Dodgy Economy Pushing Down Auto Sales

Declining consumer confidence, driven by high unemployment and job concerns, is contributing to a decline in auto sales this year, analysts say.

Consensus predictions for the year had U.S. new vehicle sales settling in at 11.9 million units, well off historic levels but still ahead of 2009 sales. Now, analysts are looking at a revision to 11.2 million vehicles. Some are even calling for an 11 million-unit year.

That 700,000-900,000 unit swing will have a sizeable impact on the OE tire business for 2010, and would be the third straight year of significant sales declines. Looking forward, those declines will add up to declines in replacement tire sales opportunities.

The continuing decline in vehicle sales may also mean more car dealerships closures. “It is a difficult time to do business. I think we will see more dealership failures before this is over,” said Kelly Blue Book analyst Jack Nerad. “Some have been just hanging on and just won’t survive to better times.”

“The problem is that people are still not sure about their jobs, their retirement accounts or the value of their homes,” said auto researcher Jim Hossack.

Courtesy of TIRE REVIEW.

When Your Shop Is Worth Much More Than You Thought

Although every sale of a shop in which I am involved has its own unique set of circumstances, which makes my job both very interesting and very challenging, Cowden Automotive stands out as particularly memorable because I was able to demonstrate to the long-time owner, Paul Cowden, that his business was worth about three times what he had initially thought.

Case Study: Owner of San Francisco-based Import Service Shop Delighted to Discover Just How Valuable His Business is to Qualified Buyers
I sometimes share case studies of the clients I have been able to assist in my role as an aftermarket business broker and provider of intermediary and advisory services. I do that when I think the story will provide a reader in similar circumstances with new insights or helpful information.
In the case of Cowden Automotive, Inc., I acted in a consulting capacity assisting the owner and his broker in valuing the business, creating a marketing plan, finding a qualified buyer, and arranging financing for the sale.
Although every sale of a shop in which I am involved has its own unique set of circumstances, which makes my job both very interesting and very challenging, Cowden Automotive stands out as particularly memorable because I was able to demonstrate to the long-time owner, Paul Cowden, that his business was worth about three times what he had initially thought.
Needless to say, delivering that kind of good news to a shop owner is a rewarding experience. Discovering that the sale of his business would result in his retirement nest-egg being substantially larger than he had ever thought was a fitting tribute to someone who had spent his entire working career as a busy automotive service shop owner.

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