01-18-2011, 09:35 AM | #1 |
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Free Chrysler Open Point in Phoenix - Just buy the land....
I noticed an interesting ad in the Classified section of Automotive News offering a Chrysler/Jeep/Dodge/Ram Open Point in Phoenix for no Blue Sky - all you have to do is buy the land.
Here's the verbiage from the ad: Arizona - Phoenix MSA - Approved Chry/Jeep/Dodge new point pkg - NO BLUE SKY for LOI - Purchase land site at current appraised value - Includes valuable Econ Dev Agreement - call for details - Presidio Real Estate Advisors - 480-621-7000 A few things about the offer caused me to ponder: First, I wonder who was initially approved for a CJDR point and now wants to walk away? Second, I wonder why Auburn Hills isn't snapping up this deal? Based on Chrysler's new store in Los Angeles I thought they wanted to "experiment" in the retail arena. Third, after killing off 789 dealers why does Auburn Hills see the need to add a new point in Phoenix? I'm pretty familiar with this market and adding a new point would seem to be taking "Project Alpha" a step backwards.
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10-11-2011, 09:21 AM | #2 |
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Found it.....
I thought of this thread when I was making my Road Trip to Lake Havasu.
I was driving on Highway 303 and saw a sign for an Auto Mall that was still under development. The only franchises that were currently open were a Chevrolet store and a KIA store. When I saw the sign indicating the Auto Mall was going to include a full-line Chrysler, Jeep, Dodge store I knew this had to be the open point/LOI that was listed for sale in Automotive News. Here's a photo of the sign along Highway 303: It will be interesting to see how long it takes for the developer to find a buyer. In my opinion it's hard to start a new dealership in a new Auto Mall when you don't have an existing customer base or any natural traffic. I wonder if the person/firm who owns the rights to the Toyota, Ford, Buick/GMC and Nissan stores has any intention of starting construction soon?
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10-11-2011, 10:59 AM | #3 |
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I'm not sure I'd want to be in an auto mall with my CJDR dealership next to all my competition either. A Kia Optima next to a Chrysler 200 just puts the 200 to shame.
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10-12-2011, 09:01 AM | #4 | |
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Quote:
To me, the deal breaker with this location is the risk a dealer would have to take hoping that the other franchises will open their stores and create traffic for the Auto Mall. The location could be a gold mine in five years if the housing market has recovered and the area experiences a new wave of growth. That said, I bet the dealer who invests at that location will have to carry the store for a period of time when it's running in the red and spending money to lose money is not an attractive proposition. |
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08-08-2012, 12:30 PM | #5 |
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Larry H. Miller's opening a new CJDR Dealership in Surprise, AZ
I made a quick trip to Havasu and noticed there was a new dealership under construction and it appears that Larry H. Miller has taken advantage of this deal.
Starting a new dealership in a relatively new Auto Mall which has minimal natural traffic certainly has its risks. Larry H. Miller is a mega-dealer in the Southwest and I'm sure the dealer group has the capital to fund the dealership until it becomes profitable. |
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