Starting an independent lux car dealership?...

[BadFish]

It's always been a dream of mine to own a Bimmer dealership. I know that getting an actual franchise is impossible, but I've been toying around with the notion of opening a dealership specializing in pre-owned lux / imports (specifically European cars).

Also, I'd like to include a first-rate Euro car service dept. (That would probably make more $ than selling cars.)

I llive in a small college town with no import dealers, but many of the students and faculty, who are from all over the country, have Bimmer, MB's, etc.

Many other people in town buy Euro imports, but have to travel hundreds of miles away to purchase them and have them serviced.

I have no car selling experience, but my bro-in-law owns a Chevy dealership, and I'll pick his mind for the mundane details.

What I'm wondering is how much start-up $ do you guys think you'd need to lease the property (remember - smallish town, so land's not too high), build a basic, but nice looking building, build and equip a fully-functional (3 bay or so) service area, pay a good import mechanic, buy an initial inventory (maybe 15 to 20 cars to start), and operate for a couple of years (before it would, hopefully, become self-sustaining)?

Can you think of any other issues, costs I'm missing, etc?

Thanks, fellows.

[Salvator]

It's always been a dream of mine to own a Bimmer dealership. I know that getting an actual franchise is impossible, but I've been toying around with the notion of opening a dealership specializing in pre-owned lux / imports (specifically European cars).

Also, I'd like to include a first-rate Euro car service dept. (That would probably make more $ than selling cars.)

I llive in a small college town with no import dealers, but many of the students and faculty, who are from all over the country, have Bimmer, MB's, etc.

Many other people in town buy Euro imports, but have to travel hundreds of miles away to purchase them and have them serviced.

I have no car selling experience, but my bro-in-law owns a Chevy dealership, and I'll pick his mind for the mundane details.

What I'm wondering is how much start-up $ do you guys think you'd need to lease the property (remember - smallish town, so land's not too high), build a basic, but nice looking building, build and equip a fully-functional (3 bay or so) service area, pay a good import mechanic, buy an initial inventory (maybe 15 to 20 cars to start), and operate for a couple of years (before it would, hopefully, become self-sustaining)?

Can you think of any other issues, costs I'm missing, etc?

Thanks, fellows.
You sound alot like a guy I once knew... started out selling refurbished (bought at auction, detailed with Zymol (before Zymol was cool!) looked good as new...) BMWs in a college town, minor repairs, that sort of things... Don't know how he is doing now, but here is his website:

http://www.eandeautosales.com/

[swchang]

I don't know, but wouldn't your brother-in-law have a much better idea? Sorry, wish I could help. Good luck, though.

[ger3sf]

Can you think of any other issues, costs I'm missing, etc?

Thanks, fellows.
Other things and expenses to consider...

1. insurance (liability, fire, theft, etc)
2. professional services (accountants, lawyers, etc)
3. bankers and lenders (inventory flooring, credit card processing, etc)
4. marketing and advertising
5. computer system(s)
6. ???

Oh, and we'll want free keychains, floormats and loaner cars... :)

[510kut]

I have no idea but I'm interested in just how much it costs :P

[TeamM3]

Q: Do you have $10 Million dollars that you can afford to lose if it doesn't work out? :dunno:

[SONET]

Q: Do you have $10 Million dollars that you can afford to lose if it doesn't work out? :dunno:

$10M would be pretty tough to lose in a venture like this, although I think some dot-commers could have pulled it off. :eek: IMHO to pull something that lame he would have to lose all of his inventory (and then some) without insurance plus suffer losses from a building fire.

I think it sounds like a good idea (it's pretty rare for a dealership to flop), but it also sounds like you have lots more research to do and even more startup capital to secure. :thumbup:

--SONET

[Dave 330i]

How about trying to sell one or two polished BMW out of your garage first. I'm saying that because the startup cost and overhead is probably prohibitively expensive.