Car dealerships for sale

A franchised dealer has an agreement with the brand’s Danish importer, and that agreement is the most important thing you buy. Ask whether the importer must approve the new owner and what it requires in terms of showroom, workshop, training and sales targets. The importer may have plans for its dealer network that affect your business, so speak to it before making an offer.

A used car dealer depends less on one agreement but lives on buying, reconditioning and stock turnover. Here the owner’s ability to buy the right cars at the right price drives profit. Ask how cars are sourced and how long they stay in stock on average.

Cars in stock are often financed through a stocking or floor plan facility. Establish who owns the cars, what is owed and whether the financing can continue. Check whether the business uses the Danish margin scheme for used goods and that the records are in order. Danish vehicle registration and tax rules are complex, so a local adviser is worth having. A workshop with service customers provides steady income; review equipment, mechanics and any importer requirements. Also check which registrations and permits operations need, such as for trade plates, and whether they must be applied for again.

Sitavo’s indicative range for trading is 2.5–4.5 times EBITDA, cross-checked against 0.2–0.6 times revenue. Car dealers have high revenue and thin margins, so use the revenue cross-check with care. Stock is usually settled separately. A profitable workshop and a stable dealer agreement push the price up.

• Dealer agreement with the importer and requirements on a change of owner.
• Stock list with purchase price, age and financing per car.
• Margin scheme records and VAT returns.
• Workshop revenue, equipment and mechanics.
• Lease or property: location, term and assignment.

See the general advice on buying trading businesses. If you are after a garage rather than a dealership, see trade and construction businesses for sale.