Car Dealers
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NEW AND USED AUTOMOTIVE INDUSTRY: AN INDUSTRY PROFILE sic # 5511
Ronald C. Rice, BBA University of Cincinnati College of Business Administration
Spring 1990
TABLE INDUSTRY AND BUSINESS ENVIRONMENT
CONTENTS
Trends Affecting the Industry.........................1 Current State of the Industry.........................3 The Legal Environment.................................4 Industry Problems.....................................4 Franchise Opportunities...............................6 Current Trends........................................6 New Technology........................................7 SMALL BUSINESS FACTORS Startup Information...................................8 Licensing.............................................9
http://www.sbaer.uca.edu/Publications/pub00033.txt
6/18/04
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Model of the Average Dealership.......................9 Financing.............................................11 Marketing.............................................12 Management............................................14 Business Plan.........................................14 CONCLUSION............................................16 REFERENCES............................................17 BIBLIOGRAPHY..........................................18 EXHIBITS 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. U.S. Car Sales For Major Manufacturers (1973 - 1983) Number of Dealerships VS. Principles(1979 - 1989) Breakdown of Total Sales Net Profit as a % of Sales Gross Profit as a % of Sales Now Car Sales - Hamilton County Ohio "Sweat Mountain" News Break Stats Small and Average Size Dealership Organizational Charts Large Size Organizational Chart Market Share Growth of Imports Average Price of New Vehicles Sold Average Number of New Vehicles Sold per Dealership Sample Break-even Chart Operating profits Licensing Checklist
INDUSTRY AND BUSINESS ENVIRONMENT Trends Affecting the Industry The largest group of car buyers are the
NEW AND USED AUTOMOTIVE INDUSTRY: AN INDUSTRY PROFILE sic # 5511
Ronald C. Rice, BBA University of Cincinnati College of Business Administration
Spring 1990
TABLE INDUSTRY AND BUSINESS ENVIRONMENT
CONTENTS
Trends Affecting the Industry.........................1 Current State of the Industry.........................3 The Legal Environment.................................4 Industry Problems.....................................4 Franchise Opportunities...............................6 Current Trends........................................6 New Technology........................................7 SMALL BUSINESS FACTORS Startup Information...................................8 Licensing.............................................9
http://www.sbaer.uca.edu/Publications/pub00033.txt
6/18/04
Page 2 of 13
Model of the Average Dealership.......................9 Financing.............................................11 Marketing.............................................12 Management............................................14 Business Plan.........................................14 CONCLUSION............................................16 REFERENCES............................................17 BIBLIOGRAPHY..........................................18 EXHIBITS 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. U.S. Car Sales For Major Manufacturers (1973 - 1983) Number of Dealerships VS. Principles(1979 - 1989) Breakdown of Total Sales Net Profit as a % of Sales Gross Profit as a % of Sales Now Car Sales - Hamilton County Ohio "Sweat Mountain" News Break Stats Small and Average Size Dealership Organizational Charts Large Size Organizational Chart Market Share Growth of Imports Average Price of New Vehicles Sold Average Number of New Vehicles Sold per Dealership Sample Break-even Chart Operating profits Licensing Checklist
INDUSTRY AND BUSINESS ENVIRONMENT Trends Affecting the Industry The largest group of car buyers are the
References: Chappell, Lindsey, (1989) "Sales Climate Chills Mall Fever" Automotive News, August 7, p. 1. Defrancesco, Brian (1990) "Bucks From the Future," Ward 's Auto Dealer, March, pp. 20-27. Ferron, J., and Jake Kelderman, Betting on the Franchise, 1984, NADA. Jackson, Charles, (1990) "Local Black Dealers Are Here to Survive," The Cincinnati Enquirer, November 27, section D p.1. Maynard, Roberta, (1990) "No Train, No Gain," Automotive Executive, April p. 25. NADA (1990) "Project 2000 Redux, part 1," Automotive Executive, March pp. 32-41. NADA (1990) "Project 2000 Redux, part 2," Automotive Executive, April, pp. 35-41. NADA Data Book, (1989) pp. 1, 3, 4, 7, 9, 11, 12. NADA (1981), Cash Management, p. 3 NADA, Job Descriptions Robert Morris Associates, (1989) Sorge, Marjorie, (1990) "Honda Will Be Hot, Economy Will Drag," Ward 's Auto Dealer, March, pp. 41-43. Spinella, Art (1988) "Sinkhole," Ward 's Auto Dealer, November, pp. 27-33. Timmons, Jeffery A., (1985) New Venture Creation, Irwin Homewood, ILL. 60430 BIBLIOGRAPHY Chappell, Lindsay, (1990) "Dealers Sing the Blues," Automotive News, February 5, p. 1. Stertz, Bradley A., (1989) "Car Dealers Face Shakeout as Sales Sag," Wall Street Journal, June 7, p. b1(w). Thomas, Charles M., (1990) "DEALERS: Fewer outlets, CSI, Computers, Tonkin," Automotive News, January 1, p. 11. http://www.sbaer.uca.edu/Publications/pub00033.txt 6/18/04 Page 13 of 13 Tonkin, Ron B., (1989) "Drastic Changes In Car Retailing," Automotive New: Autopower, November 29, p. 42. Towle, Lisa H., (1989) "Megadealers: New York Times, October 22, p. f 15. Does Size Mean Power?" The Towle, Lisa H., (1989) "As Profits Slide, a Struggle to Survive," The New York Times, October 22, p. f 15. Whiteside, David E., (1989) "Retailing In the 1990 's," Automotive News: Autopower, November 29, p. 58. http://www.sbaer.uca.edu/Publications/pub00033.txt 6/18/04