Wow.
HC dealers have never been a place that would ever really cut to the bone for a hack but also a place where in my experience they’re fair and don’t play games other dealers do. Wonder if that changes.
I wonder about dealership consolidation long term - if like, 4 companies own all the dealers, why wouldn’t the manufacturers buy them out and start selling direct?
Answer would vary by state. In Michigan, the franchise law prohibits them from doing so
New york law had a ban on manufacturers owning dealerships unless grand fathered in pre ban
So is this group a proponent of moving to one price sales, front end sales commission as a line item, or heavy backend F&I games?
Why not all three?
To my knowledge, the Herb Chambers group have always had the one-price model. I don’t recall ever getting a car from them. They were not always the cheapest deal in town, at least in MA.
Was that a recent change? Lexus in Sharon was not when I dealt with them during 22-23.
Agreed though they were not competitive.
I never worked with that dealership, so no clue. A few years ago, when I was shopping for a BMW, I reached out to their dealership in Boston (on Comm Ave). Pricing was not that great so I moved on.
I just pulled up their website, they have Smart Pricing which I guess is their branded one price model.
I love that he kept the Mercedes dealership in Somerville. I always see his helicopter on the roof, I wonder if there’s something unique about that dealership or if it has sentimental value for some reason.
Looking at these numbers I wonder why Nick Saban paid $700 million for two Benz dealers.
I have had them negotiate deals to invoice but they’re never the best deal.
But on something like a Maverick order they won’t add on anything and will take x-plan.
It’s possible land is involved in one deal, but not the other. Just speculation
Still doesn’t make sense to me. Police station was sold for $16 million in 2021 and $45 million in 2023.
Welcome to the world of corporate money laundering
Totally not inflation
Well Florida doc fees and overall high pricing and volume could make those dealerships a lot more profit. They’re both in very wealthy areas and the land is prob worth a ton. In acquisition they buy their debt too, can’t see the numbers of these deals since private I would guess
Article also noted that herb is keeping his Benz store in Boston.
He has some other huge Benz and BMW locations near where I live. Benz one just moved to a brand new space.
From the Globe “The deal price of $1.34 billion includes $750 million for the value of the Chambers brand and $590 million for the group’s real estate, but it does not include an additional unspecified amount that will be paid to Chambers, to be calculated by the time the deal closes this summer, for other assets — such as the vehicle fleet, parts, and supplies.”