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Owning a Lexus Dealership

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Old 02-07-15, 08:36 AM
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gyrase321
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Default Owning a Lexus Dealership

Is this more lucrative than simply owning shares of Toyota Motor Corp (TM)? TM has delivered a 10 year annualized return of 6.51%. Not bad. In fact, given the global financial crisis and stock market volatility we just experienced (still do) over the last 10 years, 6.51% is actually quite good. I suspect owning a Lexus dealership is going to be more risky, labor as well as capital intensive, but the returns - if they materialize - should far exceed 6.51% per year.
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Old 02-07-15, 09:07 PM
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S2000toIS350
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I think your answer can best be illustrated on Rt 41

Have a look at the the original and new giant store Lexus of Highland Park built (they sit right next to each other)
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Old 02-07-15, 11:19 PM
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pman6
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there are probably better things you can do with multi millions of dollars than owning a lexus dealership.

After you pay all the workers, you're probably no better off than diversifying your portfolio.
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Old 02-08-15, 08:45 AM
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chikoo
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Originally Posted by gyrase321
Is this more lucrative than simply owning shares of Toyota Motor Corp (TM)? TM has delivered a 10 year annualized return of 6.51%. Not bad. In fact, given the global financial crisis and stock market volatility we just experienced (still do) over the last 10 years, 6.51% is actually quite good. I suspect owning a Lexus dealership is going to be more risky, labor as well as capital intensive, but the returns - if they materialize - should far exceed 6.51% per year.
Invest where your passion lies. If you do not have one, mutual funds is a better option. Owning any business gives no better returns than investing in shares in the open market.
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Old 02-08-15, 09:01 AM
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FastTags
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Do you really have the means for a dealership this size???

I have some stock in MTGE mortgae, yeild is 13.9% . At some
Point it was 14.9%. Beats the 6.5%
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