The new car segment of this industry represents more than half of this volume, and revenues are generated and services offered, through the network of over 3,500 new car dealership facilities, in Canada.

New car dealers operate by way of a Dealer Sales and Service Agreement with their manufacturer, that entitles them to represent a brand in a specific territory, while the dealer agrees to adhere to certain policies, procedures, objectives and operating standards, including provisions for the nature and extent of the facility.

The Canadian retail automotive industry is currently undergoing significant change, characterized by:

• Consolidation of domestic dealership points
• Expansion of import dealership points
• Increasing expectations and demands of manufacturers with respect to the quality, style and size of their dealers’ facilities
• Well-documented demographic shift in the dealer population: 50% of dealers in Canada plan to be retired or semi-retired within five years, and more than 80% within 10 years
• 55% of dealers see themselves selling their interests outside of the family, and one-third of dealers over 55 years of age have no succession plans
• A rising trend toward ownership consolidation of dealerships

DealerFund is well positioned in Canada to provide dealers with a new source of capital, founded on an understanding of their business, and the changes taking place in the industry.