What was the average vehicle purchase price for Byrider stores in the first quartile?
Byrider Franchise · 2025 FDDAnswer from 2025 FDD Document
r 31 in 2022 and 2023) of Stores Open 24+ Months as of 12/31/2023
STORE RESULTS BROKEN DOWN INTO QUARTILES
| First Quartile = 25 Stores | Average | Exceed Avg. | Median | Second Quartile = 25 Stores | Average | Exceed Avg. | Median |
|---|---|---|---|---|---|---|---|
| Vehicle Purchase Price 26 | $7,166 | 52.00% | $7,162 | Vehicle Purchase Price 26 | $6,579 | 48.00% | $6,72 |
| Reconditioning Expense 27 | $2,395 | 64.00% | $2,134 | Reconditioning Expense 27 | $2,214 | 48.00% | $2,287 |
| Down Payment (cash/trade/deferred) 28 | $2,597 | 36.00% | $2,332 | Down Payment (cash/trade/deferred) 28 | $2,552 | 48.00% | $2,457 |
| Gross Mark-Up 29 | $7,148 | 52.00% | $7,190 | Gross Mark-Up 29 | $6,942 | 56.00% | $7,092 |
| Installment Contract Amount Financed 32 | $15,484 | 52.00% | $15,661 | Installment Contract Amount Financed 32 | $14,388 | 56.00% | $14,621 |
| Interest Rate 33 | 20.80% | 44.00% | 20.35% | Interest Rate 33 | 21.45% | 48.00% | 21.23% |
| Monthly Payment Equivalent Amount 34 | $495 | 44.00% | $487 | Monthly Payment Equivalent Amount 34 | $480 | 40.00% | $476 |
| Discount Rate 30 | 29.28% | 64.00% | 30.00% | Discount Rate 30 | 29.58% | 76.00% | 30.00% |
| Average Trade Percentage 37 | 21.55% | 40.00% | 17.48% |
Source: Item 19 — Financial Performance Representations (FDD pages 63–81)
What This Means (2025 FDD)
According to Byrider's 2025 Franchise Disclosure Document, the average vehicle purchase price for stores in the first quartile varies depending on the number of stores included in that quartile. When the first quartile consists of 25 stores, the average vehicle purchase price is $7,166. However, when the first quartile consists of 23 stores, the average vehicle purchase price is $6,746. When the first quartile consists of only 2 stores, the average vehicle purchase price is $5,872.
These figures represent the average amount Byrider stores in the lowest-performing quartile spent to acquire vehicles for their inventory. A prospective franchisee should consider these numbers in conjunction with other financial performance metrics, such as reconditioning expenses and gross mark-up, to understand the overall profitability of stores in this quartile.
It's important to note that the number of stores in the first quartile can vary, which impacts the average vehicle purchase price. This variability may be due to factors such as store closures, new store openings, or changes in the overall number of reporting stores. A potential franchisee should inquire about the reasons for these variations and how they might affect their investment.
Understanding the vehicle purchase price is crucial because it directly affects the store's cost of goods sold and, consequently, its gross profit margin. Lower vehicle purchase prices could lead to higher profit margins, assuming other factors like reconditioning costs and selling prices remain constant. However, it could also indicate purchasing lower quality vehicles that may require more reconditioning or be harder to sell.