwater Minnesota and Minot North Dakota. At its peak I think they had approximately two dozen stores. I think they found that it was to hard to keep the correct inventory let alone buy it successfully. I see a used franchise as hard to do because the "franchise" does not produce anything. It does not manufacture used cars, it buys them at the same auctions that new dealers attend, assuming they want better quality cars. A new car franchise gives you something that a used operation cannot get (new cars and nice trades from the new line) even though the new franchise has the opportunity for the same nice cars at auction.
steve_biegler is offline   Reply With Quote
Old 12-10-2012, 08:55 AM   #22
XDCX
Administrator
 
Join Date: Nov 2007
Posts: 14,869
Default

Quote:
Originally Posted by steve_biegler View Post
Wes Rydell tried a used car franchise type operation called "Cartiva" back about 1990 or so. Here is a article on it.
http://www.pinnacle-strategies.com/a...%20Success.pdf

As far as I can tell there are still 2 operating out of Stillwater Minnesota and Minot North Dakota. At its peak I think they had approximately two dozen stores. I think they found that it was to hard to keep the correct inventory let alone buy it successfully.
Thanks for the link - that was interesting. Clearly the idea of franchising a used car operation isn't new and there aren't too many examples that have proven successful

Quote:
Originally Posted by steve_biegler View Post
I see a used franchise as hard to do because the "franchise" does not produce anything. It does not manufacture used cars, it buys them at the same auctions that new dealers attend, assuming they want better quality cars.
I follow your point and maybe I'm biased because I tend to favor a franchised business over an independent business when making many of my purchases.

While I agree that the access to inventory would remain the same for an independent vs franchise used car dealer, I do think a franchisor could offer value to a franchisee in the form of advertising, floorplanning, DMS system, facility design, insurance coverage, governmental compliance, etc.

From a customer's standpoint, I think many customers are more willing to purchase a used car from CARMAX because CARMAX is a company with a nation wide footprint that promotes their customer-friendly procedures. I think many customers are even willing to pay more money for the same car just because it comes from a "big-box" operation.

Quote:
Originally Posted by steve_biegler View Post
A new car franchise gives you something that a used operation cannot get (new cars and nice trades from the new line) even though the new franchise has the opportunity for the same nice cars at auction.
On this point we're in total agreement.

As new car margins continue their race to zero, I think one of the most valuable aspects to having a new car franchise is the ability to get great used car inventory from new-car trades. The downside is this benefit could be diminished if new car leasing ever spikes up again.
XDCX is offline   Reply With Quote
Reply

Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off

Forum Jump


All times are GMT -7. The time now is 07:00 AM.


Powered by vBulletin® Version 3.8.5
Copyright ©2000 - 2019, Jelsoft Enterprises Ltd.
Copyright DealershipForum.com - 2008 - 2016