BigVIPness

I've always wondered how much it would cost to open a car dealership. Our family (my grandpa and his brother) owned a dealership in the 50's (selling used cars in minneapolis) till around the 80's (grandpas brother owned southtown toyota and he managed it) i've tried to talk to my grandpa about it but he'd rather talk about the war then working there

I also was wondering if a exotic dealership would really cost that much more then a korean car dealership. Cause if you think about 150 kia's @ $20,000 average per car is 3 million, where as 15 exotic cars @ $200,000 average per car is 3 million as well.

Also does anyone know how much liquid assets you'd have to have to do something like this?

I've always wondered how much money does it really take to do something like that. So if anyone knows... fill me in!

encore888

I remember reading somewhere that in the 1990's, when Lexus started out the dealership expenditure, starting cost was fairly high for the time--minimum $10 million or something to build it, get the first inventory going, etc.

Now Lexus dealerships have the highest average profits of any major car brand in the US, and the cost of starting up is higher. Here in Newport Beach, CA, they are building the most expensive dealership in the US, something in excess of $50 million!

This is what I recall reading (figures may be different).

bighitbike

I would say over 10 million now adays for sure..But then again I would not know...

GSsnarl

I think it's around $14 million in the US (without the cars). In Japan however, dealerships are costing around $27million, TWENTY SLEVEN, they spent $4000 on a chair, not a couch, a CHAIR!

Anyway, when people ask me what I would do if I had over $10 million? I always say; I'd open a Lexus dealership and provide the best customer service.
I even have plans/drawings on what the dealership would look like. Every body in the workplace would call me Mr. LEXUS. (some already do)

Leets

From what I've heard those prices seem about right for opening a new-car dealership.

I'm curious, though, on what a used car dealership would cost. If you're running an "exotics" dealership then it essentially is just a used car dealership, right?

BigVIPness

Thats what i'm thinking, couldn't it be like $1,000,000 for the land and $600k-$1.2m for a new, small, building and lot then a couple million in inventory.

I dunno its all guesses I was hoping someone on CL had a better idea cause i'm

TheRupp

Anyone been to Woodfield Lexus in Schaumburg, IL? That's easily upwards of $20m.

spwolf

well, you dont really pay in cash for anything... sure you need to put some initial investment, but then you get an loan and financing for everything else. Nobody spends that amount of cash.

spwolf

Here you go:

http://www.memphisdailynews.com/Edit...=6%2F23%2F2006

"Wolfchase Toyota Financed For $12.3 Million
CAR UNI TN GER LLC has financed the 60,016-square-foot Wolfchase Toyota dealership at 2201 N. Germantown Parkway through Lehman Commercial Paper Inc. for $12.3 million."

J.P.

Our avg commercial build is $200sqft. It could be 150 and could easily be 350........

A SMALL place, with a front office and small service area is going to run you anywhere from 750k-1.25mm not including other items such as lifts for example..........

Land? Wide open on price.