Skip to content

5 Reasons Why Dealer Real Estate Valuations are Flawed

Dealers can unlock trapped equity with Legacy Automotive Capital’s specialty financing programs, providing them access to funds to use for growth, renovation, or expansion.

Differing valuation perspectives by their Appraisers

1) Income Approach vs. Owner-Occupant Valuation:

  • Appraisers focus on property use value, de-emphasizing rental income
  • LAC values properties based on rental income and return on investment

2) Appraisers Incorrectly Compare Property Types:

  • Ex: Appraisers often compare Toyota properties to Nissan, Used Car, Carvana properties
  • LAC values properties appropriate

3) New Car Volume

  • Appraisers Ignore New Car Volume
  • LAC Highly Values new car volume

4) Brand Value

  • Appraisers do not understand brand value
  • LAC takes into account brand ranking/status

5) Image Compliance

  • Appraisers rarely understand if a property is newly imaged or in need of image redevelopment
  • LAC values image status appropriately

Request Complimentary Valuation