Large, Very Profitable, High End Used Car Sales Dealership
Great Location, Great Website, High End, High Volume, and Great Employees
The 2022 gross revenues were 17,586,123 and the earnings were 1,000,598. The 2021 full-year revenues were 22.7M dollars with 1.14M in earnings but new cars were hard to find from late 2020 to late 2021 which created a short-term boom in used car dealers. 2022 returned to normal because used car prices returning to normal.
The sales price of 2.7M sales price is only 2.7 times the earnings which is the lowest I have seen for a car dealer. The inventory is extra and is currently estimated to be 2.9M. The actual amount of inventory will fluctuate daily as inventory is sold and new inventory arrives and will be adjusted at the closing properly. Auto dealers usually sell for 3 ½ to 4 times the earnings plus inventory but we have priced this at only 2.9 times the earnings for a reason explained in the detailed package you will receive after fully filling out and submitting the non-disclosure agreement in the blue link above in the first paragraph. They sell a wide range of high end used cars.
The owner is selling because investing in his kids time and future and will help the new owner in transition.
The business continues to grow based on their very high traffic location, quality inventory, experienced salespeople, repeat customers, referrals, and services they provide including accepting trade ins and offering financing choices. Although the owner has been involved in the business since its inception, he is not “the face of the business”.
The buyer will also get 100K dollars in current value of equipment, tools, furniture, computers, surveillance system, phone system, etc.
This company has a very high Google Star Rating. They are also a member of the “Colorado Automotive Dealers Association”. They have a great interactive website with all of their inventory posted on the website. This company has an excellent reputation in the industry. The buyer will be required to obtain a Colorado “Franchised New Car Dealer” license to operate the business. This is obtained through the Colorado Motor Vehicle Dealer board.
A bank will only require 10% to 15% down payment from a qualified buyer, depending on the buyers’ experience. This business will probably qualify for the SBA’s “standard” loan program and not the “preferred” SBA program because he will not indemnify the 2021 financials.
Details:
There is the proper number of employees plus the owner. The current employees have all proven their loyalty to the company and they work well together as a team. The Seller is willing to train a new buyer with little or no experience as needed. But the buyer must have the drive and aptitude or experience to run a busy retail business. He/she should have a strong sales mindset.
The business has a solid name and a highly respected reputation for fair dealings. The seller will agree to full Reps and Warranties to a solid legal and business standing. There are no “ghosts in the closet”. They have a great record for safety and no legal issues of any kind.
Awesome location: The property is in a great location with a very high traffic count location which all day and all weekend, not just commuter traffic. The building has been leased for 18 years and has a main building that is very functional for the business operations, a maintenance building with many bays, and a showroom. There are plenty of offices for growth. The property has fencing and Security cameras and there is plenty of parking. There is 5 years left on the lease and the landlord has expressed a desire for the business to continue as a long-term tenant.
Growth and Expansion: A new owner, with the energy and experience to promote the business, will have many opportunities to grow this already solidly established business.
Thank you for your consideration,
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