Automotive Updates

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By Phil Villegas

Many dealer groups are betting that automotive retail sales will recover at a quicker pace than the rest of the economy. There are valid reasons to believe this.

By Phil Villegas

What single element defines a successful dealership?

Is it simply about having the right franchise or having a high-volume location or sole market representation? Maybe it’s having a strong fixed-operations department or great customer service?

By Phil Villegas

For the past decade, Toyota dealerships have been the “prized” operations to own in any market.

These dealerships have been at the very top of the list for any dealer or group looking to expand. A few years back, Toyota dealerships would routinely command a 10-times Blue Sky multiple.

  • 03/01/2010
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  • Comments Off on In an Era of Shrinking Budgets, Dealers Should Not Overlook the Cost of Inefficiency

By Marilou C. Vroman, CPA, CFE

Published in:  Professional Auto News

Under any economic conditions, successful dealers look to run their businesses as efficiently as possible. Now, facing serious financial pressures, efficiency has taken on new meaning, and many dealerships are searching for additional ways to reduce expenses and improve margins. While this strategy is necessary and even advised in some cases, too much cost reduction – and cuts in the wrong areas – can be as damaging as the overarching economic realities that we all face.

By Phil Villegas

Most dealers I know feel that, unlike past recessions, this recovery will be much slower and with a greater sense of fragility.

But while the economy may be in recovery mode, this does not mean we are out of the woods yet. For many dealers, 2010 will be more challenging than 2009.

By Phil Villegas

Last month, I recommended that dealers look beyond the monthly cycle reporting. This month, I’ll tell how to do that.

By Phil Villegas

Ask dealers how business is, and most likely they will respond by telling you how they did last month or how they are currently doing this month.

By Phil Villegas

While a number of good dealers would like to exit the industry, the current market conditions are less than ideal. It may be at least two years before the dealership transactional market returns to acceptable levels.

By Phil Villegas

Despite welcome positive signs the recession may be ending, dealers should not become lured into a false sense of economic security.

  • 09/01/2009
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  • Comments Off on Recognize, Take Good Advice – Listening to advisors helps you tackle buy/sell transactions

By Phil Villegas

Dealers who have been through either the purchase or sale of a dealership know the stresses associated with executing that.

From the seller’s perspective, stresses can come from the thought of exiting the business, informing employees, negotiating the purchase agreement, tax implications of the sale, winding down operations and the ability of the buyer to close the sale.

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