Why should dealers be interested in selling their real property to American Automotive? We seek to provide some answers below. For a specific and detailed discussion concerning your dealership properties, we encourage you to call us. Your inquiry will be kept in the strictest confidence. Trading dealer real estate for an interest in two businesses: The capital appreciation potential of dealership real property, while it may be attractive, is still limited. In contrast, American Automotive Trust can convert dealership real property into ownership of two compelling businesses at the same time. The first is a fractional ownership of many dealership properties. Dealers selling their real estate to American Automotive still retain complete control of all aspects of their operations. Second, depending on how the sale of the real property is structured (i.e. part cash and part equity), dealers can become owners in a growth business of earning the yield spread on an increasing portfolio of assets. Dividends can partially replace foregone rent: American Automotive will pay fair market value to dealers selling their real estate to the company. Some dealers may opt to sell for cash and stock. For dealers which choose this option, depending on the amount of stock received, future dividends can amount to a considerable fraction of the after-tax rental income which dealers currently receive and will forego when their property is sold. Alternatively, dealers which sell their property for all cash will not obtain this benefit but they will be paid fair value for their real estate. Diversification of real property Some dealers may feel their real property is valuable and should not be sold. We agree to an extent; after all, American Automotive purchases similar dealership real estate. The challenge for dealers is to optimize and get the highest possible return from their real estate. At some point, the appreciation potential of dealers’ real property diminishes over time. This is in part mathematically driven. For example, 15% appreciation on a lower priced property (i.e., $300,000 on a $2 million property) may be easier to obtain than on a much higher priced property (i.e., $900,000 on a $6 million property). American Automotive believes many dealers are better off selling their property to focus on their operations which have the potential to grow faster and provide a greater return on equity. For dealers which choose to sell their real estate for cash and stock, we offer a potentially tax efficient transaction and the opportunity for dealers to own a larger, diversified and growing portfolio of dealer real property.