Appraising Automobile Dealerships

• Identify a dealership property and the related important terminology.
• Recognize how dealership franchises work and relate to properties that are bought and sold.
• Identify the components of an automobile dealership and the different functions and profit centers.
• Determine the fundamentals of auto dealership property market analysis.
• Identify the questions that market analysis must resolve from the perspective of both the operator of a dealership and the owner of a dealership property (which may be a landlord who does not operate the business).
• Recognize the 5-step process of developing a market analysis.
• Identify the important criteria in analyzing and evaluating a successful auto dealership location.
• Identify characteristics of auto dealership improvements to develop a credible appraisal.
• Recognize functional features and characteristics in the current market and the markets the industry envisions in the future.
• Identify how the three approaches to value relate to automobile dealership property valuation.
• Identify property that is operated in conjunction with a going concern.
• Determine valuation issues specific (or common) to automobile dealership property appraisals.
• Identify an auto dealership’s highest and best use, the six-stage lifecycle, and how it relates to various valuation premises.
• Recognize the foundation for a credible analysis.
• Select, verify, and present comparables and identify the relevance and limitation of the sales comparison approach.
• Identify the various units of comparison, along with their attributes and shortcomings.
• Apply adjustments properly.
• Identify how to value the underlying land and relevance and limitations of the cost approach.
• Estimate the depreciated cost.
• Identify basic methodology for the income capitalization approach.
• Recognize the difficulty in finding good rent comparables and how to proceed in their absence.
• Develop a pro forma and income capitalization.
  

Program Overview:
Online Syllabus

Assignments:
No

Equipment:

• A financial calculator is required. The accepted model used in the program is the HP-12C. AI education programs that require a financial calculator are developed with HP-12C keystrokes; using this model is highly recommended.
• You must be familiar with calculator operation when the program begins. Do not enroll expecting to be taught how to use a financial calculator.
• Free Review: Using a Financial Calculator: Formulas, Symbols, Math Review, and Sample Problems; and Financial Calculator Practice Exercises.
• For additional help with the HP-12C calculator, take our online seminar Using Your HP-12C Financial Calculator.
• HP-12C calculator User’s Manual.

Additional Information:

Requirements:

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