There is much talk these days about the future of personal car ownership. With the advent of ride-hailing services such as Lyft and Uber, some are saying that in the future owning a car won’t be necessary. While some may decide not to own a car, using ride hailing services will not be the best option from a cost-effectiveness point of view, finds a new study by the Massachusetts Institute of Technology.
Even if the vehicles do not require human drivers i.e. they are autonomous vehicles, ride hailing is still more expensive than owning, the study found. That doesn’t mean dealerships can afford to ignore the changing dynamics of transportation, of course. But it does suggest the jury is still out on the future of private car ownership.
One change in the buy sell industry is the entry of a new kind of buyers, including private equity and family offices. That has created a situation where a dealer principal may continue to work at a dealership as a minority owner for some time after a dealership is acquired, even though he or she plans to eventually exit the job.
Dealer principals who chose to do that need to ensure they are protected from risks such as the new owners creating bad blood with the manufacturer. In this issue, our friends at Bellavia Blatt discuss some provisions that can protect a seller who sticks around as dealer principal.
The decision to sell can be a fraught one. If you do determine it is time, however, there is an option that can keep the dealership in the family, in a manner of speaking. The dealership’s employees may be able to acquire it, including through an Employee Stock Option Plan. Ken Rosenfield talks about that in this issue.
And of course we also have Transaction News.