Help, how to buy a Chrysler Dealership

[Tim]

What’s required from Chrysler to buy one of their dealerships. I’m hearing that one of the dealers down the road is for sale due to business losses and domestic problems. I’m also hearing that a few of the local players (The large Local Chrysler Dealers) have also been sniffing around this dealer in question here in Northern Alberta Canada.

I have tried to make an appointment with the owner and of course, this didn’t work. Understandably, he wanted me to be very specific on why I wanted to meet with him. Unfortunately he became very defensive and stated that his place is not for sale and refused a meeting. I did sense and it was clear in his voice that there is more to this and his reaction was clearly a defense mode and not a business reaction.

I’m looking for suggestions on the protocol in contacting Chrysler to pursue this a little further. If not with this dealership, than possibly with another.

Would anyone be able to point me in the right direction, what is it Chrysler is looking for, and any idea on capital requirements etc?

Thanks

Tim

 

[ChrisXoxide]

Re: Help, how to buy a Chrysler Dealer Ship

I never knew Chrysler was manufacturing ships now too.

 

[Craig 201 MPH]

Re: Help, how to buy a Chrysler Dealer Ship

How big of a community is this in? I'm guessing that because of the location your business is most likely going to be farm trucks and few passenger cars etc...

If they don't sell a lot of trucks I'd run away, chrysler's sales are horrible recently and probably aren't going to rebound until they get their act together.

Also consider this: Chrysler is trying to move the brand upscale. What does that mean? Higher customer expectations. This will cost you big in terms of training and remodelling the whole dealership. If chrysler is going to do it right they are going to have to do away with a greasy old chair in the parts department that serves as their "waiting room" and move into something a tad more welcoming. Have you visited a "luxury brand" showroom lately? Go into a honda/acura or toyota/lexus showroom and just consider what it's going to take to make the current dealership looking something similar. Big $$$

Of course Chrysler may not choose to go that way at all in their refocusing of the brand, but then whose gonna buy a luxury car and sit on greasy chairs by the parts counter? They've gotta do it or it will fail.

I'd really look into how much business the dealership does on trucks, if they don't sell many look somewhere else.

To buy and run a dealership you're looking about 5-7mil. Now if you have to bring it up to luxury brand standards and have to remodel you're looking at huuuuge $$.

How old is the building?

 

[Tim]

Re: Help, how to buy a Chrysler Dealer Ship

Hello Craig,

This is in a town of 10,000 people and probably draws from with in the farming area of over 15 to 20,000 people. Dodge trucks and more so with the Diesel are unquestionably the big sellers in the area due to not just the farming, but also the oil industry. The oil industry brings more revenue into this part of the province than all of the other service industry’s put together.

I know for a fact that many of the locals are taking their vehicles for both servicing and also purchasing to other Chrysler dealers that are 60 to 80 miles away.

The building is within 10 to 15 years of age, very presentable with little modernization needed at least in my eyes.

Thanks

Tim

 

[jkracer9]

Re: Help, how to buy a Chrysler Dealer Ship

if you are married have your wife buy it, there are plenty of minority ownership plans that the government will help you with and I am sure that the factory has minority ownership plans also.

 

[genXgts]

Re: Help, how to buy a Chrysler Dealer Ship

Tim watch out on a DCX only dealership, have you been following market share percentage points as of late?

Each point is worth billions and DCX is dropping like a rock, that's fact. My opinion is even moreso in Canada, as we are a cheap lot up here, profit laden Grand Cherokee, Pacifica, and the like are a tough sell.

For the first time in the history of the automobile Toyota outsold DCX (mind you a narrow win, for August sales only) but that in it's self is not a good sign. Heck, even the Toyato pres was shocked!

Be very careful, I guess I'll stop there, email me if you want the skinny, I track this stuff.

 

[BigCarrot]

Re: Help, how to buy a Chrysler Dealer Ship

That's great advice! Some manufacturers require you to have managed a dealership before. I'm not sure if Chrysler does or not. One thing is for sure, a dealership is grande money!

 

[FranciscoR.]

Re: Help, how to buy a Chrysler Dealer Ship

Bit of Business advice my uncle gave me, never start or try to start a business of one sort, when one of the same has failed in the same place.

 

[Craig 201 MPH]

Re: Help, how to buy a Chrysler Dealer Ship

Bit of Business advice my uncle gave me, never start or try to start a business of one sort, when one of the same has failed in the same place.

I dunno if that's 100% correct. Maybe the previous place was mismanaged and all it needs is someone who knows what they're doing. "Failed" businesses can have potential and can be picked up pretty cheap by people just wanting to unload them.

No to say you're uncle is wrong or anything, I just tend to be more optimistic.

 

[FranciscoR.]

Re: Help, how to buy a Chrysler Dealer Ship

I'll give you that much. He didn't mean don't try, fi things weren't manages correctly. Best example i can give you is of a RC track. had one 15 minutes away, it failed. People came down to plot next to dealorship, it failed. People bought it, tried to keep it going, it failed. I am speaking moreso of the businesses that have literally tried to succeed but haven't.

 

[phiebert]

I’m looking for suggestions on the protocol in contacting Chrysler to pursue this a little further. If not with this dealership, than possibly with another.

Would anyone be able to point me in the right direction, what is it Chrysler is looking for, and any idea on capital requirements etc?

Thanks

Tim

Hey Tim, how's things, recovered from Indy yet? If you're interested I can send you the email addresses for a member or two in our local region who have dealerships. You got to promise me good prices on parts though!

 

[Matt M PA]

If sales are bad...Chrysler may actually opt to terminate the franchise at that location all together.

That said, it sounds like you will be in competition with other current dealers to get this place. And, with no dealership experience, you'll lose. The manufacturers have to approve any sale.

 

[jkracer9]

I agree w/ Craig 201
Just because someone failed is no reason to back off. I am sure if that were the case half of any town in America would be filled with vacant buildings. Nothing can be further from the truth. Maybe in the restaurant business it is harder once bad management and or food has closed the doors but then again not always.
Other failures have opened the doors to many success stories. Francisco, It is alwayd better to take the chance it is better than the sidelines.

 

[ViperJoe]

Factory dealership sales are normally "inside sales" either through the manufacturer (someone THEY want in there) or through the dealer (to a friend, family member, existing manager etc).

Good luck!

 

[joe117]

Sundre Alta, that's a strange name. What's it mean?

 

[Tim]

I’m impressed with all of the response that I have received so far. I will take up Ryan’s offer of the stats.

Pat, can you e-mail me those names and numbers and I will give them a call? If I am lucky to put something together, I will make sure that you receive the “corporate discount” Maybe we can do something for the members of our chapter?

I know that getting into this will not be easy. But then again everything I have done has never been easy and has always been different from everybody else.

That probably goes for most of here in the Viper Club. If we were like everybody else we would all be driving Corvettes and Mustangs and there wouldn’t be any Vipers.