by kyle959 » Mon Apr 02, 2012 5:41 pm
Evan,
I am currently looking for between $250k-$500k which 90% off those funds will be used to acquire the additional inventory I need for resale. The remaining 10% will be used to cover the first year lease on the new warehouse, which will house the inventory. I plan on having between 20-30 cars depending on the size of the warehouse, and the amount of cash I have to purchase the inventory.
I have changed my business model to where I am carrying more average priced luxury cars Instead of the 80-100K variety that I had in the past. My previous partner insisted that we carry the higher priced cars instead of listening to me and adapting to new market conditions. I can buy 25-40K cars and turn them much faster, and for as much money, if not more than I can the higher priced luxury cars that sit around and cost interest waiting to sell. My average wholesale profit is $ 1500-1800 and my retail profit is over $3000.00.
I have tried over and over again to get Bank financing, which I was finally able to do in 2007 but when the economy tanked in 2008, the Banks closed my credit lines and that was the end of my Bank financing. I did here of an SBA 7A program recently that was directed toward Auto Dealers and Dealer Floor plans, but I have been unable to find any Banks that are participating in the program, as a matter of fact, very few Bank have even heard of the program.
I thank you for your interest in my Business and if you have any additional questions, please feel free to contact me.
Sincerely,
Kyle Lowe
H&L Motorcars
