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Old 03-02-2011, 10:25 AM   #1
XDCX
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Default 51% of a Nissan Dealership for $300K?

I was looking thought the classified section of Automotive News and thought the following ad was intriguing:

Quote:
WANTED: DEALER PARTNER
RARE OWNERSHIP OPPORTUNITY GOING FAST!
Want to be a Majority Owner in a Nissan Store? $300,000 minimum investment ( 51% ownership). Available Immediately at Boyland Nissan in Macomb Township, MI. Dealership was ranked #3 in its District in New Car Sales in 2010. Candidate must be approved by Nissan as Executive Manager and Dealer Operator. Must have General Manager experience, be able to operate dealership on a day to day basis and have total knowledge of all dealership operations. References Required. Send Inquires to Joel at whatacarguy@gmail.com


Clearly an investment of $300K wouldn't buy 51% of the assets and Blue Sky but it still might be a great way for an aspiring GM to get a start in a store and structure a buy/sell.

While I'm not a great fan of Michigan's weather, I do think Nissan has a pretty decent product line. I've read some comments that Nissan's a little "heavy handed" with their dealers but that was mostly related to their facility demands.

Any thoughts about this opportunity?

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Old 03-03-2011, 12:05 PM   #2
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Default Boyland Nissan in McComb Township, MI

I guess curiosity killed the cat, but I was wondering how big the store was so I decided to check out their website. Here's the link - click here

After surfing their website I formed three quick impressions:
  1. It's a pretty big store with 150 new Nissans in inventory
  2. It seems odd there are only 28 used cars that appear on their website
  3. Their website is really slow to load. It looks like it's a factory site provided by Dealer.com and it takes about 30+ seconds before it loads on my laptop. At first I thought Google had a bad link.
On a final note, I wonder if this store is part of the Boyland Auto Group? I used to call on Dorian Boyland when he was a MID Dealer in Gresham, OR and I know he's expanded his empire and purchased a number of dealerships throughout the country.
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Old 03-03-2011, 01:44 PM   #3
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I wonder if they have floorplan. 28 used doesn't make sense with 150 new. Maybe they need 200k to back floorplan and the other 100k for operating expenses. Maybe not, but I've seen it before. Nissan's a very good opportunity if it's legit. Their model lineup offers something for everyone, they're good vehicles, and brand loyalty is good as well.
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Old 03-03-2011, 02:28 PM   #4
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Quote:
Originally Posted by birch3x View Post
I wonder if they have floorplan. 28 used doesn't make sense with 150 new. Maybe they need 200k to back floorplan and the other 100k for operating expenses. Maybe not, but I've seen it before. Nissan's a very good opportunity if it's legit. Their model lineup offers something for everyone, they're good vehicles, and brand loyalty is good as well.
I can tell you that it is part of the Boyland Group but he does not own the building. They used to be Victory Nissan, then Dorian purchased the store a few years ago."BOYLAND NISSAN, THEIR BROKER THAN YOU THINK!"

Last edited by 70rr; 03-03-2011 at 02:30 PM.
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Old 03-03-2011, 11:13 PM   #5
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Originally Posted by birch3x View Post
Their model lineup offers something for everyone, they're good vehicles, and brand loyalty is good as well.
I agree. With the possible exception of their full-size trucks I think Nissan has an attractive line-up of vehicles that are very competitive in the marketplace.

I also sense that Nissan is receptive to dealer input - it's my understanding the reason Penske's deal to take over Saturn from GM died was due to the opposition the deal received from Nissan's Dealer Council. (Penske was going to source future Saturns from a Nissan subsidiary and the Nissan dealers didn't want the competition so Nissan walked away from the deal and left Penske hanging.)

On a side note, I still think a Chrysler/Nissan deal would have made more sense than a Chrysler/Fiat deal but there's no need to rehash that debate - it's all water under the bridge.

Quote:
Originally Posted by 70rr View Post
"BOYLAND NISSAN, THEIR BROKER THAN YOU THINK!"
I'm not sure I follow your point. If Boyland Nissan is part of Dorian's Auto Group I doubt they have any financial issues. Dorian's Auto Group is still listed in the Automotive News Top 100 Dealer List.

Maybe he just wants to cut loose an under-performing store?
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Old 03-04-2011, 07:41 AM   #6
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big rent factor.

Last edited by Hope and Grace; 03-07-2011 at 08:23 AM.
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Old 03-04-2011, 11:10 AM   #7
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Default I sent an email to Joel and advised him of this thread

I sent an email to Joel at the address listed in the AN advertisement and advised him of this thread and invited him to respond.

He sent me an email back indicating he's on the road but he's reviewed the thread and wants to correct some incorrect information. Hopefully he'll create an account on the forum and respond directly or I can relay his thoughts and add them to the thread.
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Old 03-04-2011, 03:45 PM   #8
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70K rent???? Who ever sold to these guys sure put them in the trees...
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Old 03-04-2011, 03:58 PM   #9
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I used to complain about paying 15k to Chrysler Realty on my C/P store in 1988, this makes me feel better...
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Old 03-05-2011, 09:39 AM   #10
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I used to complain about paying 15k to Chrysler Realty on my C/P store in 1988, this makes me feel better...
Well, this should make you feel euphoric.....

Some poor soul has to wake up every morning and try to make this Factory Owned monstrosity work:



Motor Village of Los Angeles is housed in building that Chrysler paid over $27 Million for and the property taxes alone are almost $1,000 per day.

Between debt service, property taxes, insurance and utilities, I'm betting the monthly fixed expense for that dealership is $180,000 to $200,000.
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Old 03-06-2011, 12:45 PM   #11
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WOW, how is anyone supposed to float something like that? I know that chrysler is working at turning their product around but that's a big chunk if change to give up every month. I always forget how lucky our dealership is to own the land we're built on.
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Old 03-06-2011, 11:10 PM   #12
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WOW, how is anyone supposed to float something like that?
You simply ask the taxpayers for billions in bailout funds and then convince the White House they need to sign-off on the deal to save UAW jobs. (Sorry, I couldn't help myself... )

On a serious note, Chrysler owns the building and they'll run the dealership as a factory store. Chrysler tried to find some private capital dealers to take the deal but no one would touch it. As I've stated in another thread, I'd be amazed if that store doesn't lose at least $100K per month.
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Old 03-07-2011, 07:47 AM   #13
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Quote:
Originally Posted by XDCX View Post
I agree. With the possible exception of their full-size trucks I think Nissan has an attractive line-up of vehicles that are very competitive in the marketplace.

I also sense that Nissan is receptive to dealer input - it's my understanding the reason Penske's deal to take over Saturn from GM died was due to the opposition the deal received from Nissan's Dealer Council. (Penske was going to source future Saturns from a Nissan subsidiary and the Nissan dealers didn't want the competition so Nissan walked away from the deal and left Penske hanging.)

On a side note, I still think a Chrysler/Nissan deal would have made more sense than a Chrysler/Fiat deal but there's no need to rehash that debate - it's all water under the bridge.



I'm not sure I follow your point. If Boyland Nissan is part of Dorian's Auto Group I doubt they have any financial issues. Dorian's Auto Group is still listed in the Automotive News Top 100 Dealer List.

Maybe he just wants to cut loose an under-performing store?
Referring to my prior post. The main reason is exactly what rd3311 said. The rent is big $$$$$!! The "BOYLAND NISSAN, THEIR BROKER THAN YOU THINK" is a spinoff of their "BOYLAND NISSAN, THEIR CLOSER THAN YOU THINK".
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Old 03-07-2011, 09:03 AM   #14
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Quote:
Originally Posted by 70rr View Post
The "BOYLAND NISSAN, THEIR BROKER THAN YOU THINK" is a spinoff of their "BOYLAND NISSAN, THEIR CLOSER THAN YOU THINK".
Now I get it.... I'm too far away from Michigan to have heard their advertising tag line.
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Old 04-30-2011, 01:11 PM   #15
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Big Fixed Expense killed a dealer in this area too, google earth 11945 N. Florida Ave. Tampa, Fl. This was Bob Wilson Dodge. a family owned dealership since the 70s. Chrysler pushed him into constructing a new facility and it put him out of business. He closed a year or so before the Chrysler BK and Dealer cuts. I was told that huge parking garage was just step 1 of 3 major things he had to do. They closed about 6 months after opening that garage.
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