Investing in Car Dealerships – How to Value Them

Most business valuations are driven substantially by the company’s historical financial statements, tempered by other factors such as: location, brand name, management and such. In truth and in fact, the dealership’s balance sheet represents less than half the information necessary to properly value an automobile dealership. The balance sheet is but a starting point from which a number of factors must be added and subtracted in order to determine the true value of the assets.

Valuing new car dealerships has to do with projecting future profits and opportunities based upon the “dynamics” of the particular dealership being valued and of the automobile business itself.

The Internal Revenue Service recognizes that valuations include more than financial statements: “The appraiser must exercise his judgment as to the degree of risk attaching to the business of the corporation which issued the stock, but that judgment must be related to all of the other factors affecting the value.” Revenue Ruling 59-60, Section 3.03.

DEFINITION OF MARKET VALUE

The definition of market value according to the American Institute of Real Estate Appraisers’ Dictionary of Real Estate Appraisal, is: “The most probable price in cash, terms equivalent to cash, or other precisely revealed terms, for which the appraised property will sell in a competitive market under all conditions requisite to fair sale, with the buyer and seller each acting prudently, knowledgeably, and for self interest, and assuming that neither is under duress.” American Institute of Real Estate Appraisers, The Dictionary of Real Estate Appraisal. (Chicago: American Institute of Real Estate Appraisers, 1984), 194 195.

In Revenue Ruling 59-60, the Internal Revenue Service defines “fair market value” as follows: “…the price at which the business would change hands between a willing buyer and a willing seller when the former is not under any compulsion to buy and the latter is not under any compulsion to sell, both parties having reasonable knowledge and relevant facts.”

The purpose of Revenue Ruling 59-60 is to outline and review in general the approach, methods and factors to be considered in valuing shares of the capital stock of closely held corporations.

The methods discussed in the Revenue Ruling apply to the valuation of corporate stocks on which market quotations are either unavailable or are of such scarcity that they do not reflect the fair market value.

The Ruling goes on to state that no set formula can be devised to determine fair market value of closely held stocks and that the value will depend upon such considerations as:

(a) The nature of the business and the history of the enterprise from its inception.

(b) The economic outlook in general and the condition and outlook of the specific industry in particular.

(c) The book value of the stock and the financial condition of the business.

(d) The earnings capacity of the company.

(e) The dividend-paying capacity. The ability to pay dividends is often more important than a company’s history of distributing cash to shareholders, especially when valuing controlling interests.

(f) Whether or not the enterprise has goodwill or other intangible value.

(g) Sales of the stock and the size of the block of stock to be valued.

(h) The market price of stocks of corporations engaged in the same or a similar line of business having their stocks actively traded in a free and open market, either on an exchange or over-the-counter. With respect to an individual dealership sale, the best comparable is the amount the public company paid or received for buying or selling a similar dealership, not what the public company’s stock value or earnings multiple, per se, that is reflected on the stock exchange.

In practice, in arriving at the fair market value of a new car dealership, several different formulas have been used:

1. Return on Investment (or earnings valuation) Formula: The value of a business to a particular purchaser based upon a return on investment analysis. This value varies from purchaser to purchaser, according to the purchaser’s investment criterion, and it may or may not reflect fair market value. The National Automobile Dealers Association (NADA) refers to this value as “Investment Value.” A Dealer Guide to Valuing an Automobile Dealership, NADA June 1995, Revised July 2000.

The capitalization rate is determined by the stability of the dealership’s earnings and the risk involved in the automobile business at the time of sale, investment, or valuation. This method is highly subjective as the capitalization rate is based upon the particular appraiser’s perception of the risk of the business; consequently, the lower the appraiser perceives the risk, the lower will be the capitalization rate and the higher will be the price he would expect a potential purchaser to pay for the business.

In short, the capitalization rate is the appraiser’s opinion as to a rate of return on investment that would motivate a prospective purchaser to buy the dealership. Considerations include those specified in Revenue Ruling 59-60, as well as available rate of return on alternative investments.

2. Adjusted Net Worth Formula: Net worth of the company, adjusted to reflect the appraised value of the assets used in the day to day operations of a business, assuming that the user or purchaser will continue to make use of the assets. To this “net worth” value will be added blue sky or goodwill, if any. The “Adjusted Net Worth Formula” is the most common method used in purchasing and selling a new car dealership.

3. Orderly Liquidation Formula. This method values the assets as if all of them had to be sold – not at a “fire sale,” but in an orderly manner and without time constraints. Normally, if the dealership is profitable, some value will still be placed upon goodwill.

4. Forced Liquidation. The lowest of all values, forced liquidation means that all of the assets must be sold at a forced sale such as an auction, creditors’ sale or by order of a bankruptcy court. A bankruptcy proceeding regarding a new car dealership almost never brings goodwill. This might be the most appropriate formula if the dealership has no lease (or only a short term remaining on its lease) and cannot, as a practical matter, relocate.

5. Income Formula. The income formula is basically taking the store’s earnings and multiplying it by an appropriated capitalization rate. The trick here is the definition of “earnings.” In determining “earnings” a perspective purchase could use any combination of the following:

(a) current earnings

(b) average earnings – add the last five years together and divide by 5

(c) weighted average earnings – usually an inverted weight with the current year multiplied by five, last year by four, the year before last by three, four years ago by two, five years ago by one, then adding them together and dividing by 15

(d) cash flow – net income plus agreed add-backs such as depreciation, LIFO, personal expenses, excess bonuses and such

(e) forecasted earnings – future projected earnings discounted to present day value.

6. Fair Value. NADA also refers to a third value in addition to “Market Value” “Investment Value,” which it calls “Fair Value.” NADA describes “Fair Value” as being “…primarily used when a minority shareholder objects to a proposed sale of the company in assessing liquidating damages.” and defines it as: “The value of the minority interest immediately before the transaction to which the dissenter objects, excluding any appreciation or depreciation in anticipation of the transaction and without reference to either a minority or non-marketability discount.”

The NADA guide states: It is not common for auto dealers to run across this particular valuation standard. This author has never used, nor has ever seen this value used with respect to valuing automobile dealerships.

As can be seen in this report, this author in discussing valuations excludes what NADA describes as “Fair Value”.

7. The Greater Fool Theory. The National Automobile Dealers Association publication (A Dealer Guide to Valuing an Automobile Dealership, NADA June 1995), bemuses, in part: “A Rule of Thumb is more properly referred to as a ‘greater fool theory.’ It is not ‘valuation theory, however.” (In its “Valuing an Automobile Dealership: Update 2004” NADA dropped the reference to “fool” and simply states that the theory is “. . . rarely based upon sound economic or valuation theory,” but advises sellers to “Go for it, and maybe someone will be stupid enough to pay [it].”

The considerations for valuing new car dealerships are more complex than those used for valuing most other businesses. Dynamics such as the unique requirements of automobile manufactures and distributors can limit the amount of monies that may be paid for a dealership, regardless of what perspective purchasers may offer to pay for the store.

Therefore, the value of a new car dealership varies based upon the needs and ability of the purchaser and, consequently, the same dealership could have two different values to two different purchaser and both values would be correct.

Thus, our valuation of the subject dealership should be considered in the context and limitations of the facts and history of new car dealership sales as delineated herein.

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Should We Start Using Alternative Energy Resources Before We Exhaust Non-Renewable Fuels

At the rate we are currently using our standard fuels scientists say that with in as little as 40 years we will no longer have any more non-renewable fuels to burn. Just like anything else on the planet there’s only a certain amount of this product obtainable and once it’s gone there’s no way to replace it. Our children are going to need to cope with this issue, but it’s possible that we are going to not actually see this in our lifetimes. In this article we are going to be taking a look at what is going to happen to the earth if we continue to use our non-renewable fuels the way we’re using them now.

A thing that you need to bear in mind once our oil is used up, is that we are going to not have the ability to run gas powered machinery which includes automobiles or even create heating oil for our homes. Homes can currently be heated using solar energy and automobiles can be run on electrical energy, but there are still many vehicles and homes that rely on oil. If the men and women on this planet would begin using these alternative resources now before we run out of our oil, it may lengthen the time we have before we run out of oil. There is obviously the chance that we are going to not run out of oil, and this can be assured if everybody would begin using alternative energy sources for their vehicles and to heat their houses.

Solar energy is among the things which can replace our reliance on non-renewable fuels, and it’s an energy source we are going to never need to worry about running out. One of the ways that we can actually utilize the sun to heat our homes is by storing the sun’s energy in battery packs and then working with those batteries to power electric heaters to keep our houses warm. Something else I ought to mention is that utilizing this kind of energy to heat your house is in fact free once you get past the initial setup costs. I ought to also point out that if you’re one of the folks who have an electric automobile, you can take full advantage of the same technology to charge up your automobile without shelling money out to the power company.

You need to keep in mind that the sun is not the only type of alternative energy that we can draw from, as we can also use the wind and water. Even though at this time it’s still simpler to harness the energy from the sun these other options are still available and in time will be just as simple to use.

The fact is, that if we continue burning our standard fuels at the rate we’re doing right now in 40 or 50 years they are going to be used up, and these aren’t renewable. By now I should not have to tell you how important it is to begin to use these alternative energy resources for your energy needs, and the sooner you begin using them the more prepared you are going to be.

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Bike Lanes Prevent Injury and Reduce the Need for an Auto Accident Injury Lawyer

In cities across the United States, drivers may be noticing a narrow separate lane has been added on the side of the street. These designated bike lanes, sometimes marked by a symbol of a bicycle to denote their purpose, are preventing automobile-bicycle accidents across the nation and saving people money they would have spent on hospital bills and an auto accident injury lawyer.

Many people excuses for not making the healthier, more eco-friendly decision to ride a bike instead of a vehicle include issues with safety and not having a smooth, continuous path on which to ride. Many Americans who own bikes simply consider them recreational toys that are meant to be brought to the park to ride around for exercise.

However, the bicycle is slowly reclaiming its place as a viable transportation device. Thanks to the addition of bike lanes in many major cities, more people have been getting to and from work, school and the grocery on two wheels.

Studies have shown that the number of bike accidents decreases as the number of bicyclists on the road increases. The lanes encourage main road bicycling, which has proven to decrease automobile traffic. The greater presence of bicyclists forces those who do choose to drive automobiles to take the lanes seriously and to yield to the more fragile vehicle.

In the Netherlands, for example, the rate of automobile-on-bicycle accidents is about 26 times lower than that of the United States. This is true despite the fact that about 25 percent of their population commutes by bike, while only 1 percent of our population does so. Why? The Netherlands, though a much smaller area, contains over 18,000 miles of segregated bicycle lanes.

The lanes encourage more cycling and less driving, a change that is overall beneficial. More cycling and less driving means less traffic, less pollution, more exercise, more safety and less money one would limit spend on gas, maintenance and an auto accident injury lawyer.

But some people have taken issue with the lanes. In New York, ironically one of the first US cities to establish enforceable bike lanes, protesters argue that the lanes take away from their rights as motor vehicle operators by forcing them to share the road. Other arguments against the lanes include the fact that they take away precious curbside parking spots, run through loading zones originally designated for delivery trucks and sometimes actually cause more traffic because of the narrowed lanes.

However frustrating the adjustment period might be, studies have shown that equipping cities with bike-friendly roadways severely reduces instances of automobile-on-bicycle accidents and injuries. The protection of people lives and physical safety outweighs the minor Inconveniences posed by the lanes.

In the end, most drivers probably would prefer to suck it up and yield to bikers than to have to deal with an auto accident injury lawyer after accidentally knocking a cyclist off of a bicycle-unfriendly roadway.

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Automatic Tunnel Robotic Car Wash Systems And Pre-Prepping Prior To Automobile Washing

Every carwash owner is looking for a system that is fully automatic and robotic for their tunnel carwash so that they do not have to do any pre-prep washing. If you ever go to a fully robotic carwash you might notice before the car goes in there is someone there with a little pressure washer, a brush and a soap mitt getting the car ready to go through the tunnel.

The first time you see this you think yourself why is that person there? Shouldn’t the automatic carwash be good enough to clean the car without any human labor? Well that is the dig really; the truth is no, most of them can’t. It is unfortunate that robotic carwash cleaning equipment costs so much and does not fully clean the car properly. If the carwash owners do not pre-prep the car then there will be customer complaints.

Of course if they do prep the car prior to wash it slows the speed, cuts down the volume of cars that can be washed in the day and changes the consistency of each car washed due to the human element. All this is true of course however, not all cars are created equally. Consider if you will that every car has different bodylines and the robotic carwash system may not be able to get to everything.

Those hard to get to spots can be cleaned in advance and pre-prepped prior to entering the tunnel carwash. There is somewhat of a debate that goes on in the industry, as to whether carwash owners should pre-prepped the cars.

But in the end if the car is not clean enough the customer is not happy and therefore they will not return and you will eventually go into business for not enough customers or get a bad reputation and the competition will end up smoking you in the market place. Please consider all this in 2006.

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Electric Car Motors – How Do Electric Car Motors Work?

The electric car is one of the technological wonders that the century has produced. It has challenged the way we look at automobiles and been able to apply ordinary technology to give owners a new way to drive and own a vehicle. For a long time, man has relied on the internal combustion engine for all his automobile needs. This engine which runs on gasoline principally has dominated the world of automobiles until recently.

In these few years, the trend has begun to change. Now, people are looking for electric cars. The reason is simple – they want a cheaper way to drive. No more expensive gasoline. Some also want to have a cleaner car – one that produces less smoke.

The electric car has all the parts of a regular gasoline car except one thing – it has no internal combustion engine. This means no gasoline. Instead of a gasoline engine, it rather has a motor that powers it to move. This motor is powered by asset of batteries. The batteries are powered by been arranged in a row and then their powers combined to produce enough current for the car to move. As the car moves the power is sued up. The batteries can be recharged after the car has made some miles.

Unlike conventional vehicles, the battery will not have to be recharged so frequently. It may take the car up to about 1200 miles before it needs a recharge. For city driving, this may be about a week or two.

Today, electric cars can make about 90 miles an hour; making them comparable to any mid sized sedan that you can find. With time, this speed will increase and the batteries will have a longer life.

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Ford's Story of Success and Pride

The headquarter of Ford is in Dearborn, Michigan, a suburb of Detroit. This is the place where the ex-chief engineer of the Edison Illuminating Company, named Henry Ford founded the, "Ford Motor Company", on June 16, 1903 with a capital amount of $ 28,000 along with twelve other investors. The famous scientist Thomas Alva Edison was a great friend of Henry Ford and he encouraged him to go ahead with his idea and dream of establishing an automobile company which will manufacture simple and affordable car for the Americans.

At the beginning only two to three workers worked on each car. On July 23, 1903 the company sold its first produced car, Ford Model A and Dr. Ernst Pfennig a dentist from Chicago, became the first owner. Other car manufacturers made cars for wealthy people but Ford developed a design and manufacturing method that reduced the price of the Model T, which made its debut in 1908 at a price of $ 825. In its first year a record sale of over 10,000 cars was reached. Four years later the price dropped to $ 575. By 1914 Ford claimed a share of 48% of the automobile market. The car was sold like hot cakes. With the rise in demand, Ford was able to reduce the assembly time of the Model T from 12.5 hours to less than 6 hours. Ford created history and became the change maker of the automobile market.

World War 1 came to be a turning point as it changed the course of automotive history. Henry Ford was able to draw a large profit at that time. Ford Model T cars were used by the several armies for war purpose. It not only served as ambulances but also as delivery trucks, staff cars and artillery movers. As soon as America joined the war, Ford started producing ambulances, trucks, vans, tanks and submarine chasers. Ford's Trafford Park factory in Manchester supplied the British army with 30,000 Model Ts as ambulances and transporters of troops, water and munitions carriers.

When World War II started there was a boost in Ford's economy as they were serving both the sides. They produced roughly around 2,82,352 war Jeeps in the years 1941-1945. Ford's bomber plant at Willow Run, located in the Detroit suburbs manufactured automobiles for war and not for public transportation. Ford V3000 ambulances were used in World War II by the Germans. Ford of Germany built a total of 80,000 trucks for the German army during the war.

Ford did not limit itself in manufacturing only cars. They also manufactured trucks, vans and tractors. In 1925 they also manufactured airplanes. They also produced some important cars in the history of automobiles apart from the Ford Model T. Ford 150 Pickup remained a best seller for almost six decades. Ford Mustang is the first American "muscle car". Ford F-150 SVT Raptor, Lincoln Continental, Ford Thunderbird, Ford Transit, Ford Capri, Ford Escort is some of the most popular Ford cars.

Engines play a vital role in car's success. Ford produced 3, 4, 6, 8, 10 and 12 cylinder engines till date. Some of the important engines manufactured by Ford, are Ford Model T engine, Flathead V-8 engine, Cobra Jet engine, Boss engine, Ecoboost engine, etc. The 1.0 Ecoboost is a UK-designed 3-cylinder engine which has won awards from industry judges and experts. The Ecoboost engine is developed to be more fuel saving, more Eco friendly and less costly. Ford is not only famous for producing beautiful cars, but also for producing one of the best engines and creating history in the competitive automobile market.

The Ford family is a proud owner of the company for more that 100 years. It is one of the few notable brands in the world whose ownership stayed in the family of the founder for more than a century. They take pride in producing the first ever car for the common man by breaking the idea that a car is a rich man's property. Ford always created examples in the automobile industry. "$ 5 day", is an important day in the history of mankind because around 10,000 people gave line with a desire to get employed at Ford when there was a salary hike of $ 5 per day. It created an impact within the society as well as in the automobile industry as the production rate and quality of Ford cars got raised after the hike.

Today Ford factories are located in the USA, Britain, Germany, India, Brazil, Portugal, Argentina, Russia, Spain and many more. Henry Ford is considered to not only be a car manufacturer, but a change maker who changed the fate of the automobile industry.

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What Is Meant By Automobile Insurance Standard Coverage?

Automobile insurance standard coverage is the basic amount of insurance coverage that is required by law in order for an individual to legally operate a motorized vehicle. You can simply it even further with the blanket statement as being the mandatory amount of auto insurance coverage a driver must possess.

The most important part of anyone's car insurance policy is the liability coverage. This coverage protects the consumer against the cost of damages and injury that is a direct result of that same consumer if they are the cause of a vehicular accident. For instance if you're driving down the road and accidentally run into another person's car this insurance coverage will pay for the damages that result due to the accident.

The liability coverage is further broken down into two subsections. The first is bodily injury liability. This covers and personal injury inflicted by yourself upon others during a car accident. The second subsection is property damage liability. As you may have guessed this is your insurance protection against any damage you cause to another individuals property, usually their car.

Although coverage amounts can vary it is generally suggested that a good baseline of automobile insurance standard coverage should be 100/300/100. This can be read as $ 100,000 worth of bodily injury caused to another person, $ 300,000 towards bodily injuries for everyone involved and $ 100,000 for property damage. With rising medical costs and outrageous car prices this would be the absolute minimum insurance protection I would personally carry in my automobile insurance standard coverage. However, each state is different and you will need to check to see what their car insurance laws constitute as a minimum coverage amount.

If you are in a financial crunch and need a way to save money on your insurance policy try to avoid retaining only the minimum amount of coverage required by your state. Instead try raising your deductible amount (the amount you pay first in the event of an accident before your insurance company kicks in with its payment). You will find that by raising the amount $ 500 or $ 750 will significantly lower the monthly costs of your automobile insurance standard coverage.

Two other policies that exist include the medical payments insurance which provides for the immediate treatment of injuries sustained during an auto accident. Anyone riding in your vehicle to include yourself is covered, regardless of who is at fault for the accident. The second policy is commonly known as PIP or personal injury protection, is similar to medical payments coverage, but usually provides broader coverage. Many PIP policies provide compensation for lost wages, funeral expenses, and pain and suffering. Again you will need to check with your state insurance laws for further clarification if you are required to have this additional coverage.

Finally as a safety measure against law breaking individuals who illegally drive without insurance there is uninsured motorist insurance when the other driver has no liability coverage and underinsured motorist coverage which pays for the cost of your injuries that exceed the other driver's coverage maximum. As before with the PIP coverage you will need to make sure whether or not your particular state requires these forms of coverage as part of their automobile insurance standard coverage.

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4 Most Common Extraordinary Automobile Accidents Circumstances

In some situations, auto accident litigation may be a relatively simple type of case. But it can become much more complicated in cases involving substantial injuries with questionable insurance coverage limits on the other vehicle. The following article will discuss 4 main extraordinary circumstances that can often add complex issues to an already emotional and physically painful time following an accident. However, understanding these 4 situations can help make the aftermath of an auto accident and its subsequent injuries a much smoother experience.

Leased Cars

Not only is the operator of the at-fault vehicle responsible to anyone injured in an auto accident, but the owner of the vehicle is also responsible. The owner is responsible for the negligence of the operator, when that operation occurs with the permission of the owner. This is extremely important when the vehicle at fault is leased.

These days, there are a great number of cars and trucks on the road being driven on a lease basis. Because of this, it may be critical to go beyond the name on the registration to find out the exact owner of the vehicle. It is a fact that when a vehicle is leased from a big car company, the registration will simply bear the name of the user of the vehicle, the lessee. However, the actual owner of the vehicle, the lessor, is usually a major corporation with unlimited insurance coverage.

It is unfortunate for the severely injured victim when, as happens many times, the at-fault vehicle’s actual ownership is never discovered and the additional insurance is never disclosed.

Business Vehicles

Though it is common for companies to put their names in bold letters on their business vehicles, it is not always the case. When accidents occur, many times there is no indication that the vehicle was being used for business purposes. In fact, it may appear to the casual observer that the vehicle was not being used for business at the time. The only way to find out if the vehicle was being used for business is doing an in-depth investigation.

If a vehicle is being operated by an employee during the course of his or her employment, then the employer may be “vicariously responsible” for the negligence of their employee in operating that vehicle. It is very possible that the employer has additional liability coverage far exceeding that of the driver. An “excess” insurance policy may also exist.

Defects

One of the causes of an auto accident may be a highway defect, such as improper design, maintenance, construction, signage, or lighting. Liability may also be based on improper striping on the road’s passing lanes, a hill that impairs driver visibility, a sharp obstruction or problem with the roadway that obstructs drivers’ vision. Trees and utility poles can also cause problems when planted or erected too close to the roadway.

The Seatbelt Defense

While seatbelts and airbags provide an important function and do prevent serious injuries or death to people involved in accidents, they are not guarantees that you will not be killed or injured in a serious accident.

Seatbelts and airbags can fail or cause injury in and of themselves. But yet, the seatbelt defense, often used by attorneys defending at-fault drivers, seeks to establish that some, or all, of the plaintiff’s injuries were caused by the failure to wear a seatbelt.

All in all, it is essential that a routine investigation be done, in any case involving a vehicular accident. Police records must be obtained, witnesses interviewed and photographs taken immediately of the accident scene and damage to the vehicles. Prompt contact must be made with the insurance company of the negligent driver to learn of the available coverage limits and attempt to find out additional information from the adjuster regarding possible other areas for coverage. Many times, the at-fault driver’s insurance company adjuster will attempt to record a statement from the victim, without advice of counsel. This should never be permitted.

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The Diversity of RC Vehicles For Your Collection

There are perhaps two categories of rc vehicle: toy rc vehicles and hobby rc vehicles. Both are simply scale models of 'real-world' vehicles that are either electrically powered (EP) or nitro gas powered (NP / NGP). Most of the rc toy variety is EP, fueled by a rechargeable battery pack, whereas the rc hobby range can be EP or NP. Both categories are motorized and most are operated remotely using a wireless, hand held controller.

Toy RC Vehicles
These usually come readily assembled and are therefore 'ready to run' (RTR), straight out of the box. They are manufactured in large quantities and available in many retail outlets, both in store and online. However, they do not have the same appeal as hobby vehicles since they lack the obvious functionality and customization that the hobby vehicles possess. Nonetheless, they are still a great introduction for children and budding rc enthusiasts that are just starting out on their exciting rc hobby journey.

Hobby RC Vehicles
Hobby-grade vehicles are those usually bought at hobby retailers. These automobiles can be acquired as RTR, to completely disassembled kits requiring construction time and effort, before they are deployable. They are often upgradeable, customizable, have many more features than toy-grade, and are used in professional RC racing and other competitions. This range may be electric or nitro-powered.

The RC Vehicle Range
There is an rc automobile equivalent of most, if not all, 'real life / real world' vehicles. The following lists provide a summary of their diversity:

Land rc automobile include rc street cars and rc racers, buggies, jeeps and trucks, tanks, motorbikes and even rc robotics such as robo-dogs and robo-aliens.

Aquatic rc automobile include sailing boats, racing boats, cruise liners and other ships, hovercraft (that also run on land) and even submarines.

Aerial rc automobile include helicopters, alien craft / UFOs and even motorized balloons.

Focussing on the land-based rc automobiles now, here is a rundown of maybe the five 'neatest' rc cars on the market today, according to a review courtesy of bit-tech.

Fastest RC Car On The Planet (source: CastleCreations)
Schumacher Mi3.5 Streamliner – the world record is credited to Nic Case, with his rc vehicle exceeding a blistering 160 miles per hour. This surpassed Nic's previous world record, won three years ago with his 'Orange Bullet' rc car. No surprises then, to read that Nic has set himself a challenge to break the 200 miles per hour barrier.

Amphibious RC Tank (source: ThinkGeek)
This rc vehicle is impressive. It is an all-terrain craft that runs on Wheels over the most challenging of landscapes, or with its wheels off the ground when in amphibious mode.

Wall Climbing RC Car (source: AirHogs)
A lightweight and small rc vehicle, which belies its form with function, that is, its amazing ability to behave like Spiderman (the Spidercar?). It is akin to an anti-hovercraft in its modus operandus, in that it grips itself to walls and ceilings with its fan-driven suction power. Even the accompanying high decibel level still does not detract from its coolness factor.

Hydro Car (source: ScienceMuseumShop)
An rc vehicle that is hydrogen-powered, oh yes! Think back to your science classes at school, and you may remember that you can split water into its constituent elements, hydrogen and oxygen. The Hydro Car tops up its energy levels from this essential planetary resource (water) in a 'green' refueling station that is powered by the sun. There is still a downside – unfortunately, you cannot discard your regular batteries because they are still necessary for powering the remote!

Internet Controlled Car (Source: JBProjects)
This rc vehicle is Wi-Fi powered! It is kitted out with a Panasonic web camera that sends its signal to a remote laptop computer sporting a Linksys WRT54GL Router. The operating range is a satisfying 500 meters and more. The rc car can be of your own choosing, but the car featured is a very cheap buggy that was rebuilt specially for the desired functionality. However, the designer of the Internet Controlled Car has provided stepwise guidelines on its construction, allowing you the satisfaction of fashioning one yourself.

To wrap up, you can see that rc vehicles are always evolving and their range expanding. With such a diverse selection to choose from nowadays, you will never run out of rc vehicles to add to your collection.

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Motivation Defined

Motivation is a call to action. Motivation inspires change, movement, and focus; it is what makes the world turn. The Art of Motivation is a must for Master Persuaders. How do you motivate in such a way that prompts people to take the actions you want them to take? How can you plant the seeds to encourage motivation? As a persuader, one of the keys to success is to motivate yourself and others. We have all had days when we did not feel like doing the things we knew we needed to do. It is useless to persuade and have others agree with your point of view if you can’t get them to take action.

Martin Luther King said, “If a man hasn’t discovered something that he will die for, he isn’t fit to live.” In order to successfully motivate someone – or, to get him or her to internalize the motivation – you have to create a deep hunger or thirst. It has been said you can bring a horse to water, but you can’t make him drink. That’s true. But let it be known that you can give that horse salt and create such a thirst that the horse must have water. As a master motivator, you are giving salt to your prospects. You are striving to create such a thirst in other people that they can’t wait to act.

You will find people tend to get motivated for the short term, lose steam, and then fall back into the rut they were trying to pull themselves out of in the first place. As a persuader and motivator, you have to understand what pulls people from action to inaction. What causes us to lose excitement, vision, and energy? When you notice your prospects are losing their motivation, these are the reasons why:

  • The desire to gain
  • The desire to avoid loss
  • To make money
  • To avoid criticism
  • To save time
  • To avoid loss of possessions
  • To avoid effort
  • To avoid physical pain
  • To achieve comfort
  • To avoid loss of reputation
  • To have health
  • To avoid loss of money
  • To be popular
  • To avoid trouble
  • The desire to gain (cont,)
  • To experience pleasure
  • To be clean
  • To be praised
  • To be in style
  • To gratify curiosity
  • To satisfy an appetite
  • To have beautiful possessions
  • To be an individual
  • To emulate others
  • To take advantage of opportunities

You can’t change a habit unless you replace it with another one. The same is true for motivation. You can’t change how someone is motivated unless you replace the undesirable motivation with a desirable one. You have to understand whether your prospect’s motivation is a positive motivation or a destructive motivation.

Once inspiration is identified, build on that inspiration until you create an intense hunger. This means that you get your prospects to take responsibility for their own lives. Get them to set new goals or review their existing goals and their reasons for setting them. Another way to stoke the fires is to find somebody who shares that same passion.

Since Maslow introduced the concept of needs, countless motivational theories have been brought to light. Avid McClelland proposed that we learn three things that motivate us as we go through life: achievement, affiliation, and power. John C. Mowen used the three “R’s” of motivation: reward, recognition, and reinforcement. Bob Stone suggested that people respond either to “gain something they do not have or to avoid losing something they now possess.” He created this list of basic human wants to explain his theory. In his book The Hidden Persuaders, Vance Packard identifies eight hidden needs that motivate people into action:

1. Need for emotional security: We live in uncertain times. Terrorism lurks, the happenings on Wall Street are shaky, we are surrounded by illness and disease, etc. We need safety, comfort, and stability in our lives.

2. Need to feel self-worth: Much of today’s society is cold, competitive, and uncaring. We want to experience a place in the world where we know we’ve made a difference.

3. Need for ego-gratification: We want recognition and praise. We all want to feel important.

4. Need for creativity: We feel more satisfaction and fulfillment when we can work creatively through hobbies, sports, and other forms of recreation.

5. Need for love foci: Life is richer when we have someone to share our love with, for example friends, children, grandchildren, a spouse, or pets.

6. Need for control: We need to feel a sense that we have some control or power over our environment, our surroundings, or our conditions.

7. Need to belong: We want to feel that we are an integral part of the world and that we are important to people whom we love, respect, or admire.

8. Need for immortality: We fear dying or being forgotten. We buy life insurance because we want to leave something behind.

Motivation starts with vision. People need to believe they will succeed in what you are motivating them to do. No one likes to lose. No one wants to lose. No one wants to be associated with losers. So, instill in your listener or audience a vision of winning. Thinking we can win and seeing the win in our mind’s eye stirs our internal motivation. When we help others think of past victories or instill the vision of victory in them, we can motivate them to take action. Olympic coach Charles Garfield states that the highest performers are driven by a sense of mission.

Learning how to persuade and influence will make the difference between hoping for a better income and having a better income. Beware of the common mistakes presenters and persuaders commit that cause them to lose the deal.

Master Persuaders present a winning package. When people sense victory or accomplishment, they will make sacrifices and become energized. They will find a way to succeed and win. If they sense defeat, they’ll exert little personal effort, come up with lots of excuses, and exhibit lack of energy for the cause.

Motivation is true art. When you understand the Laws of Persuasion not only will you be able to motivate, but you will also have earned the right to motivate.

Conclusion

Persuasion is the missing puzzle piece that will crack the code to dramatically increase your income, improve your relationships, and help you get what you want, when you want, and win friends for life. Ask yourself how much money and income you have lost because of your inability to persuade and influence. Think about it. Sure you’ve seen some success, but think of the times you couldn’t get it done. Has there ever been a time when you did not get your point across? Were you unable to convince someone to do something? Have you reached your full potential? Are you able to motivate yourself and others to achieve more and accomplish their goals? What about your relationships? Imagine being able to overcome objections before they happen, know what your prospect is thinking and feeling, feel more confident in your ability to persuade. Professional success, personal happiness, leadership potential, and income depend on the ability to persuade, influence, and motivate others.

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