What car dealership brand costs the MOST to purchase?

So you're thinking you may want to buy a dealership and you're wondering which are the most affordable and which are the most expensive.

We'd all probably guess that a domestic dealership would be worth the least because of all the troubles surrounding the business.

But did you know that a Lexus dealership costs the most, commanding a premium of up to TEN times annual profits!

See quote from the Detroit Free Press below:

'Sheldon Sandler, founder of Bel Air Partners, a New Jersey financial consulting firm specializing in auto retailing, said the priciest of the major dealerships to acquire now is Lexus, which commands a premium of six to 10 times annual profits, in addition to its property. BMW and Mercedes come next, followed by Honda and Toyota, at multiples of four times profits.'

JUGNU - 5/16/2006 2:07:09 AM

+1 Boost

Great to know.

JUGNU

JUGNU - 5/16/2006 2:07:09 AM

+1 Boost

Great to know.

JUGNU

Hyundai - 5/16/2006 6:53:50 PM

+1 Boost

should be a motivational speaker. I am so pumped by that, that I will go and buy one!!! Thanks Ross!

Just kidding. With some education you would be able to manage it. Just a little hard work is all it takes (simplified).

EnnNorak - 5/19/2006 1:29:29 AM

+1 Boost

If the premium on top of the property is 10 times sales, then it is a poor investment even at today's relatively low interest rates which are sure to rise again. The buyer is assuming growth potential that rarely exists in practice. The seller is the shrewd businessman here and not the buyer.

Daytripper - 5/21/2006 5:27:26 PM

+1 Boost

Just think, as recently as the late 1960s makers of foreign cars were approaching gas station owners to get them to take on selling their cars from their stations. Honda motorcycle dealers were being asked to take on the new Honda 600 motorcar. A few lucky bastards were able to profit handsomely.