In an environment where profit as a percentage of sales is so slim, where capital requirements are so huge and where litigious challenges are so great, dealers need to take advantage of every possible opportunity to create wealth for themselves without excessive risk or threat of legal peril.
Historically, dealers banked on the Blue Sky of their business and the underlying real estate as keys to their long-term wealth development. However, the ever-changing franchise landscape and complexity of the business model have made these wealth creation cornerstones much less reliable and insufficient.
In addition to Blue Sky and Real Estate, incremental approaches to wealth development are vital. That is the development of non-dealership assets, such as reinsurance, captive and self-insurance, and dealer-owned finance companies. Even though dealers have been participating in underwriting profits of the products utilizing this opportunity and, frankly, leaving money on the table. ADG’s experience will help you analyze programs and make choices that are best for you and your customers.
To drive a really extraordinary return on investment typically takes gains on efficiencies within an existing business model that previously were not available. We accomplish just that through the utilization of a turnkey dealer-owned finance source that specializes in lower tier credit. As a dealer, you will experience new efficiencies and ultimately an extraordinary ROI. This will allow you to maximize your existing business while developing an entirely new asset outside of the dealership.
We even have ways to help you access capital to support such a venture that you may have never known existed. Even though dealers have been participating in the underwriting profits of the products they sell for more than 30 years, we’ve found that most haven’t given a tremendous amount of effort to maximizing the available programs. At first glance these programs may seem complex with different structures, insurance carriers and tax implications. ADG can help you navigate these programs and make sure the choices you make are optimal for your dealership and business strategy.