Thoughts on Small & Medium sized Car Dealerships in Today's Consolidation Happy Marketplace

The World for Car Dealers has changed dramatically since 2008 when it seemed recovery may never come.  Since that time sales have recovered and outside investors are more and more interested in buying up dealership groups.  This has led to lots of consolidation in the marketplace and great opportunities for Dealers who now have to ask themselves...Should I stay in?...Should I get out?...Should I expand....Should I sell to someone who wants to expand themselves?

These are all tough questions with no easy answers...but great questions to be able to ask yourself.  Because it is a great time to be in the car business!  The article below came to us from one of our partners and it is a good one, but we see some immediate issues with it:

It is fine in the short term to think this way.  Yes, you can survive and thrive in an up market.  But what is your long-term plan? Some questions to ask:

• Do you have a succession plan and how does this short-term thinking fit into it? 
• What happens when the economy dips again and there are fewer car buyers...will you be able to still prosper?   
• Does it make more sense to take advantage of the consolidation trend and get top dollar now than to stick it out alone?

What do you think?

With over 35 years of experience and expertise in this region GW Marketing Services is in the business of introducing our clients to deals which take maximum advantage of the opportunities this trend has brought or to guide them in selling their dealership! From brokerage services to appraisals and market consolidation should there be a need to discuss your future business strategy, please don't hesitate to reach out.