Classification of Honda cars
During 2009 there were dealerships (both domestic and import) that made more than half a million dollars in a month, but most analysts said 2009 wasn’t the time to buy a dealer.You may want to check out Reasons Why You Should Buy a Honda – Reality Paper for more.
Note, “Waiting for ideal circumstances will never make anything happen.” Ecclesiastes 11:4. It’s not the “conditions” that count; it’s the “study.” The truth is that during what the pundits now characterize as “the good times” most car dealerships that closed in 2009 were purchased or built. The periods that owners and analysts lamented were “the right periods” to purchase and build.
Case in point: Automotive News ran a front-page article in 2008 on a fellow building a Toyota dealer on the freeway across from the Oakland Coliseum – a $35 million store with five floors and a four-story glass showroom. The experts proclaimed “… has a wider view of the relationship between real estate and car dealers than you usually would consider.”
The Oakland Tribune reported on 24 February 2009: “New Toyota dealership closes in Oakland.” The customer relations manager of the dealership lamented in that article: “I’m sort of in a shock state because we thought we had such a bright and opportunistic future here, and with that, it leaves an unpleasant taste …”
Unless one analyses the scenario, the dealership would have failed.
The success of the dealership would have been counter to the laws of nature for a multitude of reasons, not the least of which was the rent factor for the shop. Nonetheless, an overview of the circumstance is left for another post. The object lesson learned for this article is: when a transaction is accepted by the manufacturer, it is funded by the lenders and endorsed by the trade publications, such endorsements do not offer any assurance that a dealer will succeed. That said, there are a lot of buyers who will still believe that those endorsements mean success. In today’s flood of litigation, factories and lenders are unable to offer business advice, and if the factory failed, it is the factories and lenders who will be sued. Therefore, one has to rely on oneself and advisors who are not afraid to contradict the boss.
Apart from this, be careful not to associate with the typical “deal-breakers.” Many counsellors are persistent naysayers and counsellors are not punished for asking a client not to make a contract.