Opening A Porsche dealership?
 

Anyone know what it takes to open a Porsche dealership? Any info is much appreciated.

Alot of capitol I would assume...
Seems like new Porsches dealers dont open around here, they just change owners or move.
So you would need an open territory or to purchase a dealer.

Does Porsche makes contracts so only one person(investor) within 100 miles radius(example) can have a Porsche dealer?

They limit dealers geographically for sure, in this heavily populated area it can be a little as 8-10 miles.

A friend's dad opened a Chevy dealership years ago. He needed 1.5 million bucks to do it. I would imagine a new Porsche dealership would require at least as much capitol plus a hefty debt to build the building, buy the land, outfit the service bays, etc.

I can't think of any reason why any sane person would want to own a car dealership unless they grew up in it and didn't know any better.

Capital and experience. And lots of capital, did I mention that?

oh, and being German helps too!


:dance:

Every German mechanic I met has been named "Hans".

Let's all chip in :)

This way we can get our Boxsters, parts and service at cost.


bob

Hi,

I seriously doubt that there are any Franchise opportunities at all in the US. The existing Dealers will all have geographically based non-compete clauses in their Dealer Franchises.

For Porsche and a new Dealer to open one, the affected existing Dealers would have to relinquish part of their acquired rights to that geographical area, after being duly compensated of course. This could turn out to be the biggest expense of the whole package.

Given the high cost of entry and the limited sales, it would probably not make sense as a stand-alone dealership, rather an existing Dealer of other Marques may be able to make it work, but only through consolidating and ammortizing costs between the various other Dealerships they owned.

As a Stand-alone, I expect you couldn't produce a credible Business Plan which allowed you to turn the corner in less than a decade, maybe more, anything less would be so optimistic as to be labeled Fantasy by any Bank or Lending Institution...

Happy Motoring!... Jim'99

There are NO Porsche dealerships in Montana, Wyoming, and South Dakota.
Looks like a major opportunity to lock up three states. All those miners, cowboys, and potato farmers are doubtless salivating at the chance to buy a Cayenne Turbo. Rag top sales might be thin upon the ground, however.

you have to see the front caliper on that Cayenne TurboS. :eek:

How about this would Porsche cooperate in setting up a service center where ONLY certified Pre-Owned Porsches would be sold?

Hi,

I suspect you're barking up the same tree here, but of course, no one here can speak for Porsche AG or Porsche NA...

Happy Motoring!... Jim'99

FP is too busy trying to sink the CEO of VW to worry about the Prairie States.

I just read a short bio of the guy. He makes the term Egomanic seem too mild.

It IS tough being German sometimes.

:D

For a McDonalds which is cheaper than a Car Dealership you must have liquid net worth of 5 million dollars to even quilify to buy one. You pay $900,000 for the store and must also agree to develop two new stores in your area (dependant on what they say) in the next two years.

I'll bet for a Car dealership you would need at much liquid capital if not more because of the cost of all the inventory. Yes it's financed but you need to have minimum 1 years operating expenses in cash reserves. The Corporation doesn't want to be taking over franchises because they can't afford to keep it running if they don't sell X number of cars.

Basically you gotta be TOTALLY loaded to open something like that. I do Franchise lending for Canada's largest bank. The terms are set out by the Franchise corporation and all the people are pre-screened before they can even apply to us for the financing. If the corporation says they are worthy, we do some checking but pretty well run it through because they are backed either way with a guarantee. The different ratios and criteria one must meet is crazy. Basically need 4X-6X the cost of the operation in cash to even open the doors (thats after paying to get the place started).

Call them
 

I would just call, write or email them. I got this contact info from the http://press.porsche.com website (shhhh carrera/carrera):

Porsche Cars North America, Inc.
980 Hammond Drive, Suite 1000
Atlanta, Georgia, 30328

Public Relations
Martin Peters (770) 290-3667