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03-02-2011, 09:25 AM | #1 | |
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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:
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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03-03-2011, 11:05 AM | #2 |
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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:
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03-03-2011, 12:44 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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03-03-2011, 01:28 PM | #4 | |
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Quote:
Last edited by 70rr; 03-03-2011 at 01:30 PM. |
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03-03-2011, 10:13 PM | #5 | |
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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? |
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03-04-2011, 06:41 AM | #6 |
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big rent factor.
Last edited by Hope and Grace; 03-07-2011 at 07:23 AM. |
03-04-2011, 10:10 AM | #7 |
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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. |
03-07-2011, 06:47 AM | #8 | |
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Quote:
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03-07-2011, 08:03 AM | #9 |
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03-04-2011, 02:45 PM | #10 |
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70K rent???? Who ever sold to these guys sure put them in the trees...
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03-04-2011, 02:58 PM | #11 |
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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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03-05-2011, 08:39 AM | #12 | |
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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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03-06-2011, 11:45 AM | #13 |
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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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03-06-2011, 10:10 PM | #14 |
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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. |
04-30-2011, 12:11 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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