Used Car Dealerships

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September 08, 2022

by a searcher from Louisiana Tech University - College of Business in Houston, TX, USA

Does anyone have experience acquiring used car dealerships? Are they good acquisition targets and can they be run as an absentee owner ? Currently looking at a couple and any tips and advice would be helpful

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Reply by a searcher
from Campbell University in Emerald Isle, NC 28594, USA
Once upon a time I worked as an accountant for a multi-car dealership co. (both new and used dealerships totaling 4 lots) and the owner of the business was pretty involved. He spent a good deal of his time traveling to auto auctions across the southeastern US to buy cars at auction and would have them shipped back to us. We would cut checks left and right for all kinds of payables, especially on used cars (many of the used cars bought at auction needed various repairs and cosmetic touch ups). Not to mention that the owner's son (GM), twin daughters (sales and CFO), wife (office manager), and an uncle that ran to the DMV and the bank all worked in the company!

From my experience and vantage point, running a car lot, especially a used car lot wouldn't be an absentee situation. Perhaps the owner could've hired someone to go to auction for him, but I'm sure he had his reasons to do it himself.
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Reply by a searcher
from Louisiana Tech University in Houston, TX, USA
Thank you for the tip. It seems like it has its challenges like any other business and sound like the guy in your example wants to keep it in the family.
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