Financial Models

If you have a knack for finding good deals on used cars and reselling them at a profit, starting a used car dealership might be a worthwhile opportunity and investment. This used cars financial model has all the key assumptions you need to build out a monthly and annual pro-forma as well as a DCF Analysis.

The model has general assumptions about debt / equity financing based on the starting inventory investment, other startup costs, and operating activities. The general flow of revenue creation is based on a defined average cost and percentage markup for up to 20 car types that are categorized into low price / mid price / high price. The expected monthly sales in each year are also defined per each 20 slots as well as the start month if you plan on scaling into different markets at different times. Final outputs of the model include an IRR, terminal value based on revenue or EBITDA multiple, and total ROI. Visualizations are included and range from bar charts to combo charts and area charts that make it easy to see cash flow and key financial line items over the course of the forecast.