Dealerships are a complicated business. In past columns, our contributors have pointed out that the new breed of investors looking at dealerships may need to be educated as to some aspects of the dealership business.
When you get down to the nitty gritty details of a buy sell, there are few more complex issues then how to value your parts inventory. In this issue, Mark Payne of Total Dealer Solutions points out the pitfalls of not having your parts counted and accounted for before it is time to close the deal.
Dealer Agreements are something every dealer signs. When it comes time for the renewal, do you routinely sign on the dotted line? You shouldn’t, advises attorney Erin Tenner. There may be changes in the fine print that can negatively impact you at the time of a buy sell.
I returned from China last week after visiting Auto China, the largest annual international auto show in the country. I saw lots of SUVs. Just as in the U.S., the SUV segment is hot in China. Chinese are also into multi-purpose vehicles, meaning vans, ranging from fancy executive vans to your traditional minivan. I heard that another Chinese automaker, Guangzhou Auto, is looking for distribution here in the U.S. I reserve judgement on the quality of its vehicles as I haven’t examined them closely. Its strategy is to compete on price, not a successful approach in my opinion.
Back here in the U.S., we also have this week’s Transaction News.
Alysha Webb, Editor and Publisher