Hey guys,

I'm in a class entitled "Small Business Application and Development", and it's basically a project oriented class where we are to develop a business plan. Anyways, while I know what a business plan is, the business I'm creating for this class would be a car dealership/shop similar to how Ganley runs their operation. I know a lot of you guys are business people, and I'm posting here to possibly get some input from Jeff or Joe.

Basically, all I really need to know is in general on what is required to get a brand. Like if I want to sell Honda, who do I contact, and are there any prerequsites? If anyone knows anything about any other brands, that'd also be very helpfull. I just have no idea really where to look to get started.

If specifics are unavailable, just some generalities to get me started. Of course, I value any input not just from Jeff/Joe, but from anyone here.

Thank you so much guys.

 

I'm starting a second business as we speak. It's been 3 months of hell.

Although mine isn't a car dealership, I do have a few clients that are big dealers in town and one of them has been chasing a Cadillac Dealership. There a various rules for them to get a dealership. The biggest obstacle they are having is that they have to be at least 10 miles (as the crow flies) from the next nearest dealership.

 

i never knew that..
actually, i was wondering how big volume dealerships like chevy/ford, etc.. always seem like they are at every corner. i wonder if that applies to chains as well like mc d's, starbucks, etc...

sorry for going ot... rich answered a question i was wondering about for quite sometime.

 

So if I'm interested in acquiring a specific brand, is there a specific type of contact person at the company I need to get in touch with to find out the requirements, or is there an internet resource available to get the information?

Thank you for the assistance thusfar.

 

Nothing like that is really off topic, Motoo. Any information I can absorb from you guys will help me out, even if it isn't directly related.

 

Zone area is a prerequisites and also operating capital. Depending on what make you are looking for a certain amount of capital is required before a consideration. There is also personal requirements that need to be met such as criminal and financial backgrounds.

 

If you've ever been to downtown Seattle, you'll know that Starbucks has no proximity rules.

One thing with the "corner" Ford/GM dealerships - most of them are older, and there were fewer rules on proximity, capital, and volume potential. Just about any truly new dealership is going to be a "supercenter" with 4-6 makes, and many acres of lot for used and new cars, financed by a multi-dealership company with substantial credit and cash reserves..

 

I'm not sure if I'm misunderstanding the scope of the assignment, but acquiring the brand seems like a pretty minor step in the whole plan. Some things you'd need to assess if you wanted to open a Honda/Acura dealer:

• Other dealers in the area. You want a location that will pull from a good sized population without directly competing with other Honda dealers.
• You need to identify a specific location that will allow for good visibility and access (interstate/major interchange, major roads, etc).
• The location should provide enough space for you to field a substantial used car inventory; or include a 2nd facility where you can sell trade-ins. Used cars are substantially more profitable to dealers.

Honda would want to see that, along with what was previously mentioned (capital/credit, clean history, etc) before they'd even talk.

As for getting brand acquisition info, the best info I could find is the main AHM corporate number - 310-783-2000 - you could call and ask the same questions you're asking here, and see where they route you. As an interesting side study, you and a friend could both call; one pretending to be serious and the other being upfront that you're a student doing a class project; see where each leads.

 

Yeah, it is a minor scope of the project, I'm just asking for that information because I'm aware of the need to pick an ideal location. I just know more about doing that than I do acquiring the brand, that's all

Thanks for the help guys.

 

Okay...


Did you try calling that number?