Go Back   DealershipForum.com > Dealer Talk > Automotive Discussions

Notices

Automotive Discussions Car People talking about the Car Business – This is the place where it happens

Reply
 
Thread Tools Display Modes
Old 04-16-2014, 11:06 AM   #1
XDCX
Administrator
 
Join Date: Nov 2007
Posts: 14,869
Default CNBC's "The Profit" takes on Athans Motors in Morton Grove, IL

Quote:
Originally Posted by mryan55 View Post
Yep... the only thing I remember about it was that it was on super late on Sunday nights... well past my bedtime, so I always had to record it.

However, it is the show that got me to start watching Spike TV... I still watch Bar Rescue every now and then, although it seems like new episodes aren't on with any regularity.
I checked the SPIKE TV website and it looks like they still have the full episodes of Car Lot Rescue available for online viewing.

On a related note, I watched an episode of The Profit on CNBC the other night where they transformed a failing dealership in the Chicago area. The episode featured a high end used car store, Athan Motors, and reported the store's been losing $100K/month for a couple of years.

The dealership owner agreed to give up 50% of his equity and 100% of his control for a $3 Million capital infusion. The store was rebranded to AutoMatch USA and features more affordable cars.

Like Car Lot Rescue, there were several scenes in The Profit that seemed fake or unbelievable but overall it was MUCH better than any episode of Car Lot Rescue I ever watched.
XDCX is offline   Reply With Quote
Old 04-16-2014, 12:20 PM   #2
mryan55
Senior Member
 
Join Date: Mar 2013
Posts: 595
Default

Darn... I'll have to hope that it re-airs overnight or something or that it becomes available to watch online.

I didn't know anything of the show called The Profit until they were the title sponsor for the NASCAR race at Phoenix this year!
mryan55 is offline   Reply With Quote
Old 04-17-2014, 12:21 PM   #3
XDCX
Administrator
 
Join Date: Nov 2007
Posts: 14,869
Default

Quote:
Originally Posted by mryan55 View Post
Darn... I'll have to hope that it re-airs overnight or something or that it becomes available to watch online.

I didn't know anything of the show called The Profit until they were the title sponsor for the NASCAR race at Phoenix this year!
If I get caught up I might create a new thread on CNBC's episode of The Profit that covered Athan Motors. I know we have some members who are familiar with the car market in Chicago and I'd be curious to hear if anyone knew of this dealership or thought it was possible the store was losing $100K/month.

Update: I added a new thread and I'll copy the posts related to CNBC's "The Profit" to the new thread.

Last edited by XDCX; 04-17-2014 at 03:21 PM. Reason: Updated thread and moved posts
XDCX is offline   Reply With Quote
Old 04-17-2014, 01:54 PM   #4
steve_biegler
Senior Member
 
Join Date: May 2010
Posts: 1,497
Default

I noticed that "The Profit" is available in the ON DEMAND section of our cable providers choices. Plan on trying to watch tonight.
steve_biegler is offline   Reply With Quote
Old 04-17-2014, 03:13 PM   #5
XDCX
Administrator
 
Join Date: Nov 2007
Posts: 14,869
Default CNBC's "The Profit" takes on Athans Motors in Morton Grove, IL

In an episode that's somewhat similar to SPIKE TV's "Car Lot Rescue," CNBC's "The Profit" takes on Athans Motors in Morton Grove, IL.




For those who are familiar with the Chicago area car market, have you ever heard of this store? Is it possible a store like this could be losing $100K to $150K per month?

For those who have watched the episode, does it appear the business had any value at all? The show's investor injects $3.5 Million for 50% of the business which sounds like a lot but then indicates his investment is secured by the used vehicle inventory which will eventually be $3.5 Million or more.

To me it appeared that the investor got 50% of the business essentially for free, but then again, the business may have had close to zero equity.

Overall the show was more enjoyable to watch than "Car Lot Rescue" and it appears the plot is less contrived although the review of how a dealership operates was mostly superficial. (The novice viewer would watch the program and believe that most dealers have the vast majority of their capital tied up in inventory - it's as though they've never heard of flooring...)
XDCX is offline   Reply With Quote
Old 04-17-2014, 04:51 PM   #6
chryslersrt8
Senior Member
 
Join Date: Sep 2009
Posts: 307
Default

Never heard of it or the show
chryslersrt8 is offline   Reply With Quote
Old 04-18-2014, 06:26 AM   #7
mryan55
Senior Member
 
Join Date: Mar 2013
Posts: 595
Default

That's a pretty snazzy facility... I'm sure someone got in over their head there. From the odd slant on the near wall in the picture it looks like a former Saab store? But the arch kind of screams Buick Pontiac GMC.

From a search on Google I can't really find what it was in its previous incarnation as a new car store.

I peruse eBayMotors listings quite a bit, and something that strikes me is just how many used car operations in the Chicagoland area focus on high end used cars... you think the bigger market would be for late model domestics and Asian cars... but maybe ego gets in the way sometimes? Or of course there's the fact that it's easier to steal a higher than average mile German car.
mryan55 is offline   Reply With Quote
Old 04-18-2014, 08:52 PM   #8
XDCX
Administrator
 
Join Date: Nov 2007
Posts: 14,869
Default

Quote:
Originally Posted by mryan55 View Post
That's a pretty snazzy facility... I'm sure someone got in over their head there. From the odd slant on the near wall in the picture it looks like a former Saab store? But the arch kind of screams Buick Pontiac GMC.
You've got a good eye....

Based on a quick Google Search using the street address and the time period of 2006-2009 the Auto Dealer Directory turned up the following:

Saab Exchange-Morton Grove The
9040 Waukegan Rd
Morton Grove, IL 60053
(847) 967-9040 ID:72455


Quote:
Originally Posted by mryan55 View Post

I peruse eBayMotors listings quite a bit, and something that strikes me is just how many used car operations in the Chicagoland area focus on high end used cars... you think the bigger market would be for late model domestics and Asian cars... but maybe ego gets in the way sometimes? Or of course there's the fact that it's easier to steal a higher than average mile German car.
You make an excellent point. I think ego has a lot to do with it as well as the desire to deal with more affluent/sophisticated customers.

That said, somewhere in the past week I read a comment that's really been sticking in the back of my mind - "Sell to the classes, live with the masses. Sell to the masses, live with the classes."

That quote fits perfectly with your commentary - it seems if you really want to make big money you have to be selling to the masses. While I'm sure there are exceptions, the concept sure worked great for car dealers like Cal Worthington who went out of their way to cater to the everyday working man.
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

Similar Threads
Thread Thread Starter Forum Replies Last Post
Does your Dealership charge an "Additional Dealer Markup" on Hot Vehicles? XDCX Automotive Discussions 12 06-13-2013 03:38 PM
Book Report - "Outraged" by Tammy Darvish and Lillie Guyer XDCX Automotive Discussions 11 06-04-2012 04:19 PM
Dealer want $2.2 Million "Blue Sky" for a Hyundai Dealership in Chicago XDCX Sales 5 10-06-2009 09:28 AM
NEWCO Dealer attacks OLDCO Dealers with "Buyers Beware" ad XDCX Sales 8 06-01-2009 03:43 PM
Chrysler/Jeep of Elk Grove completes "Project Genesis" XDCX Automotive Discussions 1 10-20-2008 06:01 PM


All times are GMT -7. The time now is 01:48 AM.


Powered by vBulletin® Version 3.8.5
Copyright ©2000 - 2024, Jelsoft Enterprises Ltd.
Copyright DealershipForum.com - 2008 - 2016