Description of the business for sale
This highly profitable business is an online auto remarketing company. They utilizes a proprietary distribution system, developed over the last five years, to significantly improve the operational margins of this business type while providing a platform for regional and national expansion. The company purchases late model off lease vehicles from wholesale auction houses, internet based closed auctions, trade-ins, and other sources, and then remarkets these vehicles through its web site distribution system to consumers. Autos are inspected, repaired if necessary, and detailed to restore an almost new appearance. All cars are sold with a sixty day limited warranty. Customers have the option of financing their purchase through the company, and buying an extended warranty.
GROWTH: Growth potential is unlimited and comes from several avenues. First, the current inventory can be significantly increased. Second, additional locations can be established at modest cost. Centralized buying and the web page expansion do not increase costs at all. Third, the company can continue to add independent contractor sales associates. These individuals bring buyers who are looking to purchase specific vehicles which can be found at auction. A successful contractor can be expected to add $4,000 per month to the bottom line.
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Support / Training provided by seller
The owner will provide four weeks of training at no charge to facilitate a smooth transition. The seller will consider a continued compensation based relationship with the new owner.
COMPETITION: New and used car dealers offer the greatest competition for automobile remarketing. This company s model appeals to the knowledgeable buyer by offering the lowest price of any legitimate dealer. The buyer receives the same warranty as from a conventional dealer. Unparalleled selection at the lowest price results in a 50% buyer repeat rate.
ADDITIONAL FINANCIAL INFORMATION:
• Inventory: $175,000.
• FF&E: $100,000.
REASONS FOR SELLING: Owner has other business interest
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Description of the facilities
The company has a 1,000 square foot office and an adjacent 10,000 square foot lot in an industrial area. The company is investigating relocation to a space better suited to accommodate anticipated growth.
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