It's almost as if people forgot that dealers still make money selling cars at MSRP...

 

Anyone have info on how much it costs to buy a Porsche dealership, and how much profit the owner makes in good and bad years?

 

I believe so. I haven't been offered a GT3 allocation period so I can't say for sure but rumors are they were charging markup on certain models.

 

Yeah, a dealer selling GT cars at MSRP will not be going bankrupt anytime soon.

 

There was thread a few years ago. Explained profit percentage on msrp base sales price of the car and profit on added options. This is before ADMs lol. Service probably covers most payroll anyways. If I remember correctly options had highest percentage. But then have to take into account real estate, payroll etc etc etc. Regardless, they make good money. I remember my first GT3 I got $1500 off back in 2009 for a 2010 😅. Last week I got a 3RS allocation for $75k. I don’t like it but it is what it is. Let’s get together with some people and buy or build a new dealership 😁.

 

a local dealership sold for 18 millions and change 3 years back
not sure about other details
a MB dealership sold at the same time for 28 millions
both acquiring owners were somewhat medium size corporations with 10-20 dealerships from Florida

 

Crowd funding a Porsche dealership only to spend $18 million and still only get two STs. 😂

 

I'm sure I know all the answers to this question, and my public answer is:

It's very difficult. If there is any blood in the water that a dealership is for sale, there are a lot of VERY wealthy, yacht owning dealers or public companies willing to spend a little more than the little guy to buy one.

FWIW building a new dealership to the Porsche corp image is quite pricey. Like custom home in a coastal city pricey per sq ft.

 

Sort of like buying a sports franchise.

 

lol

My (small) local dealership that pumps out some pretty remarkable revenues was bought out by a larger franchise over the Summer.
The rumor mill says that it sold for nearly 3x your number. This same automotive group paid $48.6 million in March of this year to acquire Carson Toyota,
which is the largest car dealership in the Auto Row of Carson. According to an article that I read, the auto group took out "about a $39 million loan" from Toyota Motor Credit to finance the purchase on more than a half-acre of land.

 

FJ was able to secure a loan because they have over a billion (or maybe even 10x that) in annual revenue across all their stores... They're also a darling of MB, Audi and P because of their constant real estate projects. It helps when you have the claim to being 'the largest volume MB dealership in the world' for something like 20 of the last 30 years (FJ Newport Beach MB)

once again those type of financing things are 'relationship based' and have zero chance of being landed by small / medium dealer groups.

 

They also bought Circle Porsche if I'm not mistaken.

 

correct. the former ownership on circle was very happy to receive generational wealth in exchange for his porsche store

 

Deleted

 

Maybe he’s right, maybe not