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We know, from working for and with Manufacturers that there are dealers who appear on the monthly risk list but the full picture as to their current situation is not always available.  This is neither a comfort to yourselves or your Finance Companies.  Your Business Management teams rarely have the time to investigate the situation fully and you sometimes end up relying on what the owners are advising you. 

Our experience tells us that the financial and operational state of the business is always considerably worse than either you envisaged or even, on occasions, what the owners believed.  We all know that composites and management accounts can be made to give one picture when reality is something completely different.

We also know, from the work we do, that the emphasis on investment in your franchise, marketing, sales, retention of good staff and strategic  planning go out of the window when there is a profit or cash crisis.  This does nothing for the reputation of the dealer, the product or your franchise.

Consider the following:

  • Do they consistently fail to hit new vehicle targets?
  • Do they have a low service absorption rate?
  • Are they always up against their bank and used car funding limits?
  • Is their used car turn low and is there deterioration in the age stock profile?
  • Are they always late with composite and management accounts submissions?
  • Are their profit results below composite average and deteriorating?
  • Are the used car stock audits hard work with many cars needing researching as to their current location?
  • Is there a lack of communication with the dealer?
  • Are they experiencing high staff and management turnover?

In a few days we could give you the answers that you need in order to make an informed judgement on the future of this dealer.


Every franchise has a group of dealers who do not make the grade.  The business is often either run poorly or there is a lack of commitment to your franchise.  Alternatively they may be treading water until they find another franchise to replace yours, maybe they cannot see how to make enough profit from your franchise but do not want to admit it or maybe there is insufficient funding available to take advantage of the opportunities your franchise presents.

The fact is that unless you have the time to spend working in that business at every level you may never know the answers to these questions until it is too late.

Let us assess your poorest performers and recommend a suitable course of action.  It may be as diverse as providing new investement to drive the business on or even suggesting necessary consolidation. 


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