Go Back   DealershipForum.com > Regional Forums > Southwest Region > Automotive Discussions

Notices

Reply
 
Thread Tools Display Modes
Old 01-18-2011, 09:35 AM   #1
XDCX
Administrator
 
Join Date: Nov 2007
Posts: 14,856
Default 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.
XDCX is offline   Reply With Quote
Old 10-11-2011, 09:21 AM   #2
XDCX
Administrator
 
Join Date: Nov 2007
Posts: 14,856
Default 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?
XDCX is offline   Reply With Quote
Old 10-11-2011, 10:59 AM   #3
SHACOS
Super Moderator
 
Join Date: Jan 2008
Posts: 838
Default

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.
SHACOS is offline   Reply With Quote
Old 10-12-2011, 09:01 AM   #4
XDCX
Administrator
 
Join Date: Nov 2007
Posts: 14,856
Default

Quote:
Originally Posted by SHACOS View Post
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.
While I'll concede the Chrysler 200 isn't the most competitive vehicle in its segment I'll also argue there are a lot of Chrysler dealers who have managed to survive Marchionne's "hibernation" and some are making some pretty decent money.

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.
XDCX is offline   Reply With Quote
Old 08-08-2012, 12:30 PM   #5
XDCX
Administrator
 
Join Date: Nov 2007
Posts: 14,856
Default 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.
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
Chrysler fills OLDCO Open Point in Tacoma XDCX Automotive Discussions 17 02-16-2012 09:34 AM
GM Open Point in Hawaii - Hilo and Kona XDCX Automotive Discussions 0 05-27-2009 09:08 PM
Dealership For Sale - Free Parts and Free Assets XDCX Automotive Discussions 0 03-02-2009 09:38 PM
KIA Open Point in Ventura, CA? XDCX Automotive Discussions 2 07-28-2008 06:57 AM
Volkswagen Open Point in Maui... XDCX Sales 0 01-01-2008 11:22 PM


All times are GMT -7. The time now is 09:38 PM.


Powered by vBulletin® Version 3.8.5
Copyright ©2000 - 2018, Jelsoft Enterprises Ltd.
Copyright DealershipForum.com - 2008 - 2016