Auto Auction And Sales Business Real Estate Included For Sale

Business description

This highly successful auto auction and used car lot services wholesale and retail customers among a several state area. The buyer of this business will immediately inherit $1,000,000 in accounts receivable from retail auto notes currently being paid by customers who have recently purchased vehicles from the lot. According to past collection rates, approximately 85% of the $1,000,000 can expect to be collected. 60% of the total revenue of this business is from the weekly auto auction, 40% is from car notes paid weekly to the dealership in used car sales. $59,400 in revenue is the fair market value of the on-site rental property, included in the purchase price and already added to the total cash flow of $236,537, this is generated by four houses, a large billboard on the property leased monthly, and a commercial building - all located on the 7.3 acre commercial lot on the highest traffic highway in the area. This is a strong cash flow business with multiple customers making weekly cash payments. The auction is standing room only each week. Dozens of cars are sold, complete with concession sales, two lanes with auctioneers, and a well trained staff of eleven employees to manage all aspects of the business. The auction produces a flat fee for each car from the buyer as well as the seller. Additionally, the auction owner occasionally buys cars from his own auction to put on his retail car lot. All systems and staff are in place, making this business a turn key opportunity for a new owner. The asking price is justified by the real estate value of 1.2 million, the accounts receivable of 1 million, and the ongoing documented cash flow of $236,00

Property information

Real Estate:

Real Property Included

Location:

The sale includes 7.3 acres on prime, commercial property with a 7500 sq. ft main building, a 6500 sq. ft. rental facility in construction, four houses onsite, three that are currently rented, a fourth that could be rented that is now being used as the owner's residence, and a large billboard rented out monthly, near the busy highway.

Other information

Expansion potential:

The current owner is more than comfortable with the income the business produces, but suggests several ways a new owner could greatly increase revenue: A Saturday auction for the public offering used cars, campers, trailers, heavy equipment, etc.; buying more cars for retail, the large facility could stock twice as much inventory if desired; use the facilities and staff in place to offer car repair services or a body shop; expand the business to include a wrecker service; and start a car reposession business.

Competition / Market:

very little in the area

Support & training:

owner will train

Reasons for selling:

retirement

Owner financing:

Owner financing is available. Please contact the seller for more information.

Furniture / Fixtures value:

$56,000 (included in the asking price)

Inventory / Stock value:

$177,095 (included in the asking price)