Do you want to start a car dealership business by buying a franchise? If YES, here are 2 best car dealership franchise opportunities for sale and their cost.
There are loads of opportunities for aspiring entrepreneurs to own businesses all across the world and one of the most convenient routes is to buy the franchise of an existing and of course successful company that is into franchising.
If you are looking towards owning a car dealership franchise in the United States of America, then this article will be a good fit you.
Recent statistics has it that the total annual revenue for used car dealership in the United States of America is US$370 billion with an annual growth of 2.4 percent. With a massive annual sales of nearly US$370 billion, one can confidently say that the used vehicle dealership industry represents almost half of the United States’ auto retail market and it is of course, the largest retail segment of the U.S. economy.
In the United States used car dealership market, the top four major players account for less than 20.0 percent of industry revenue in 2015, with the biggest used car dealer, CarMax dealership, generating about 12.6 percent of revenue. Recent findings also indicated that the industry concentration has increased over the last five years prior to 2015.
The automotive industry, with reference to car dealership is flourishing because more and more consumers are becoming aware of the need to cut unnecessary spending as it relates to purchasing cars, insurance policies and also the need to sell used cars as fast as possible.
If you are cool with starting a car dealership franchise in the United States of America, here are some of the best franchises you can choose from.
2 Best Car Dealership Franchise Opportunities for Sale and Their Cost
- Dealer Specialties Int’l. Inc.
Mike Nenni came up with the idea for Dealer Specialties while working as a dealership sales representative. Nenni saw a need to give buyers of used cars detailed printed information about the car, much like what’s found on a new car’s window sticker. With the help of his brother Jack, a software programmer, Nenni developed a program that captures used vehicle information on a computer, prints out a window sticker and electronically transmits the information.
Dealer Specialties stickers tell buyers about a car’s make, model, year, color, engine, fuel system and transmission details as well as media reviews, an FTC-required buyer’s guide, and a Carfax vehicle history report. Company representatives also take digital photos of the car that they can post with the sticker information on their Web Site.
The company was founded in 1989 and they started franchising in 1996, about 23 years ago. They have their corporate head office at 60 Overbrook Dr. Monroe, OH 45050.
Dealer Specialties Int’l. Inc. has relationships with third-party sources which offer financing to cover franchise fee, startup costs, equipment, inventory, accounts receivable, and payroll. The company is seeking new franchise units worldwide.
- Initial Investment – $10,200 – $35,400
- Initial Franchise Fee – $2,500 – $2,500
- Ongoing Royalty Fee – $0.66/unit
- Ad Royalty Fee – $0.02/unit
- Car Talker
In partnership with The Dow Chemical Company, Jim Ferguson and Mark McKinley created CarTalker in 1994. The system attaches to cars, trucks and other vehicles, playing recorded vehicle information for after-hours shoppers at the touch of a button. The system also lets the shopper leave a message for the dealer.
Franchising began in 1999 with franchisees selling the CarTalker to auto dealerships, recording messages and maintaining displays. The parent company is also the franchisor of Pump Radio Network. The company is seeking new franchise units throughout the United States of America.
- Initial Investment – $31,800 – $40,300
- Initial Franchise Fee – $10,000 – $10,000
- Ongoing Royalty Fee – 6%