Reason for Selling:
The vendor is looking to enjoy semi-retirement
Overview of the Business:
The profitable and well respected business has it’s routes in a pre-owned car dealership dating from 1946. Started by the vendors father, the business successfully traded in used cars from a high-profile location in an affluent area of South West London. After many years in charge of the business, and with a change in the used car marketplace, the vendor decided to expand the vehicle hire side of the business. After meeting with a number of respected and well known international car rental firms, the vendor signed an initial franchise agreement with a growing national chain in 1996.
The original agreement was to cover a number of post-codes in South West London, serving a wide radius in a affluent part of town. In 2002, he decided to take on an adjoining patch, which extended the coverage of the businesses reach across West London.
The Franchise agreement is very flexible, and allows the owner to operate in a very independent nature as a business owner, sourcing and managing his fleet and additional marketing and business operations. When needed he can call on the larger national network to supply vehicles with a lower – but profitable margin, and as part of the Franchise, enjoys regular high-profile advertising and a central company support structure. The business operates with a range of leased vehicles, all under 2 years in age. Previously the owner purchased vehicles outright, and sold back after a couple of years. If done right, this could add a great deal of profit to the bottom line, and can easily be re-started.
Property Features and Assets:
The vendor owns the freehold to the property, and is looking to sign a new lease with the purchaser of the business at an agreeable market value rent. The business rates are approximately £10,000 per annum. The business is located on prominent high-street corner location. There is approximately 2000 sq ft of forecourt space to the front of the building and ample off-street parking. At the front of the premises is the small reception office, of about 150 sq ft, with service counter, telephone, cash register, coffee machine and customer seating for 4.
At the rear of the premises is a large garage / workshop with fixtures and fittings for mechanical servicing of vehicles and hand car wash facilities. There is space for on-site storage, and staff facilities including toilets and refreshment preparation area.
Market Competition and Expansion:
There is national advertising conducted by the Franchisor, with the vendor allocated a budget for specific targeted advertising. Alongside this, the owner has conducted advertising directly in local press, and leafleted the surrounding geographic location regularly with a promotions company serving approximately 15,000 local residents.
Additional Details: