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My business is failing...
Took me a while to come to terms with it, especially having a very good 2013, but as of August, even with one record setting month in May with 24 cars sold, Ad Astra Automotive has barely been able to clear its expenses. Their are 3 main issues that brought it down.
1: Overhead more than doubled. I was sharing the space with another dealer who is going under. Not only did they help with the overhead but I did most of the car buying and selling for them, which supplemented my income.
2: Sources of inventory dried up. Cars at my local dealer auction and nearby sources are selling for more than what I can retail them for. Buy here pay here's are taking over, and don't care what they pay. Good old import cars are gone. The newer ones are always basket cases I cannot fix and make any money.
3: Back shop drama. My mechanic has been slipping due to personal issues. Friendship got in the way of business and I did not let him go quick enough. Things missed in repairs and inspections have cost me big time as I stand behind my vehicles alot more than most used car dealers.
I stand to have an excellent month for August that will put me into the positive, but things slow down wayyyy down from here. The fourth quarter and holidays are very slow until tax money starts coming.
I have a great opportunity lined up, but the change was originally not supposed to happen until next May. I'm going to see if I can start sooner, or do my best to muddle through in the meantime. My lease is up May 1.
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