Used Car Dealerships

by a searcher from Louisiana Tech University - College of Business

1 year ago

Does anyone have experience acquiring used car dealerships? Are they good acquisition targets and can they be run as an absentee owner ? Currently looking at a couple and any tips and advice would be helpful

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searcher from IE Business School

Hey Olu. I spent the previous chapter of my career in car world. Happy to chat with you on this but it is definitely not a good business for an absentee owner. I would discourage you from buying one without an experienced operating partner whose acumen you can verify -- it's extremely easy to lose money in used cars. For one, we're talking about a tight margin industry where, outside of the last 24 months, your inventory's market value erodes on a *daily* basis.

The guy in Elisandro's example has some other reasons for "keeping it in the family," which would take a while to get into here.

1 year ago | like reply | 0 likes

searcher from Louisiana Tech University - College of Business

Thank you for the tip. It seems like it has its challenges like any other business and sound like the guy in your example wants to keep it in the family.

1 year ago | like reply | 0 likes

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