Fully describe the business's activities?
A used car dealership operating from two properties. Vehicles are sourced in from various suppliers displayed on the showroom area and sold to customers. The Owner wishes to sell the dealership as well as the property. A 3rd property which is rented to a repair shop is also part of the deal. The premises is on the corner of a busy intersection with huge display boards.
How long has the owner had the business?
The owner started the business
How does the business operate on a daily basis?
Used vehicles are sourced from various suppliers. These are displayed on the premises. Buyers will visit the display area and the salesman would conclude a sale.
How are the clients attracted to the business?
Name boards in front of the property
Does the business have any contract work?
What competition exists?
Yes there are other dealers in the area.
Are there up-to-date Management Accounts available?
This will be made available to serious buyers
What percentage of the business is cash/credit?
All cash sales
What is the age analysis of the debtors book?
No debtors book
How could the profitability of the business be improved?
Additional marketing campaigns
What is the payback period?
What is the ROI?
What is the total staff complement?
2 x general Worker 1 x manager /sales person 1 x admin / sales The costs is according to these 4 people, however the new owner would need to appoint his own sales people.
Give a breakdown of staff/ functions/ length of service?
All staff is there from the start of the business
Do any receive special perks or incentives?
Are they on contract?
Do any have management potential?
How involved is the Owner in running the business?
100% involved on a day to day basis.
What are the trading hours?
8 to 5
What is the square meters of the business?
1. Workshop 250 sq m 2. Display area 250 sq m 3. Display area and office 500 sqm
Who is the Owner/Landlord?
The seller is the owner of the property
Do you require a licence?
The only license is "Permission to trade in second hand goods" This is registered in the name of the trading company and need to be renewed every year. The only other requirement is a register of all second hand stock bought and sold which needs to be kept up to date for the Police
What are the main assets of the business?
Are any items not included in the sale?
The tools in the workshop of the display area as well as the stock of use vehicles. The current owner is open to negotiations and is willing to accept reasonable offers in addition to the current price. Current used vehicle stock is R1 500 000 and tools R500 000.
What is their overall condition?
Do any require repairing?
How have they been valued ?
Which assets are on lease/HP and with whom?
Reputable name Corner stand at busy intersection 3 separate premises which could be used as one or 3 separate entities.
The new owner can either use the property as an investment opportunity or continue trading. An online presence could increase turnover.
There are other dealers also nearby and you can lose market if your service and products is not of a high standard
What is the reason for the sale?
The owner is in the business for the past 25 years and want to retire.
Why is this a good business?
The property is located at a prime spot on a corner of a busy intersection. The buyer does not only get the property but also the business rights (trading company) to a very well known and reputable second hand car dealership. The property is registered as CC and the trading company as PTY Ltd.
What is the price plus stock and the net profit?
Price for the property including the the trading company is R4 400 000. The trade stock and equipment can be negotiated with the owner on the date of sale. The current value is around R2 000 000.
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