For some dealers, completing a manufacturer application is simply a formality in obtaining their next dealership, for others, this is a major hurdle. Obtaining manufacturer approval for the purchase of a dealership can often be a challenging and daunting matter for many prospective dealer candidates.
The challenges in obtaining approval is one of things that makes being a United States retail automotive dealer great, because unlike other retail segments where the guys with the deepest pockets or the backing of Wall Street can squeeze out the competition, auto manufacturers know that their interests are often best represented by real car guys, not boards of directors or dealer wannabes.
However, manufacturers are large organizations and with any large organization, politics exist. Unfortunately, the interests of certain individuals can sometimes unnecessarily complicate the application process.
Here are some of the issues a dealer can face with obtaining approval from a manufacturer.
- Facility improvements and relocation
- Ownership and entity structure
- Operating experience
- Capitalization of dealership
- Pro-Forma financial statements
- Marketing and CSI plans
- Terms of dealer agreements
At Axiom Advisors, our role is to minimize or eliminate potential roadblocks in the application process. Our advisors have had application experience with every manufacturer and know that no two manufacturers, or two regions are the same. Our advisors will assist you in navigating the application process to avoid any disruptions and to get you to your goal…which is to launch your new dealership.