Business For Sale Listing 148714
Established, Profitable Online Used Car Dealership
Status as of Nov-20-2008 at 06:42 PM: Active
Business Summary
Old school used car sales requires a facility located in a high traffic area near a number of new and used car dealers. This means high overhead with an extremely low cash flow.
New school used car sales requires a storage facility in a commercially zoned area apart from competition. This means low overhead and comparatively high cash flow.
The difference is that old school uses a variety of advertising sources while new school relies on Internet marketing.
Customer's attitudes and buying habits are changing dramatically. Buying a car sight unseen trough an Internet based dealer has received wide acceptance since August 2006, when eBay Motors sold it's 2 millionth passenger vehicle. Today eBay Motors claims that a passenger vehicle is sold on their website every 50 seconds. eBay Motors has become the Internet's largest seller of all things automotive.
This business sells used cars through eBay Motors and has it's own website. The founders started their business in 2004 with a handful of luxury used cars; brands like BMW, Mercedes Benz, Lexus, Audi and Volvo make up the majority of sales.
Consumers do their research online through resources to establish wholesale, retail and private party price points on websites. They know what make, model, year, options and mileage is acceptable and are assured by resources that inspect and protect their purchase, provide extended warranties and can order comprehensive reports about that specific vehicle from sources like www.autcheck.com and experian automotive before they buy. In addition there are numerous financing options and extended third party warranty programs available to a used car buyer.
Yet the purchase of used cars on the Internet is just a small percentage of all used car sales. Therein lies the opportunity for significant growth of this business over the coming years.
Categories
Industry
Location
Financials
| Sales: |
Between $2.5 Million And $5 Million (3,300,000) |
| Profits: |
Between $100 Thousand and $500 Thousand (275,200) |
| Profit Type: |
Cash Flow |
| Fiscal Year: |
Projected 2008 |
| Asking Price: |
Between $500 Thousand and $1 Million (550,000) |
