New to the game! Independent Dealers HELP Please!

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#11
TallCool1, please tell me how you financed the purchase of the dealer with the $225,000 floor plan line? Did the dealer just add the price to his inventory list to cover the price of the business? The dealership / rental business I'm buying has no inventor! They sold it already. Do you have check writing capabilities, or does every dollar have to be secured by a title etc? Any assistance on ideas to take this business down is much appreciated thanks! Mike
 
#12
EmailMikeHere1 said:
TallCool1, please tell me how you financed the purchase of the dealer with the $225,000 floor plan line? Did the dealer just add the price to his inventory list to cover the price of the business? The dealership / rental business I'm buying has no inventor! They sold it already. Do you have check writing capabilities, or does every dollar have to be secured by a title etc? Any assistance on ideas to take this business down is much appreciated thanks! Mike
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I am confused by this, I didn't purchase a dealership with a $225K floor plan line?

I have a line of credit that I utilize as I would a floor plan. I advance and pay down as I buy and sell vehicles on a VEHICLE BY VEHICLE basis. This way I pay interest on the vehicles I have floored only, rather than paying interest on the whole line.

Why are you paying money for a used car dealership that has no inventory? What are you buying? Shop Equipment? Parts? Can't be a building (although I probably shouldn't say that).
 
#13
jkathary171 said:
Just an update! The local banks want at a minimum of 6 months bookkeeping, bank statements, ect; before they'd be willing to work with me on a floor plan. However, Nextgear contacted me Friday, and notified me that I was approved for $225,000.00 Floor Plan "Which is just enough to cover the current inventory and take over ownership of the lot" I would have to say, that was the easiest company to work with "so far" and FAST. I had an approval within 24 hours of submitting the application. The current owner and I spent the day transferring everything into my name "Utilities, carsforsale.com, Cargurus, Lot Insurance, Frazer, and a couple other programs. So, it looks as if this is happening! The owner also offered me free rent until Jan. 1st "Just so I have time to create some revenue". I had mentioned to him my interest in buying the lot from him in a couple of years, once we had enough proof for the banks to approve us. He then offered to setup a Land Contract, in a few months, instead of dealing with the banks. Now the only thing I am waiting on is the lawyer to get all the paperwork wrote up so I can sign my life away! LOL. Currently the date set for me to take over is Oct 15th! Now, just to sell some vehicles! LOL
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Hey, I was wondering how you got this done exactly, so I can use it to buy a dealership and car rental place? So, did the dealer just add the price of his business into all the vehicles? Do they just give you check writing abilities to buy cars, or the dealer and both? The seller of what I want to buy sold all his inventory already, so I'm buying his business only without any cars. I will have to use my own, or buy more to sell and rent. I also need to pay him off and was hoping to use the line from Next gear. Is it possible like you say? Thanks so much in advance!
 
#14
Tallcool1 said:
I am confused by this, I didn't purchase a dealership with a $225K floor plan line?

I have a line of credit that I utilize as I would a floor plan. I advance and pay down as I buy and sell vehicles on a VEHICLE BY VEHICLE basis. This way I pay interest on the vehicles I have floored only, rather than paying interest on the whole line.

Why are you paying money for a used car dealership that has no inventory? What are you buying? Shop Equipment? Parts? Can't be a building (although I probably shouldn't say that).
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Sorry that message was for jkathary171
 
#15
jkathary171 said:
Just an update! The local banks want at a minimum of 6 months bookkeeping, bank statements, ect; before they'd be willing to work with me on a floor plan. However, Nextgear contacted me Friday, and notified me that I was approved for $225,000.00 Floor Plan "Which is just enough to cover the current inventory and take over ownership of the lot" I would have to say, that was the easiest company to work with "so far" and FAST. I had an approval within 24 hours of submitting the application. The current owner and I spent the day transferring everything into my name "Utilities, carsforsale.com, Cargurus, Lot Insurance, Frazer, and a couple other programs. So, it looks as if this is happening! The owner also offered me free rent until Jan. 1st "Just so I have time to create some revenue". I had mentioned to him my interest in buying the lot from him in a couple of years, once we had enough proof for the banks to approve us. He then offered to setup a Land Contract, in a few months, instead of dealing with the banks. Now the only thing I am waiting on is the lawyer to get all the paperwork wrote up so I can sign my life away! LOL. Currently the date set for me to take over is Oct 15th! Now, just to sell some vehicles! LOL
Click to expand...
Hey what was your credit score upon approval?
 
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