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anyone shopping at Ferrari newport, palm springs or san diego is buying from a billionaire.
anyone shopping at a Lithia store is buying from a billionaire, same with Penske or Autonation.
how do those experiences stack up?
@RG88 I definitely did not say "as long as I get cool cars I don't care about making money" -- my dealership stuff is so I can afford to RACE, which is a huge money toilet. Now that I have my land and construction plans secured for the newest Gen5 store, I will begin a new phase of my dealer journey.
It's WAY CHEAPER to buy cool cars or be a car collector than it is to be a dealership owner for these types of brands...however you get zero writeoffs if you're a retired MLB player with a car collection. So, in terms of 'making your money work' something like a dealership can provide a decent salary and lifestyle benefits that I was definitely not going to be able to afford if I went into coaching (80% of MLB Managers make 300-500k a year) along with the crappy travel side (gone for 6-7 months a year)
life as a dealer is good except when I have to discount the heck out of Audis to sell them...then it's just like any other job. BMW and Audi are more realistic job type roles and Porsche dealer GM is way way more fun.
@C.J. Ichiban You've got it! When I read your bio, after Sean C. told me who you are, for sure your MLB achievements, racing, and every other endeavor are beyond impressive, but I was most touched by your "straight edge" outlook.
We didn't get into our position to buy these cars by being careless and irresponsible with the money we earn. ADM is a poison in a capitalist society. Eventually, it will erode the very foundation of capital goods. Price will no longer reflect the cost of goods.
However, I do understand that a person needs to live his life on his own terms. Unfortunately, very few can.
Ironic.
Since no doubt yourself, like many here, got to the position in life where they are now, based on a "capitalist society" and market pricing, which is the non-inflammatory term for ADM, is really the quiddity of capitalism, not its poison.
Capital investment in dealership real estate can often require more cash than the franchise goodwill, depending on the brand. Unfortunately, too often the Tier 2 brands think they're Tier 1 brands and require more building than justified. The minimum in a metro market is approx. $20M+ for land and building. A cap rate of 8% translates into a $135k per month for rent expense alone, which is a load unless you're selling cars at strong grosses and/or sell at volume. It's true the owner of both the real estate and dealership can set the rent, but he or she should be setting it at levels that align with industry metrics (% of Sales or Gross) and cap rate, which often converge.
Note to the Car Dealer Guy: It's Por - Sha. I follow him on Twitter, but I find his information hit and miss.
Since no doubt yourself, like many here, got to the position in life where they are now, based on a "capitalist society" and market pricing, which is the non-inflammatory term for ADM, is really the quiddity of capitalism, not its poison.
Selling Toyotas is not a "grind", unless you don't like money. I'd take a Toyota store over an Audi store any day of the week.
I would think that the Toyota and Honda stores get grinded on price and cross shopped against other local Toyota and Honda dealers. That's exactly what I did when I bought my Prius back in 2012, I played the 3 dealers against each other for the last $100.
I would think that the Toyota and Honda stores get grinded on price and cross shopped against other local Toyota and Honda dealers. That's exactly what I did when I bought my Prius back in 2012, I played the 3 dealers against each other for the last $100.
I would think that the Toyota and Honda stores get grinded on price and cross shopped against other local Toyota and Honda dealers. That's exactly what I did when I bought my Prius back in 2012, I played the 3 dealers against each other for the last $100.
Not when you're selling Land Cruisers for 107k or about 35k over MSRP
I would think that the Toyota and Honda stores get grinded on price and cross shopped against other local Toyota and Honda dealers. That's exactly what I did when I bought my Prius back in 2012, I played the 3 dealers against each other for the last $100.
When I was in high school, I worked at a local Honda dealership detailing new cars a few blocks from where I grew up.
I started out in the motorcycle shop, but after I had a leave of absence due to breaking my foot in a MX race they wanted me to switch over to detail the Honda Accords that they were selling like "hotcakes" for $4,100 a pop.
Of course, this was back in the mid-70's when kids like myself were being paid $2.50 an hour and literally working in a sweatshop environment while the owner charged $500 per car in dealer "prep". Dealer prep involved washing and waxing the car, throwing in floor mats, and gassing up the car. That was it. Sometimes we added options like door-edge guards that we pop-riveted to the car or an occasional moon roof.
Sometimes, a salesman would sell a car that had an additional 50% in MSRP in dealer add-ons.
It was truly WILD.
There were waiting lists and line's around the block for the Accord.
The owner retired in 8 years and handed the dealership over to his son.
Sometimes 500cc World Champ Brad Lackey would stop by. The only American to do so.
Or Marty Smith would show up before one of the Trans-AMA races at Sears Point (Infineon Raceway) for an autograph signing day.
RIP Marty.
Last edited by Diablo Dude; 05-06-2024 at 06:31 PM.
05-05-2024 | 10:17 PM
