Dealers complain a lot about manufacturers’ facility image programs. But once they spend the money to upgrade their dealership, dealers are often rewarded with a stream of income from the manufacturer to help offset the cost. And though dealers might grouse about the expense, they know that an upgraded facility can usually help the bottom line, so long as they don’t have to repeat the remodel in a few years.
One such program, GM’s Essential Brand Elements, expires at the end of 2016. In this issue, CPA Ken Rosenfield considers the impact of the EBE on a dealership’s value and whether or not participating in whatever image program succeeds it adds to a dealership’s value.
Anyone who has seen the May sales figures knows that most automakers, and therefore most dealerships, are on a hot streak. In such a market, the value of dealerships is also rising. That rising value can make it difficult for a family member to come up with the capital to buy a dealership in a succession situation. A captive insurance company is one possible solution. In this issue, Mercedes Hendricks of Dannah Capital Partners discusses how that would work.
We also have the latest Transaction News.
Enjoy!
Alysha Webb, Editor and Publisher
