Anyone looked at the dealership invitation updated on Honda Atlas website. Honda Atlas Cars Pakistan Limited - Promos Site
What do you guys think, is it a good investment opportunity?
Is it easy to run a dealership, how much capital would be required?
How can they expand when they are already struggling to meet existing demand with 4-6 month waiting time for Civic X. Or they might just be preparing a network for the next generation Honda City launch...
it gonna be an expensive venture..
Thank you very much for your detailed insight into the matter.
the ROI is 10 years,
though only good for those that got some spare land lying just around some good location...
commissions r usually set at 5%..
security deposit to AHL would be around 50m
u gotta buy own tools, workshop, spares, quality workforce..
yes, i think land and construction cost would be major requirement.
next will be tools, mechanics etc. Service is the main revenue source for dealerships. Margins on car sales are usually low... no wonder they maximise on premiums whenever they get a chance.
10 years ROI 50 million investment no equipment no mechanics Over head of construction and only at 5% seems not a good business.
It is a long term investment. Dealerships make more money from the service business and commission on selling cars is just small part of it.
But yes, there are probably better opportunities out there.
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lets assume value of 5%... since RWP dealer claims he sales 300+civcs a month
each civic price is 2.5m
commission per car Rs 125,000
commission per month = 125,000 x 300 = 37,500,000
thats gross,.. now reduce the tax n overheads...
Value is 1 or 2% not more then that
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I feel only if someone from Atlas 'cooperates' with you, then there is chance of successful application.