This is a once in a lifetime opportunity to purchase an established, profitable Ford dealership and market territory that is located just 25 miles from Raleigh, the capital of North Carolina.
The business features world-class products from Ford Motor Company, including the iconic Mustang and best-selling F-Series trucks. This business was established in 1994 and has a solid record of profitability. Last year, top-line revenues topped $4 million and the business delivered over $400,000 in cash flow. The planning volume for the market is 240 new vehicles and the 10-year units in operation (UIO) are 3,897. Although the present operation is focused primarily on the sale of used commercial vehicles, there is excellent potential to improve new vehicle sales, parts, and service profit contribution.
The surrounding trade area is growing with an estimated 2018 population base of 40,965 with average household incomes over $61,000 (based on ESRI Demographics).
The business has also been pre-qualified for an attractive financing package. A sales and profit forecast highlighting the future potential of the dealership is also included in the marketing prospectus.
The present facility is located on a busy State Highway traffic corridor that connects the dealership to its customer base as well as provides for swift, convenient access into Raleigh and neighboring Wake Forest. The corridor includes a major shopping center (with a Wal-Mart anchor) only 5 minutes away from the store as well as fast food restaurants, large franchise retailers, local and federal offices and other community retailers. Traffic counts average around 20,000 daily right outside the present dealership location. The facility is situated on two land parcels totaling 1.62 acres and with a 9,180 square foot building which includes showroom, office and parts/service department. The seller is offering the property for $3,000/month on a 3-year triple net lease with renewable options if desired. NOTE: Given the age and size of the present facility, it is highly probable Ford will issue a term Sales and Service Agreement conditioned upon approval of the buyer constructing a new facility which complies with the latest dealership image requirements and facility sizing for the market potential. The cost of purchasing land and the new facility construction costs have been accounted for in the sales and profit forecast. Actual costs will depend on buyer preferences and direction from Ford Motor Company.
While the dealership has demonstrated consistent, stable and sustained profitability for a number of years, there is excellent growth potential when considering national group average performance levels. A sales and profit forecast is included in the marketing materials. Major opportunities include ... 1. Hiring and training additional sales personnel 2. Implementation of a more aggressive marketing plan, including internet 3. Hiring additional parts and service personnel 4. Finance and Insurance revenue opportunities 5. Larger facility and ability to stock higher levels of inventory 6. Stronger attention and focus on new vehicle sales
Given the close proximity to Raleigh and Wake Forest, this business competes with 4 other Ford dealerships within a 25 mile driving distance as well as several competitive stores from Chevrolet and Dodge, the two primary domestic competitors to Ford. Since 2015, the assigned market area has averaged approximately 2,200 new vehicle registrations per year with strong Ford brand market share performance.
After 25 years, the present owner is retiring to focus on other business interests.
Will train for 4 weeks @ no cost. Products and services include the sale of new cars, new trucks, new utilities, used vehicles, finance and insurance products, extended warranties and parts and service offerings. All required business licenses and zoning approvals are current and valid with the appropriate municipal jurisdictions. Ford Motor Company's stated goal is to appoint dealers who can improve sales, maintain profitable dealership operations, achieve high levels of customer satisfaction, and provide the necessary unencumbered cash and capital structure to properly capitalize the store. They seek candidates with a history of achieving share targets, operate at or above established working capital guides and most importantly, deliver an exceptional customer experience in a properly brand imaged facility. The approval criteria is focused on a candidates "4 C's": Capital, Character, Capacity and Customer Satisfaction.