Tuesday, April 22, 2014

Market For Auto Dealerships Heat Up

Average Dealership Pre-Tax Profits (source:NADA)
The pace of auto dealership buy-sell transactions continued accelerating at double-digit rates in 2013, with public retailers committing more than $1 billion to acquisitions for the first time since 2006.

The value of public dealerships’ acquisitions climbed 16.5 percent from 2012 levels while the number of private transactions rose 14 percent, according to The Blue Sky Report from Haig Partners LLC.

The buy-sell market will remain robust, according to Haig, for several reasons:
  • Private buyers are very active and interested in both single-point stores and larger groups.
  • With one exception, every public retailer has publicly expressed a desire to grow through meaningful acquisitions.
  • Many dealership groups have the capacity to make commitments of $100 million or more, with several capable of $500 million deals.
  • The range of attractive brands is broad: the 10 largest dealer groups acquired 16 different franchises in 2013.
Haig Partners is raising the multiples for Jaguar/Land Rover and Ford, and lowering those for BMW, Hyundai and Volkswagen.

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As always - We want your questions, so please feel free to ask us anything because the team at CARS really cares about your success and we're committed to you by not only getting results, but to make learning fun and exciting.  You can email us at repocarsinmichigan@gmail.com

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Monday, April 21, 2014

Consumer Spending Index Remains Steady

The Deloitte Consumer Spending Index dropped half a point in March, but continues to indicate positive conditions for consumers.

The Index tracks consumer cash flow as an indicator of future consumer spending.

The Index, which comprises four components – tax burden, initial unemployment claims, real wages and real home prices – decreased to 3.51 this month from 4.03 last month.

The tax rate is holding steady for the fourth straight month at 11.8 percent.

Initial unemployment claims declined 4.1 percent from the same period last year, falling to 337,000. However, they rose 1 percent from the prior months' claim rate of 334,000.

Real hourly wages continue to show a gradual increase, rising 1 percent from this time last year to $8.86.

New home prices climbed slightly from the prior month to $111,000, however over the past 12 months they have risen only 0.8 percent – down from a 5.5 percent increase in the 12 months to January.

Did you find this post useful?  Please post a link on your blog or website and SHARE it on Facebook so others can find it as well.

As always - We want your questions, so please feel free to ask us anything because the team at CARS really cares about your success and we're committed to you by not only getting results, but to make learning fun and exciting.  You can email us at repocarsinmichigan@gmail.com

"Make Money & Have Fun" - Jason Pries (follow on Twitter)

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