Hello all,
I'm currently the General Manager of a pre-owned vehicle sales and service center. The business has a great reputation in the community, and has done well for 35 years. The current owners are ready to retire and enjoy a life of less responsibilities. They have deemed me fit to take control, and are helping me out by carrying the note, with a good down payment of course. We are still working on the nuts and bolts of the deal, and it has me thinking of all the avenues I could pursue in the future. Which leads to my question, should I continue to sell cars, or just focus on service? I know I'm not giving much information, but I'm looking to hear from other owners who may have experience on both ends, on some pros and cons. I know the 2 segments are symbiotic, as sales gives us future service work, and service has the option of offering vehicles for sale when a service customers vehicle is deemed not worth repairing.
The current numbers are skewed, as service gives a discounted rate to sales in the manner of 50 dollars per hour of labor, as opposed to the 134.77, and also parts are at cost. I am a numbers guy, and would like to make a decision on what would be most profitable, and I will have a better idea as we work over the reports.
I'm just looking for opinions from knowledgeable folks. We don't have a master technician at the moment, so we struggle on diagnostics sometimes, and I would have to resolve that should I decide to remove sales from the equation.
Sales end is currently handled solely by one owner, other than myself talking to customers on the lot. We have a license now for 30 cars.
Fenced in yard behind building capable of storing 40+ cars, with a front lot that displays the 30 vehicles for sale.
Great customer base, minimal advertising in the 35 years of business. ARO is 426.20 currently, and we average around 2000 RO's annually in the last 4-5 years.
I know I'm not providing enough information, but I can update when more becomes available.
Thanks in advance!