Chris CollinsHelping Struggling Dealerships Build Profitable, High-Performing Service Departments | Automotive Coaching Expert | CEO

Are Auto Dealerships Going to CRASH?

19 Sept 2024 · 1 min

Watch on YouTube

0:30

Chris Collins (speaker) discusses Canadian auto dealerships that are losing money and the limited options to turn them around. He notes some buyers (well-capitalized groups or risk-taking general managers) may pay above intrinsic value hoping to rehab a loss-making dealership, but success is mixed—about 50/50 chance of turning around within two years—and manufacturers often repossess underperforming franchises.

Chapters

Think about that Canadian company, their dealerships are losing money. They're going to try to or even Asbury the dealerships that are losing money, they're going to try to get people to pay over what they're worth in the hopes that they can turn them around. But it's a unique dealer that would be capitalized enough to go do that, or it's a guy who's a general manager and he's taken a swing. But usually those. It's 50, 50 where they're that dealerships around in two years. A lot of those dealerships, the manufacturer pulls them back.