Used Car, RVs, Trailers, Utility Trailers, ATVs, UTVs, New ATVs/UTVs, Motorcycles, and Boats.
The Company also is a Dealership for Several Rural Lines of UTV’s and Trailers
Location: On the main street of a fast growing small town South of Denver
The trailing 12 months to August 31, 2026, revenues were 2.74M with 176K in earnings.
The Sales Price has been lowered to 350K plus his cost of inventory which is currently estimated to be an additional 350K. The owner has decided to shut down the rental side of the business because it was not generating much profit, is seasonal, will allow him to reduce his labor by one employee, has been more maintenance than he expected, and most importantly will free up space for their core business inventory which is a lot more profitable than the rental side. He has stopped new rentals and will liquidate the rental equipment over the next couple of months while increasing the used inventory for sale.
The adjusted earnings spreadsheet in the data room does not have an add back to offset this change because it would be a guess. He is positive that having that extra space and shedding the small loss that the rental side showed will result in a more profitable future.
The owner States " We carry many types of new and used inventory for your work and recreation needs.
Our inventory is constantly changing and there is always something new to check out. We can ship nationwide and pride ourselves on having fair pricing. For Sellers, we also buy all sorts of items and take consignments.
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Used car dealerships typically sell for above normal multiples for many reasons. The 350K sales price has been lowered to a multiple that is less than 2X times the 176K in trailing 12 months earnings to August 31st 2026. This includes the FF & E but you must buy the inventory at cost to get the final sales price.
As of August 31st, they have 354K in “owned” inventory for sale at their cost which creates a total sales price of 704K.
Inventory should be thought of as more valuable than cash for the following reasons: The more that the business has in inventory at cost, the more you will sell for profit right after the closing. In addition, this allows you to finance the purchase of the inventory through a bank loan as part of the total purchase price.
When you sell the inventory, you will recover the cost PLUS a profit. This will also reduce or eliminate the need for working capital as you will turn inventory into cash every day from the closing date forward. He owns approximately 80% of the inventory but you can finance new inventory through using “floor plan” financing which should reduce the amount of working capital that you will need post closing.
They have historically offered 3rd party financing that they do not make any money directly off of BUT they have recently partnered with a local bank to provide financing whereas they are paid to refer the customer. This can be expanded to more choices by the new owner.
The owner works 25 to 35 hours a week and is Selling because he wants to retire to spend more time with his family.
The Sales Price has been lowered to only 350K which is only 1.98 times the earnings is a low multiple for a used vehicle dealership PLUS whatever his cost of his current inventory for sale(not rental inventory). The owner is offering to carry up to 50% of the price of the business for a qualified buyer(not the inventory) and will help the buyer obtain floorplan financing for the inventory which should be approximately 80% eligible for floor plan financing.
This means that the buyer can avoid an SBA loan by bringing 175K to the closing because he is willing to carry the other 50% of the business sales price, plus an estimated 20% of the cost of the inventory that can’t be floor planned which is 75K, and a small amount of working capital of 25K. The business is being offered with the Seller keeping his cash, AR, and they will pay off all debt including the AP.
The business is in a rural area that has large properties, horse ranches, farms, and most importantly is one of the fastest growing areas in Colorado which makes the demand for UTVs, trucks, and utility trailers very high.
They are also a dealer for several lines of trailers, UTV’s, etc.
Growth Opportunities:
Increasing the inventory: Adding a leased space nearby on a property where inventory can be stored with quick and easy access for the dealership. Since 75% of demand comes from online and the cost to store the extra inventory will be substantially less than their main property, it makes sense to add inventory this way as opposed to a much more expensive property.
Adding a 2nd location: The owner has learned exactly what is in demand in Colorado small rural towns. There are hundreds of small towns in areas that will see heavy growth for many years on the front range of Colorado.
Increasing exposure through additional signage and an additional vehicle ramp to showcase a 2nd vehicle/trailer/UTV at the low point of their street exposure.
He only spent 34K in marketing last year which compared to their 3.57M in revenues which is just over 1% of revenues. They suspended their paid google promotion of their website this past winter but that should be resumed.
There are many things that the new owner can do to increase the marketing online including adding Next Door to the advertising which is big in rural areas.
Model the business to always have at least one of the highest demand, and most popular inventory items at the front of the lot which are classic or very unusual vehicles. They not only draw attention but always sell quickly.
Adding financing options that pay the business owner. They just secured third party financing which will now pay them 2% on the amount of each loan. They have also signed with a financing company which is a rent to own company for new trailer “financing”.
This allows them to get paid for the entire piece of inventory up front but the buyer can pay overtime to the financing company. This will allow them to carry more expensive inventory and the ability to sell more of the inventory.
Add more dealership lines of new equipment and trailers.
They have agreements with but are not currently stocking sure-trac trailers, Evolution golf carts, Boxer equipment (mini skid steers), and RexNordic heaters.
The new owner will need to have or to get a franchised new car dealer license to sell new trailers and a power sports license of American Landmaster, Echo, Titan/tomahawk Accessories, and Evolution. The new owner should have both sales and marketing experience and have the aptitude to learn how to properly manage the business.
There is 50 miles between Denver and Colorado Springs which is part of Colorado’s “Front Range” that is expected to be fully developed someday with more than 30 small towns.
Other Details:
The company has 3 trustworthy, competent, and reliable employees other than the owner. They have room for new employees if the new owner wants to grow this company.
The Sellers believe all employees love their jobs and will all stay after the transition.
Their location details are: He rents their location for only 3,500 a month which is a “Gross” short term lease. The landlord is open to a longer-term lease and has only asked for the ability to increase the rent at slightly over the increases that are expected in property taxes over time.
This is a very good deal. Leases in and around Denver would be significantly more expensive. The property is .
26 acres and has an old house with approximately 2200 square feet upstairs that is used for sales, the office with 3 work stations, the main bathrooms, and a small showroom that had some accessories, and another 1000 square feet downstairs which has two garage doors and is mostly used for storage, repairs, and maintenance.