Used Car Dealership Financial Model

Lots of guys and even gals are interesting in starting a business to sell used cars. It is a dream of many, but before you go wild, it is really important to hammer down the financial projections. Planning for various sales goals, startup costs, and being prepared is going to give you the best chance to succeed in the long run.




Pricing
*Upon purchase, the model will be available for download.

In order to help with this planning, I have built a financial model in excel specifically for a used car dealership startup. It goes out 5 years in time with monthly/annual summaries.

Nowadays when you hear "startup" you often think of tech, but people are still buying cars out there and you can facilitate that process.

Planning out expected sales and costs will help you with the budgeting, financing, and goal tracking. It is a great way to see what kind of cash flow you can generate given the fact that you hit a certain car sales count per month.

I have added up to 20 car types that you can project. These car types could be all kinds of cars, but the point is that each type represents an average cost and markup per car. I felt that 20 fields here was plenty for any startup operation.

Other assumptions include entering the planned amount of cars sold for each type and the month you plan on starting to tell those cars. The goal was to give users the ability to plan ramping. For example, you may want to start of selling a few car types and then over time move into greater diversity. The same goes for the fixed monthly costs and specifically salesmen.

The main financial metrics that you will see include top line monthly/annual car sales, revenues, cost of goods sold, gross profit/margin, fixed running costs, and EBITDA.

Based on the 5 years of operation and an exit value, you can also do a fully integrated enterprise value based on discounting the future cash flows.

In the financial model, you will see the terms leveraged and non-leveraged. That is because I wanted to show the variation between two scenarios at the same time. One being a scenario where you get a loan for some or all of the startup costs and one where you are investing all the cash required by yourself or with some type of investment group.

There are also plenty of visuals to show the story of your plan in a quick look. One of the interesting financial performance metrics I added in is the amount of EBITDA generated per car by year. This was also put into a chart.


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