Well Established Used Car Sales Specialising In Prestige Performance And Sports Cars | | Undisclosed Surrey | | Well-established Used Car Sales Specialising in Prestige, Performance and Sports Cars with or without the benefit of an attached mechanics workshop Confidentially offered for sale Ref. no: AL190 Location: Surrey Asking price: £100,000 | | BUSINESS FOR SALE ADVERT DETAILS ADVERT NUMBER : 55267
ADVERT IMPRESSIONS : 27,358 TIME(S) | | | | BUSINESS SECTOR: | Motor & Transport | | TRADE TYPE: | Car Sales | | SALE: | Agent Sale | LEASEHOLD: | £100,000 | | | | | | | | | | Add this business advert to your: | | | | | | | | | | | | | | | BUSINESS DETAILS: | Business profile:
With a garage on the site for over one hundred years, in its current guise for over thirty and acquired by the current Owners over six years ago, this business is the first port of call within its area for anyone looking to acquire a quality used prestige, performance or sports car, with the occasional family car thrown in. With the highest selling vehicles towards the more prestige end of the used car market such as Audi, BMW, Mercedes, Porsche and VW, this business specializes in vehicles with mid market retail values, between £6,000 and £45,000, with an average price of £12,000, a price band carefully chosen and proven to be very successful to match the demands of the local marketplace. Stock is typically under 5 years old and has less than 60,000 miles on the clock. As well as retailing its own vehicles, the business also takes in customer’s own vehicles which it offers on a ‘sale or return basis’ and as a result some retail values can be much higher.
Available with or without the benefit of an attached mechanics workshop, the business operates from an ideal location in the heart of the Surrey countryside – and close to some of the most affluent towns and villages in the south east of England. The site has space for between 35 to 40 cars in total and is ideally placed for easy access from the M25 and other motorways, but perhaps most importantly quiet open roads which are perfect for test driving.
Almost all of the stock of this business comes from Internet based trade sites and are hand picked from major reputable auctions – routes which have consistently provided the best available quality vehicles at the most appropriate prices, to ensure good margins in the end-user marketplace, as well as customer confidence in the proven heritage and quality of the vehicle itself.
Many customers have been loyal to the business for a number of years and this has been due in no small part to the business's undoubted knowledge of the used car market, its competitive prices and the choice of vehicles it always has readily available. Product knowledge is extensive and customers know when visiting this business that they will be dealing with the Owners – people able to make a decision during sales negotiations. After sales service is excellent too – all vehicles are HPI cleared and supplied with service history, MOT, service (where required) and a comprehensive pre-delivery inspection. All this has ensured this business has an enviable reputation right across the industry.
Well established, trading from a prominent location and with a loyal customer base, this represents an excellent opportunity to acquire a key independent dealer in the prestige, sports and performance used car sector. Despite vehicles being difficult to source in the current climate, turnover for the current year is forecast to be in excess of £2.1m generating gross profits of almost £230,000 and an adjusted profit for the owners of the business in excess of £150,000.
Customer service:
The business considers that happy customers return and on that simple basis has maintained levels of product and service quality intended to best guarantee that happiness. The results of this commitment are evident in the degree of return custom and the choice of this business by customers in preference to competitors.
The business offers the AA Warranty Dealer Car Extended Guarantee with each vehicle sold, the duration with each vehicle is for 6 months or 6,000 miles (whichever is sooner). This can be up-graded for most vehicles, up to 3 years or 36,000 miles.
Key strengths:
The business is very well established with a strong, loyal customer base – many customers have returned to this business for their second, third and even fourth car. This business has an outstanding reputation ensuring a constant stream of customers - earned for its honesty, reliability and casual and open customer experience. It has an established network of suppliers and its stock is perfectly selected and priced to take maximum advantage of a significant market.
This business is ideally located – its prominence guarantees access, visibility and footfall and with easy access to the M3 and M25 motorways and local mainline train stations less than forty minutes from London, customers are drawn to this business from all parts of the UK. Situated next door to a garage workshop the business has an excellent relationship for dealing with last minute repairs and servicing requirements – a facility that is also available to new owners wishing to take it over as well.
Key opportunities:
There is an outstanding opportunity to build on the existing business levels and customer base of this company. With a strong demand for the vehicles sold by this business, a new owner contributing fresh ideas, motivation and enthusiasm, will have every advantage of building on an excellent platform.
This business maintains an extensive base of satisfied customers who appreciate the company’s products and service. This is an excellent acquisition opportunity for anyone with greater resources available than the current Owners. Additional working capital – to increase the levels of stock available – and the introduction of additional sales and buying staff would significantly impact on the activity levels of this business with a corresponding improvement on turnover and profitability.
With fewer and fewer retail sites available in areas which generate good levels of passing traffic, this would also be an ideal acquisition for a main dealer looking for a satellite site to sell on vehicles it has taken in on part exchange – particularly if the on-site mechanical workshop was taken on in addition.
Premises:
The business is located in a very prominent location close to the M25, M3 and A3 motorways.
The site also has a safe, CCTV, security lighting and a monitored call-out alarm system.
There is a large well-lit showroom with capacity for approximately ten vehicles with a kitchenette, a separate large office/reception area, public WC facilities and a large forecourt area which can be seen by all passing traffic and can accommodate a further forty or so vehicles. There is also a separate valeting and preparation bay. Parking is also available in the immediate surrounding areas.
The garage:
On site and adjacent to the used car sales area is a specialist mechanics workshop with capacity for five cars being worked on at any one time. There is also ample outside space for waiting vehicles. This part of the site is currently sub-let and provides the owners of the business with income of half the rent, Rates and Utility bills but this arrangement can easily be terminated depending on the requirements of the new Owners.
The site is leasehold with 15 years remaining under the existing arrangement. Rent for the site overall is £42,000 with Rates of approximately £10,000.
Opening hours:
The business currently operates between 9.00 am and 6.00 pm, Monday to Saturday and between 10.00 am and 4.00 pm on Sundays.
Employees:
The two current Owners are responsible for the day-to-day operation of the business with some administrative support and a full-time Valeter.
Marketing and advertising:
The business uses the Autotrader website very successfully as well as other Internet based sites for acquiring and marketing vehicles. The business also has its own very well designed and informative website which performs very well in all of the major search engines for all appropriate search terms.
A high proportion of the business's revenue however is due to its very prominent location and to no lesser extent due to its excellent reputation for quality vehicles at competitive prices which generates repeat custom and strong word of mouth recommendations.
Financial information:
The business is offered for sale as a going concern. All financial discussions will take place directly between the vendor and all interested parties under the auspices of Turner Butler.
Turnover for the financial year ending March 2011 is set to reach £2.11 million generating a gross profit of almost £230,000 and an adjusted pre-tax net operating profit slightly in excess of £150,000.
The Asking Price of £100,000 is for a sale of the assets and goodwill excluding stock - with the new Owner able to determine the appropriate level of stock from what is available at the time of Completion, in addition to the Asking price.
Reason for sale:
Having been in the motor trade for a number of years, the current Owners wish to pursue other business interests.
Support and training:
The current Owners will provide all necessary training and all relevant contacts to ensure a smooth the transfer of the business.
| | | | | | FOR SALE | | | | | REFERENCE: | AL190 / RightBiz | | | | | | Request more information about this business.. | | ENQUIRIES: | | | | CONTACT SELLER TO GET THE SELLERS DIRECT CONTACT DETAILS AVAILABLE TO MEMBERS ONLY | | | | | | | | | | | |
