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Lee Benson: Car dealer sees losses accelerate
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How many cars would you have to sell to cover a one month $170,000 loss? Get Real! Your comment shows that you didn't give it much thought. Dealers are definitely hurting right now. Too many people don't understand that it is tough. When your inventory depriciates by 30-40% in one month like it did late last year you are going to take heavy losses. Maybe if your company goes down and leaves you without work you will realize that it is very difficult out there for many dealers and other businesses as well. I used to sell cars and never in our history did we have a year end gross profit of $170 K.
Business needs to learn to NOT rely on credit to pay its month-by-month expenses. If not, it's a Ponzi, not a business.
Debt = Risk
I'm heartened that the commentors recognize that it is the business debt that is hurting this business owner's bottom line, not the economy or his customer's lack of credit.
I hope we all see how buying a TV or a vehicle on credit is the same as the above situation.
I have nothing but praise for the way Jared and his employees do business
And, for what it's worth, that's what car dealers do! They finance their cars with a flooring line! You think LHM and the other big dealers are paying cash for their inventory? Nope.
What, no luck after 90 days? Well, don't worry, at 93 days the bank will come get everything and you and all the employees that depend on you are out of a job! What was that old "cast stones" thing again?
It is a shame to read some of these comments. Get a clue. Hats off to Americans like Jared who have the courage, capability and creativity to figure out how to contribute and be successful and do it honorably. There are more than 65 used car dealerships in this state that have gone out of business and more that will. It speaks volumes for Jared's group. They are still in business and figuring things out. Here is a guy that started in his basement, worked up to selling 110 cars a month, purchased his real estate (a multi tenant building which he can either continue to operate out of or lease as an investment property), and is still in business during these very difficult times. An example of hard work and success. Proud to have done business with you. Keep up the good work. I will be back to buy ANOTHER car.
I hope Specialties can make it through this difficult time.
It's a shame that good dealers have to be subjected to the bad part of the economy.
My husband was looking to trade in our BMW X5 on a new model and I suggested we look at an American car to help the economy. Well, after going to J Seiner and waited for a sales for a long time. We asked to drive the 09 Hybrid Escalade and no wonder the big 3 are going broke, it was loaded with plastic where for $75,000 it should have been wood, cheap parts, skinny steering wheel reminded of my parents old cars and a analog clock that was so small you could not tell if it was 3 or 4 o'clock. The ride was ride but the fit and finish were very poor. Used Car-Buyer Beware!
I completely understand that business is not run this way and if you want to be competitive and stay ahead of the competition blah blah blah then yes, go ahead and buy everything on credit like everyone else. But when the market takes a dump, banks stop lending and suddenly you are left holding the note, guess who is the ONLY one responsible? YOU.
Society has been brainwashed about buying on credit and it needs to stop.
The market has indeed changed, but I am hopeful that Jared will make it through these down times. Honest car dealers, particularly honest used car dealers, are extremely rare. I went through a few of the bad ones before I found Specialties.
Hopefully, the goodwill Jared has accumulated with loyal customers like me, combined with the reduced competition in the market, will help Specialties to weather this storm.
I personally have never bought a car from Jarad but in the future I will definatly check his buisness out, all you dooms dayers who are so Negative about anyone trying to get ahead outside working for someone else...SHAME ON YOU, you will be the same ones complaining when the economy turns around you cant figure out why your not getting ahead Working for someone else =Helping them get ahead not you,,F.Y.I.
I know it is easy to jump to conclusions, but until you have all the facts, I'd suggest you temper your stone throwing.
Prior to opening of his dealership, Jared never did any of this when he was still dealing cars at his home, hence, according to state regulations, he was breaking the law, which the law never caught.
This law was set up with the precise reasons to avoid home dealers such as Jared, as the repercussions by unscrupulous dealers could really end up hurting people in the very real sense, because innocent buyers thinking they're buying a regular guy's car, turned out that it has a problematic history that could disintergrate while driving on the freeway, etc, all because of profit making.
However, it's too bad that he had to break the law in his car dealings earlier on.
I'm sure that, now he is licensed, bonded and insured. Otherwise, his operations would not have lasted as long as it already has.
value. If you are of value to your friends, clients, family and the community you
truly are a success." Smart man. I really feel Jared is the embodiment of this idea. We should fiercely support and refer excellent business owners in ANY industry who operate this way. We will always need cars, homes, maintenance services, etc. I want people like Jared to be around to help me with the products and services I need now and in the future.
Specialties Automotive is first class in the quality it offers and stands behind. The business is a diamond in the rough though because it offers great value, meaning you get great quality at a great price.
At the heart of this business is a man who is the definition of integrity and trust. Put him to your own test as I have done 3 different times (and will do again shortly) and I guarantee you will be pleasantly dealt with. I have nothing but high praise for the experiences I have had in purchasing both business and personal vehicles from Jared and his staff. Jared will be successful because of the eye he has for quality and the way he deals fairly with everyone. We need more business men like him to instill confidence back to the consumer especially in times like these. Best of luck Jared in riding through the challenges.
People are frustrated with the economy and the idea of successful business owners. As a result, many seem to have a hard time just hearing facts as they are without seeking some kind of needless justice.
The story looks to me to simply be a snapshot of where we are now in the economy. Not a call for legislative action or a call for public knowledge of the logic behind his personal business decisions.
I would wish great luck to Jared, because when the good local and the small companies of Utah go out of business it really doesn't profit us one bit.
It gives the impression that this business was began at home, when you took the home equity line and started selling them for a profit. There was no mentioning that an office was opened, small or otherwise, and that only repeated success of doing it again and again, that constituted your decision to do it full time, only after much success had been reaped.
It's not unusual for one to begin a business out of the house's garage or basement. Apple, Amazon, and many other huge companies began their businesses out of their homes. The difference was the state law when it comes to buying and selling vehicles multiple times.
Sarah, Jared is made to sound like a prophet, glorifyiing him to the tilt. He is a car salesman for goodness sakes, no more, no less, so please, don't pretend that car salesman doesn't deserve the reputation they dug for themselves.
After all, if you want to wager as to the consensus of 100 people, as to the reputation of car salesmen, you'd lose money on it.
And Jared, nice man he might or might not be, and there are certainly unhappy customers that had posted on this commentaries as well, so, maybe blood is thicker than water, but certainly not thicker than truth.
A balanced approached to a too glorified car salesman is more appropriate then protecting a family member.
Remember, it's only cars, nice cars they maybe, but he is no prophet, so don't elevate him too much, cause he might just get a big head.
Learn to be humble, all of you, and Glorify God instead.
Go ahead, it doesn't bother me as to how far you bury your head in the sand.
Somehow your ignorance think I'm the one that created the bad perception about car salesmen. And the even lower reputation of lawyers as bloodsuckers.
I wished I had such powerful influence in creating the perception Americans have of salesmen and lawyers.
Sounds like you haven't opened your eyes deeply enough that it wasn't me.
But heck, this is Utah, who has logic as shallow as the President they had voted for in the last 8 years.
About belittling the entire industry, hey your own congressman, and your to be new President has already done that, no need my posts to promote incompetence and poor judgements. But, like I said, get angry and blame me. You need to get your anger somehow, so, fire away.
Remember, Congress' slapping the faces of the car industry is not trying to find the jerks in any industry, they're actually saying it to all of the big 3, loudly and clearly, as slow learning idiots.
If you're bothered, then tell your congress to be nicer to the big 3
Lets start with $10,000, and if you feel that's not serious enough, we can bump it a little to $20,000.
If your mouth is as real as it is loud, and willing to put money in it, then we'll hire an attorney to draw up the contract, make the rules clear, follow state laws accordingly, and we'll both sign it.
To make sure the winning party wins, we have to draw up an escrow account with the wager deposited in advance, so the winning party is guaranteed to be paid.
Since you do not agree and accuse me for, "name" calling, then we'll settle this with something other than just a bunch of words. I think this will certainly clear up any doubts in yours or anyone's minds, that the car selling industry is as bad as the reputation it has earned.
So, when do you want to start?
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