Property Descriptions

Very Profitable Motor Vehicle Business specialising in sub-prime finance based Used Car Sales Location: North East England Leasehold Asking price: £275,000 for the goodwill (plus cost of stock to be negotiated) Asking price includes: 2024 Turnover £7.2M. Gross Profits of £979,000 Adjusted Net Profit of c£173,000 pre-drawings Business is currently selling 80 Cars per month! Multiple revenue streams Impressive growth pattern High profile site including workshop Large well maintained forecourt Superb reputation (30years trading) Growing & loyal client base All tools and equipment Superb Website Listings Goodwill Business Profile: This well established and highly reputable vehicle business has been established some 30 years, and during that time has built up an enviable reputation in the North East region. The business provides exceptional value for money and a reliable trustworthy range of vehicle offerings, be it car sales, car hire, van sales/hire or minibus rental. The business operates from one high profile site. The majority of current revenues are generated via used car sales (circa 90 %). The business has carved out a niche in the sub-prime market by specialising in offering “Guaranteed Car Finance” and enjoys high levels of referrals and repeat business due to this. In addition to the car sales, the business operation offers complementary services including car hire, van and minibus hire as well as motorhome hire, mainly on a B2B/commercial basis. Whilst this only accounts for some 10% of current revenues (mainly due to the fact that the used car sales business is expanding at a rapid rate) it is still a valuable part of the business. Hire customers include schools, colleges and universities as well as public sector bodies, many of whom have contract hire agreements in place for ongoing use, (approx. 30 cars and 15 mini-buses in the hire fleet and expanding!). The company has enjoyed very good growth over recent years and the business has quickly become one of the largest independent used car sales and vehicle hire companies in the North East. Even though the business specialises in the economy/sub-prime sector of the used vehicle market, it provides a full safety check on all cars to give customer peace of mind. It can also provide very comprehensive warranty packages with all vehicles and tailor them to meet customer specific requirements, if need be. It is this level of customer care that really does separate the business from other operators who work in this sector of the motor trade. The business trades from a prominent location with superb facilities, including own workshop and highly visible forecourt frontage. The site is a real asset of this business. Many existing customers have been loyal to the business since the beginning and recommend friends and family. This has been due in no small part to the business’s competitive prices, finance, quality products, service and attention to detail. The site can accommodate some 70-80 cars and commercial vehicles on the forecourt, which ensures there is always a good choice of vehicles for customers to view. There is good access and the forecourt is viewer friendly with no pushy sales techniques. The site has good signage and is highly visible from the road. The vendor has invested in the business premises over recent years and it carries out its own workshop servicing. The business is being sold on a leasehold basis. We are advised the freehold may be available in the future. Plant and Equipment: The business has its own workshop on site with 4 post ramp which enables it to carry out its own servicing etc. The office is fully computerised with all the relevant pc equipment, and its own website. All plant and equipment is included within the sales price. Customer Service: A vital component to this business’s success to date has been the customer service, which is focused to a great extent on pre/after sales, the place where the reputation of the business can be made or lost. This company ethos means the business enjoys good levels of referrals. This commitment to customer services is also evident in the fact that all vehicles are HPI clear, come with 1 year MOT offering, 6 months road tax, 3 months warranty and are fully serviced before a sale. This level of customer service is more akin to new car purchases and is what really makes this company stand out from the crowd. With regards to hire customers, the business offers a free collection and delivery service and works very hard at understanding its commercial customers’ needs which has resulted in high levels of business retention. Key Strengths: • Massive growth- business is currently selling 80 cars a month! • High Profile Location • Profitability- the business has no need to discount because of the unique finance solutions it offers • Guaranteed finance options (own finance and third party) • Multiple revenue streams/turnkey solution • Reputation throughout North East • Market Presence-economy/sub-prime sector specialist • Customer base • Infrastructure (fully equipped workshop and offices) • Levels of customer service • Brand and Website Growth and Expansion The business has enjoyed very impressive levels of business to date and this trend is expected to continue, despite the tough economic times. The site has spare capacity and the customer base (both commercial and retail) is growing due to referrals, the brand, website, new advertising campaigns and word of mouth recommendations. At time of going to market the business is enjoying rapid growth in the sub-prime financed used car sales market. It is currently selling some 80 cars a month and achieving gross profit margins. Key Opportunities: This is an outstanding opportunity to build on the existing business levels and customer base of this company. With a strong demand for this business’s services the current levels of growth are expected to continue, particularly in the sub-prime car sales market With regards hire, the business is constantly receiving enquiries from new commercial customers and this could easily be scaled up to become a larger part of the business should a new owner so wish. Van hire is still very much in its infancy and represents a significant opportunity to a new owner. The business also has its own workshop that is currently under-utilised. Advertising and Marketing: The business advertises in the local/regional press, which is highly effective. It also carries out significant radio advertising and more recently TV adverts, both of which are proving to be highly successful. The highly informative website showcases current car stock and hire options, as well as finance details. The business benefits from being situated in a high profile position giving strong brand awareness. Employees: The vendor works in the business 4 days a week. The business also employs a team of hardworking staff carrying out sales, office, finance, workshop (3 mechanics) and valeting duties. Premises: The business operates from ideal premises comprising garage, forecourt offices and sales area. The site is available on a leasehold basis. Rent will be circa £2,800/per month. There may be an opportunity to purchase the freehold in the future Business Hours: 7 days a week. Financial Information: The business is being offered for sale on a going concern basis: all financial discussions will take place directly between the vendor and all interested parties under the auspices of Turner Butler. The business has enjoyed very good performance to date and has all the foundations in place for future success. Having grown steadily over the last 4 years the business is generating impressive profits. This trend is expected to continue due to its high levels of service and referrals: 2024 Sales c£7.2M Gross Profits c£979,000 Adjusted Net Profit c£173,000 (Before director drawings) Current stock includes hire vehicle fleet. Reason for Sale: Genuine retirement sale. Support and Training: The vendor will provide full training and support to ensure a seamless transition of ownership and continued trading. This should be a relatively simple process. Asking Price: The Asking Price of £275,000 for the goodwill is for 100% of the issued capital of the company. The cost of Net Assets/Stock to be negotiated.(calculated on a zero cash-zero debt basis).