Own an automotive dealership

Is owning a dealership profitable?

Owning an automotive dealership, especially within a network like Fleet Services International (FSI), can be significantly profitable. The key lies in the unique business model we offer, which focuses on providing essential fleet maintenance services. Without the burden of franchise fees, our dealers enjoy the full fruits of their labor. Profits, however, are not just about eliminating fees; they stem from leveraging our national brand affiliations and purchasing networks which drastically reduce operational costs while maximizing service offerings. The profitability of an automotive dealership under FSI is augmented by our recession-resistant model, catering to essential services that ensure steady demand regardless of economic fluctuations.

How do car dealership owners make so much money?

The not-so-secret sauce to a dealership's financial success lies in diversification and excellent customer service. Dealership owners, particularly those in the FSI network, have a broad spectrum of revenue streams apart from selling vehicles - these include maintenance services, parts sales, and even financing options for customers. Additionally, the relationships we build with industry giants like Autozone, NAPA, and Advanced Auto, afford us significant discounts that improve profit margins on parts and services. But let's not overlook the importance of customer service. By ensuring a high level of customer satisfaction, we see repeat business and referrals which are invaluable to our bottom line.

How much does it cost to start a car company?

Starting a car company, or more specifically an automotive dealership, involves various initial costs. The range can be wide due to factors like location, size, and whether you are starting from scratch or buying into an established brand. However, with FSI, we streamline this process with options like 100% financing for qualified individuals and no franchise fees. While exact figures can vary significantly, initial investment would cover inventory, facility, equipment, and startup marketing. By partnering with FSI, many of these costs are mitigated through strategic supplier relationships and financing options, making it a more accessible endeavor than many realize.

What is the difference between a car dealership and a franchise?

A car dealership operates under the umbrella of a specific automotive brand, selling new and used cars of that brand, and offering services and parts. A franchise, on the other hand, is a broader term that can apply to any business model where the franchisee (the owner) pays fees to a franchisor to use the brand, business model, and support systems. The main difference in our context is the absence of franchise fees with FSI, allowing dealers to retain more profit and operate more independently while still benefiting from brand affiliation, support, and an established business model. This unique approach offers a blend of dealership benefits without the typical constraints and costs associated with a franchise model.

What are the benefits of FSI membership?

Joining the FSI network offers manifold benefits, chief among them being access to a proven, recession-resistant business model focused on essential services. Our dealers enjoy exclusive territory rights, minimizing direct competition and maximizing market presence. The lack of franchise fees and availability of SBA-approved financing options further ease the financial burden of startup and expansion. Moreover, our ongoing training, support from industry experts, and access to national purchasing networks provide operational efficiencies that standalone businesses rarely achieve. It's more than just a membership; it's a partnership aimed at mutual success in the fleet maintenance and repair industry.

Understanding Your Market

Before diving into dealership ownership, it's crucial to have a deep understanding of the automotive market. This involves analyzing current trends, understanding customer needs, and identifying potential areas of competition. In doing so, you can shape your dealership's offerings to meet market demands effectively. For example, as we've seen at FSI, there's a growing demand for fleet maintenance services - a niche that many traditional dealerships overlook. By focusing on this essential service, FSI dealers position themselves in a sector with less competition and high demand, allowing for greater market penetration and profitability.

Securing Financing

Financing is a crucial step towards dealership ownership. At FSI, we understand this and have partnerships with SBA-approved lenders to provide a variety of financing options tailored to our dealers' needs. This streamlined process helps aspiring entrepreneurs overcome one of the biggest hurdles to business ownership. Furthermore, our 100% financing option for those who qualify is designed to make the dream of business ownership a reality without the daunting upfront costs. It's about making strategic financial decisions that align with your long-term business goals, and at FSI, we're here to guide you every step of the way.