Moving into a dealership??? Good Idea, Bad Idea!

[Iron Duck Designs]

We have a used car dealership (nice used cars) that is right in the mix of a lot of new development around here. The used car guy moved into a huge dealership, and he isn't using the service area, except for storage...this place is right on the main drag and in a better area than we are in now...we were wondering if moving into a place like that was a good idea. It is right next door to two dealerships that we service, and it has tons of traffic drive by every day. We would have good signage and frontage...in the available space there is a large office, parking for 10 cars, and a garage bay that will hold 3 to 6 vehicles, depending on their size...any advice on how to get a good deal on the space...it is around 2200 sq ft...the used car guys seems interested, they aren't moving cars like they used to, and will probably be really interested in having another form of income from the property...advice? Good idea? Bad Idea?

[flat rock stan]

Probably a great idea just never trust a car salesman. Protect yourself with concerns in writing, signed and notarized.

Stan

[Guest Sunlimited]

Those guys will tell you whatever you want to hear. Cross your t's dot your I's.

[tintshopky]

Car guys know marketing and know money. My guess is you won't be able to afford it. My advice would be to be prepared with a number you can afford and make an offer of 50% to 75% of that number to the dealer. They will try to bump you. If you have that mentality upfront you can stay in control while allowing them to think that they are. How much better is this location in comparison to the old one?

[TTS]

If that 1 dealership can support you do it.... otherwise.. PASS!

There is no way in hell other dealers will send their business to a competitor (other dealership)..... So you will more than likely kiss your other dealer business goodbye.... and retail... Who has the perception they are getting a competitive deal @ a dealership ???

I would pass....

[TINTDESIGNZ]

Might be a good move...you're the only one who can decide. One thing for sure...get somewhere and stay.I've had 2 locations in 22 years.Almost all of my business is repeats or referrals.Good Luck!

[Guest thatsnappyguy]

when I was at the dealership, we offered tint to the general public. there was sign out front and all. I would offer to pay rent so they know they gonna be making money and u will be as well. make it good with all the salesmen at the other dealerships and have them send the tint jobs to u. they wont see u as a competitor as long as your helping them out. best part about this is u got the location, the business flow, and could only get better for u. just keep your guard up and put everything on paper.

[Guest Litespeeds]

Sounds like a great idea but how much will the rent be? You have to figure out your fixed costs for doing business in your current location vs. the new one. Never expect that you will generate more business by moving closer to a dealership. With car sales these days, they are not pre-loading window tint as an option for their customers.

Good Luck!

[Iron Duck Designs]

If that 1 dealership can support you do it.... otherwise.. PASS!

There is no way in hell other dealers will send their business to a competitor (other dealership)..... So you will more than likely kiss your other dealer business goodbye.... and retail... Who has the perception they are getting a competitive deal @ a dealership ???

I would pass....

Does anyone else think this? The dealerships we do business with really like us, I mean really. We are the only ones who will do their signage, mostly because other sign shops won't put up with dealers attitude or payment schedule...That is a good point though,TTS, I hadn't thought of that...the other dealerships are new cars sales, and where we will be renting is used, will that make a difference?????? The frontage on this place kicks ass....trying not to get too excited about it....

[Fiveofeen]

My main issue would be the fear of them seeing how well you are doing, waiting till your lease it up and booting you then setting up their own deal. Then they feast off what you have established at that location.

Used car guys are considered the vermin of the earth for a reason, they look out for #1 and no one else.

What happened to the other location you were looking at. I wouldn't go near a dealership, get your own location don't be reliant on someone else and their property. If someone gets jacked by that dealer and talks smack about them its going to carry over to your business, many folks will think its owned by the dealership.

If you need to cover your ass with a legal trail to make sure you arent going to get screwed its not a good proposition. You are walking into it from the beginning knowing potential issues could occur.