Buying a petrol station..Good idea? How to finance..

[autoholic]

I've seen a petrol station, currently not trading but was 2 years ago, for sale and was wondering if it's worth the effort and commitment required. There is also a small showroom which I thought would be good to sell a couple of cars from. The site is in need of development, i.e. new pumps, lick of paint etc.
Also where can I go for finance for such a project? The site has room for a house, which I'd need to build as there is no accommodation in the current building, and I'd need to add the cost for htat in too.
I reckon I could get it all up and running for 350 - 400k
Thanks in advance for any advice.

[peterh2]

Would be very careful about this. All the independent petrol retailers seem to be going bust very quickly. Check the prices you can actually buy fuel for and compare that to what your rivals are charging.

[autoholic]

Prices for diesel range from 115.9 to an eyewatering 121.9
Petrol is pretty static at 107.9

[Shrimper]

Are there any petrol stations nearby? Does the plot have planning permission for a whole new house to be built? Independant stations always seem to cost more, and there seem to be less and less of them around. If you can get your petrol to sub £1 I will definitely visit...

Like the idea of the little showroom though..

[Davel]

I suspect that any site worth having will have been snapped up by the larger retailers before now.

Do the petrol stations make good money or are they just collecting tax?

[okgo]

Most of the profit comes from the food ect in the shop no?

I heard VERY little is made on the fuel..

[sleep envy]

autoholic said:

The site is in need of development, i.e. new pumps, lick of paint etc...

...I reckon I could get it all up and running for 350 - 400k

I think your budget is well short of what you need - tanks and interceptors (which get inspected by the Enviromental Agency on a regular basis) deteriorate very quickly when not used, similarly the pumps will have siezed - distributors won't refurbish them either

come the 30th April I will complete the redevelopment of a petol station in Plymouth

it's taken 4 months to complete, the works include;

- remediation of contaminated soil
- replace tanks
- replace petrointerceptors
- new kiosk
- new pumps (6 nr)
- new slab
- new canopy
- refurb jetwash, air and water machines
- landscaping
- new signage included totem
- etc, etc

total cost - £1.6 million

[Glassman]

OP said:

300-400k

sleep envy said:

total cost - £1.6 million

Yikes.

I make that a:

[autoholic]

Thanks for the advice guys. The stations is VERY rural and the next nearest one is about 5 miles in one direction and 10 in the other.
Will have to investigate about when the tanks were referbished last.
Thanks again

[sleep envy]

no probs

remember you won't make any money from selling the fuel, the margins are too small - the profit comes from your 'offer' in the kiosk

[stimmers]

I don'tknow much about Petrol Stations, but i have a place in Portugal and my neighbour who lives there all year round owns petrol stations on the Bristol area. He's recently added another floor to his villa, extended the pool, built a tennis court and has a new CL63 AMG and a new X5 in his drive.

I know he has a bit of a property portfolio, but nothing major and has no other business interests

[poocherama]

My family owned one for 30 years, never really made any money. Car wash, kiosk, offices, work shop, small car lot. Knocked the whole lot down and have built flats on the site.

[Andrew[MG]]

http://www.ace-cafe-london.com/default.aspx

Do it!

[AndyAudi]

sleep envy said:

no probs

remember you won't make any money from selling the fuel, the margins are too small - the profit comes from your 'offer' in the kiosk

Have to agree big time on this point, small stations have to finance their fuel in advance or their tanks won't be filled and they get hammered with charges to accept credit cards. These alone are likely to cost in excess of 2.00ppl. (The fact these are both percentage driven means the costs have significantly risen in the last 10 years making many small stations not viable, increasing fuel price does not help this going forward). I know I'd drive the extra 5 or 10 miles even it only saved a pound and much of the public are the same.

[Chrisgr31]

A petrol station will not make money, if it does the fuel companies will operate it. End of story!

Petrol stations can survice by selling other products etc, but if a atation is failing and there is demand for it the fuel companies will buy it. So if it closes it doesn't make money!

[POORCARDEALER]

pal has had a petrol station for last 30 years, he needs 3p a litre profit to cover his overheads, but if he adds 3p a litre to his wholesale price, he is 5p a litre dearer than tesco down the road...........u must have a large shop on site to make money.

[B17NNS]

sod the petrol, no money in that game

http://www.subway.co.uk/business/index.asp

[autoholic]

Thanks again guys, I've decided not to bother.
And no not near Ledbury, in Aberdeenshire.
Cheers again

[Wacky Racer]

http://news.bbc.co.uk/1/hi/magazine/7306967.stm

[AndyAudi]

autoholic said:

Thanks again guys, I've decided not to bother.
And no not near Ledbury, in Aberdeenshire.
Cheers again

Autoholic, out of interest where abouts? you come up as being less than 25miles from me (Turriff)