Are you interested in starting a used car dealership business online? If YES, here is a complete guide to starting a used car dealership with NO money and no experience.
Okay, so we have provided you an in-depth sample used car dealership business plan template. We also took it further by analyzing and drafting a sample used car dealership marketing plan backed up by actionable guerrilla marketing ideas for used car dealerships. In this article, we will be considering all the requirements for starting an used car dealership. So put on your entrepreneurial hat and let’s proceed.
Why Start a Used Car Dealership?
I guess you would have imagined why most people who purchase cars for the first time usually purchase used car? The answer is simple and straightforward. This is so because the prices of brand new cars are usually beyond the reach of the average person who wants to own a car hence the booming market for used cars in the United States of America and of course in most parts of the world especially in developing countries where they are not known for car manufacturing.
Used car dealership business as the time implies is all about selling used cars to willing buyers. Aside from the fact that the owners of used car dealership shops are known for selling used cars, they also go out of their way to source for sellers who wants to sell their cars. They buy used car at a favorable price and then re – sell at a good price that guarantees profits for them. In a nutshell, they are in the business of buying and selling used cars.
What Does It Take to Start a Used Car Dealership Successfully?
One thing about used car dealership business just like consignment business, you can start this business without money and still make profits. This is so because you can convince people who are looking towards selling their used cars to drop it with while you help them source for buyers and enter an agreement to make a certain percentage from the deal once you are able to sell – off the car.
The truth is that if you are trustworthy and dependable, it will be easier for people to trust you with their used car and wait while you help them sell. If the deal pulls out, it will be a win – win for both parties. You will make your profits and the owner of the car will make money off his or her used car. In other words you would be automatically helping them get rid of the used car they do not want and in turn make your profit.
No doubt starting a used car dealership business can be interesting at the same time rewarding especially if you situate your car dealership shop in strategic locations where you can easily attract people with low income who can’t afford brand new cars. The fact that fairly used cars are highly affordable and far cheaper than brand new cars makes used car dealership business a thriving and profitable business.
One good thing about starting a used car dealership business is that if you are diligent enough and if you have good business / marketing strategies, you can build the business from just one outlet to numerous outlets across different cities in the United States of America.
Lastly, starting a used car dealership business just like starting any other business might not be entirely easy to start, but one thing is certain, it is a straight – forward business that can generate huge and steady profits if well positioned and properly managed. People often think that starting this type of business does not require any professional skills; in as much as it is true, you would still need a good knowledge of automobiles, you would still need good business skills, bargaining skills and of course customer services skills if indeed you want to build a profitable business.
Starting a Used Car Dealership Business With No Money – A Complete Guide
- Industry Overview
Recent statistics has it that the total annual revenue for used car dealership in the United States of America is US$370 billion with an annual growth of 2.4 percent. No doubt, with massive annual sales of nearly US$370 billion, one can confidently say that the used vehicle dealership industry represents almost half of the United States’ auto retail market and it is of course the largest retail segment of the U.S. economy.
- Interesting Statistics About the Used Car Dealership Industry
For instance, in 2005, approximately 44 million used cars were sold in the United States, which is more than double that of the nearly 17 million new cars sold. The average price of used cars in the United States is $8,786. The industry has 127,940 registered car dealership businesses that employ a total of 237,788 people.
In the United States used car dealership market, the top four major players account for less than 20.0% of industry revenue in 2015, with the biggest used car dealer, CarMax dealership, generating about 12.6% of revenue. Recent findings also indicated that the industry concentration has increased over the last five years prior to 2015.
The automotive industry with reference to used cars dealership is indeed flourishing simply because more and more consumers are becoming aware of the need to cut unnecessary spending as it relates to purchasing cars, purchasing insurance policies and also the need to sell used cars as fast as possible.
Some of the factors and incentives that encourages aspiring entrepreneurs to venture into opening a used car dealership shop is the fact that the required amount needed to start the business especially when you choose to start a small shop is not on the high side compared to other small scale businesses.
That makes it easier for loads of entrepreneur who are interested in the business to come into the industry at any time they so desire; the entry barriers are quite affordable and any serious minded entrepreneur can comfortably raise the start – up capital without collecting loans from the bank especially if they can convince owners of used cars who are willing to sell their cars to drop the cars with them while they source for buyers.
Starting a Used Car Dealership Business – Market Feasibility Research
- Demographics and Psychographics
The demographic and psychographic composition of used car dealership is indeed large. This is so because if you conduct a quick survey, you will realize that the numbers of people who can afford brand new cars are far less than the numbers of people who can’t. Although there are people who can afford brand new cars that still settle for used cars for obvious reasons.
By and large used cars dealership business attracts clients that cuts across different economic class. It is in two phase, either you are selling your used cars or your buying used cars. So if you are mapping out marketing strategies for your used car dealership business, you should not just restrict it to only the middle class and the lower class in the society, but also the upper class.
List of Niche ideas Within the Car Dealership That You Can Specialize in
These are some of the niche ideas within the used car dealership industry that an entrepreneur who is looking towards starting the business can specialize in;
- Bricks and Mortars Used Cars Dealership Shop
- Online Used Cars Dealership Shop
- Used Luxury Cars Dealership Business
- Multi – brand and multi – maker car dealers
The Level of Competition in the Automobile Sales Industry
The fact that an entrepreneur without start – up capital can actually stand as a middle man in the sale of used cars makes the industry to be open to all and sundry hence the stiffer competition in the industry.
You can run this type of business without a physical shop; online shop will cut it for you. As a matter of fact, online used car dealership shops are more thriving than bricks and mortars used car dealership. This is so because it is easier for customers to review prices and model of cars online before eventually making their purchase.
The truth is that, despite the level of competition in the used car dealership industry, entrepreneurs who are running the business are still making their profits and some of them generate as high as 30 percent turnover rate especially those that are well positioned and over time have been able to secure steady sources for neatly used cars.
List of Well – Known Brands in the Automobile Sales Industry
These are the list of some of the well – known used car dealership shops in the United States of America;
- CarMax Dealership
- AutoNation Inc.
- Penske Automotive Group Inc.
- Sonic Automotive Inc.
- Group 1 Automotive Inc.
- Van Tuyl Group
- Hendrick Automotive Group
- Asbury Automotive Group
- Staluppi Auto Group
- Lithia Motors Inc.
- Larry H. Miller Group of Cos.
- Ken Garff Automotive Group
- Greenway Automotive
- David Wilson Automotive Group
- Suburban Collection
- Jim Koons Automotive Cos.
- Potamkin Automotive Group Inc.
- Bob Rohrman Auto Group
- RLJ-McLarty-Landers Automotive Holdings
- Braman Dealerships
- Open Road Auto Group
- Keyes Automotive Group
- West-Herr Automotive Group Inc.
- Ourisman Automotive Group
Starting a used car dealership business just like starting any other business requires that you conduct your feasibility studies and market survey so as to get your economic analysis right. As a matter of fact, you just have to get your economic analysis right if your intention of building the business is to generate profits, grow the business and perhaps expand the business beyond one location to other locations within the United States and other cities in the world.
When conducting economic analysis for your used car dealership business, you have to critically examine these key factors; place, product, pricing, and promotion. As a matter of fact, you would have to continue to review these key factors at regular interval while running your used cars dealership business.
Is the Car Dealership Business Worth Starting from Scratch or is Buying a Franchise Better?
There is no hard and fast rule when it comes to choosing how you intend starting a business. Basically, you should be guided by your overall business vision and mission statement.
If you are looking towards starting a used car dealership business, you would have to start from the very scratch simple because you can hardly get a franchise of used car dealership shop to buy. It is a business that is open to all and sundry.
Besides starting a used car dealership business from the scratch is less stressful when compared to other small scale businesses which usually require detailed groundwork before launching the business. With used car dealership business, you should just try as much as possible to secure a shop that is close to a major road and then leverage on every marketing tools within your disposal especially the internet when it comes to marketing your used cars.
Although starting a business from the very scratch might not be easy initially, but one thing is certain, if you are diligent and you apply the right business strategies per time, it won’t be too long before your business brand becomes recognized not only in your city or state, but throughout the United States of America.
Possible Threats and Challenges You Will Face When Starting a Car Dealership business
The threats and challenges that is likely going to confront a start – up used cars dealership shop business is the fact that they will be competing with already established used cars dealership shops and also other potential used cars dealership shops that are likely going to be opened within the same location as yours. You would have to go all out to compete for the available market in the location you choose to set – up your own used cars dealership shop. Besides cars are not like other stuffs that people buy every other day or once in a month.
Other threats and challenges that you are likely going to face when you start your used cars dealership business are economic downturns which usually affect purchasing powers and also unfavorable government policies. For instance, if you are into exporting used cars to other countries as demanded by your clients and the government of one of the countries you usually export used cars to place a ban on such trade, it will definitely affect your business negatively.
Starting a Used Car Dealership Business – Legal Aspect
- The Best Legal Entity to Use for a Car Dealership Business
When it comes to choosing a legal entity for your business, what you want and the type of business model that you intend building should be some of the factors that should guide your decision. Generally, you have the options of either choosing a limited liability company which is commonly called an LLC, general partnership or even a sole proprietorship for a used car dealership business.
Ordinarily, sole proprietorship should have been the ideal business structure for a used car dealership business especially if you are just starting out with a moderate start – up capital and a small sales garage in a street corner. But people prefer limited liability Company for obvious reasons.
As a matter of fact, if your intention is to open several outlets of your used car dealership shop in the different cities and to also sell used cars to clients in other parts of the world, then choosing sole proprietor is not an option for you; Limited Liability Company, LLC or general partnership will cut it for you.
For example, setting up an LLC protects you from personal liability. If anything goes wrong in the business, it is only the money that you invested into the limited liability company that will be at risk. It is not so for sole proprietorships and general partnerships. Limited liability companies are simpler and more flexible to operate and you don’t need a board of directors, shareholder meetings and other managerial formalities to run this model of business entity.
Some Catchy Business Name ideas Suitable for a Car Dealership Business
When it comes to choosing a name for your business, it is important that you choose a name that clearly indicates the type of business you are into, it will make it easier for people to identify with your brand name.
These are some catchy business name ideas that you can choose from if you are looking towards starting your own used cars dealership business.
- Solonzo Car Dealership Group, Inc.
- Neatly Used Cars Dealership Company
- Ambassadors Auto Company, LLC
- Cars for All Dealership Shop.
- Mack50 and Sons Garage, Inc.
- American Brand Used Cars Dealership, LLC
- One Stop Autos, LLC
- Cincinnati Cars Garage Company
- Lakeside Exotic Car Dealership Company
The Best Insurance Needed for a Car Dealership Business
When it comes to starting a car dealership business, then you don’t have any options order than to purchase the right insurance cover or else you might run into a challenge that may drain your finance. Besides, if you choose to start any business in the United States of America, you will be expected to purchase at least some of the basic insurance policy covers as it relates to the industry you are in.
These are some of the insurance policy cover that you should consider purchasing if you want to start your own used car dealership business in the United States of America and also in most parts of the world;
- General insurance
- Health insurance
- Liability insurance
- Workers compensation
- Payment protection insurance
- Overhead expense disability insurance
- Business owner’s policy group insurance
- Risk Insurance
- Credit insurance
- Deposit insurance
Intellectual Property Protection and Trademark
If your idea of starting a used car dealership business is not just to operate in street corner but to compete on the international market by exporting used cars to other countries or importing used cars from other countries, then you should consider filing for intellectual property protection / trademark. It will become handy and very useful as your used car dealership brand begins to expand far beyond your reach. The truth is that even if you are starting your own used car dealership business from the scratch, you can still decide to secure your brand name from an intellectual property clearinghouse if you so desire.
No doubt, it is quite challenging to build your used car dealership business brand from the very scratch, and then watch the brand name slip off your hands.
It is even very important to protect your company’s logo and other documents or software that is unique to your used car dealership business. If you want to register your trademark or intellectually property, you are expected to begin the process by filing an application with the USPTO. The final approval of your trademark is subjected to the review of attorneys as required by USPTO
- Is Professional Certification Needed to Start a Car Dealership
From a general perspective, you do not have any need for professional certification before you can be allowed to legally operate your own used car dealership business in the United States of America, Canada, and Australia and even in Europe. It is a business that is open to both the schooled and the unschooled; both the skilled and the unskilled hence there is no need for a special professional certification. Your business license and other business document is all you would need.
List of Legal Documents You Need to Run a Car Dealership Business
The legal documents required for running a consignment / resale business is perhaps the basic legal requirements need to run any business in the United States of America simply because of the nature of the business.
These are some of the basic legal document requirements needed before you can successfully start and run your own used car dealership business;
- Business and liability insurance
- Tax Payer’s ID
- Fire certificate
- Certificate of Incorporation
- Business License
- Business Plan
- Non – disclosure Agreement
- Employment Agreement (offer letters)
- Employee’s Handbook (optional)
- Operating Agreement for LLCs
- Facility permit / license
- Franchise or Trademark License
- Insurance Policy
- Contract documents (for customers, clearing / shipping partners)
- Apostille (for those who intend operating beyond the United States of America)
Writing a Business Plan for your Car Dealership
It is important to clearly state that no matter the type of business or size of business you intend starting, it is always a wise decision to first and foremost write a good business plan before taking any action. The truth is that, in order to successfully run a standard used car dealership business, you would need to have a good business plan in place.
Simply put, a business plan is the blue print that is needed to successfully run a business; with a workable business plan in place, you will reduce the trial and error approach of doing business. You will be able to manage your business with purpose and perhaps precisions; you will know what to do per time and how to handle challenges and growth.
So if you want to start your own used car dealership business, you are required to write a detailed business plan that can pass reality test when it is subjected to it; you should work with the facts, figures and other indices in the industry as it applies to the location you intend opening your used car dealership shop.
The whole idea of writing a business plan is not just for the sake of having a business document in place; but a detail guide on how to effectively run your business from the scratch. Your business plan should outline and cover strategies on how you intend to manage your used car dealership business. The rule of thumb in writing a business plan is to try as much as possible to be realistic and never to over project when putting figures on sales, income and profits et al. As a matter of fact, it is safer to underestimate when writing a business plan so that you won’t be so disappointed when reality sets in.
These are the key areas that should be covered in your business plan;
Executive summary and Company’s descriptions: you are expected to write about the concept of your business, descriptions of your company, your company’s vision statement, mission statement and where your company will be located and also if you intend exporting used cars to other countries or opening outlets in different cities in the United States of America or importing used cars from other parts of the world.
Other key components that should not be missing in your consignment / resale business plan are product offering, SWOT analysis, competitive analysis, marketing and sales analysis / strategies, target market, market goals, pricing, costing and financial projection, publicity and advertising strategy, expansion and growth strategies, budget and start – up capital generation et al.
Detailed Cost Analysis of Starting a Used Car Dealership Business
Just like any other business, when it comes to starting a used car dealership business, loads of factors influences the amount that will be required to successful launch the business. Factors like the location you intend starting the business, the type of used cars you want to specialize in selling, the size of the used car dealership shop you want to open, and of course the state of the economy as at when you intend starting the business.
Irrespective of where you intend starting your used car dealership business, you would be required to fulfill most of the items listed below;
- The Total Fee for Registering the Business in the United States of America – $750.
- Legal expenses for obtaining licenses and permits as well as the accounting services totaling – $1,300.
- Marketing promotion expenses for the grand opening of your used car dealership shop in the amount of $3,500 and as well as flyer printing (2,000 flyers at $0.04 per copy) for the total amount of $3,580.
- Cost for hiring Business Consultant (if you intend carrying out detailed market survey and feasibility studies) – $2,500 (estimated figure)
- Insurance (general liability, workers’ compensation and property casualty et al) coverage at a total premium – $3,400.
- Cost for payment of rent for a shop / garage for 12 month at $1.76 per square feet in the total amount of – $52,800.
- Cost for Shop / garage remodeling – $5,000.
- Other start-up expenses including stationery ($500) and phone and utility deposits – ($2,500).
- Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $10,000
- The cost for Start-up inventory (purchase of first set of used cars) – $100,000
- Cost for shop equipment (cash register, security, ventilation, signage) – $13,750
- The cost for the purchase of furniture and gadgets (Computers, Printers, Telephone, TVs, tables and chairs et al) – $4,000.
- The cost of Launching a Website – $600 (for online consignment stores)
- The cost for an opening party – $2,000 (optional)
- Additional Expenditure $1,000
Going by the report from the market research and feasibility studies conducted, you would need an estimate of about $170,000 or less to successfully set up a small scale used car dealership business in the United States of America.
If you want to start a medium scale used car dealership business in the United States of America, you would need nothing less than a million dollars ($1m). And if your intention is to start a large scale dealership business in the United States of America, then you should look towards generating over $2.5m as your start – up capital.
- Financing Your Used Car Dealership Business
One good thing about used car dealership business is that you can start the business with minimal cash. All you need to do is to get used cars from family members; friends and neighbors with the agreement of helping them sell it and pay them the agreed amount while you make your own cut.
But averagely, you would need a reasonable startup capital to launch a standard used car dealership business and trust me it can be challenging raising capital to launch a business idea. Your idea must be workable and promising for you to be able to secure finance from financial institutions or from angel investors.
The first thing to put in place before sourcing for start – up capital for your business is to draft a detailed business plan. With a good business plan, you can easily convince investors to invest in your business. The truth is that no bank can give you a loan if you don’t have a good and workable business plan. Besides, investors will not take you seriously if you don’t have a business plan on ground before launching out to source for start – up capital.
There are several options when it comes to raising money to finance a start – up business. Some of the options are;
- Raising money from personal savings and sale of personal stocks
- Raising money from investors and business partners
- Applying for loan from bank
- Pitching your business idea and applying for business grants and seed funding from donor organizations and angel investors
- Sourcing for soft loans from family members and friends.
Choosing an Ideal Location for Your Used Car Dealership Shop
In starting a used car dealership business, it is very important to be strategic with the location you choose to pitch your business tent. It is important to note that used cars dealership shops may likely not thrive in highbrow areas of the society, but rather in the lower class / middle class suburbs of the city.
So it is needful that you ensure you locate your used car dealership shop where the middle class and the lower class of the society live. This is because besides getting loads of people that will patronize you in this area, you would also get facility at a very cheaper rate compared to what you might get in high class area.
The fact that there different sizes of used car dealership shops scattered across the United States of America does not in any way mean that used cars dealership business can thrive in every location. Before choosing a location for your used cars dealership shop, ensure that you conduct a thorough feasibility studies and market survey.
The possibility of you coming across a used car dealership shop that just closed shop in the location you want to open yours can’t be ruled out. This is why it is very important to gather as much facts and figures before choosing a location to set – up your used car dealership business.
These are some of the factors that you should consider before choosing a location for your used car dealership shop;
- The demography of the location
- The purchasing power of the residence of the location
- Accessibility of the location
- The numbers of used car dealership shops in the location
- The local laws and regulations in the community / state
- Traffic, parking and security et al
Starting a Used Car Dealership Business – Technical & Manpower Details
Normally, there are no technical requirements for starting a used car dealership business aside from the fact that you might want to hire car technicians either on a full – time basis or part – time basis to help out in fixing minor repair works in cars so as to present them in good condition. You might also want to buy a CRM software application to help you manage your customer base; to inform them when you have new deliveries of used cars and to keep in touch with them.
As regard renting or leasing a shop, your financial capacity should influence your choice. If you have the required finance, it is to your advantage to acquire a property or lease a facility to be used for your used car dealership shop; it will give you the freedom to design the facility the way you want to it to be. But if you are low on cash, then you don’t have any option other than to rent a facility.
Typically, an ideal used car dealership shop would have the owner, an accountant / cashier, auto – mechanic and one or more sales girls or sales boys. On the average, you would need about 5 to 10 employees to operate a standard used cars dealership shop in the United States of America
The Business Process Involved in Running a Used Car Dealership Business
The business process of operating used car dealership business revolves around sourcing for sellers who want to sell their used cars, submitting your bid and then acquiring the used cars if you are able to price right.
After the purchase of the used cars, it now becomes your responsibility to ensure that the car is in good shape before displaying them for sale in your garage. In most cases, your auto – mechanic would have to fix one or more things and then passed the car through car wash department to be thoroughly washed. The truth is that, it is easier to sell used cars if they pretty neat and in good condition.
Aside from that, on a daily basis, the used cars in your garage are supposed to be cleaned / washed and then employ every means of marketing the cars whether on offline or online platforms or both.
Starting a Used Car Dealership Business – The Marketing Plan
- Marketing ideas and strategies for a car dealership business
Running a business requires that you to be proactive when it comes to marketing your goods or services. If you choose to run a used car dealership business, you must go all out to employ strategies that will help you attract customers or else you will likely struggle with the business.
These are some of the marketing ideas and strategies that you can adopt for your used car dealership business;
- Direct Marketing
- Sponsor TV and Radio Programs
- Erect your Billboards in Strategic locations around the city
- Making use of sales Agents and sales reps
- Online Marketing (via your official website / online store, social media platforms and blog et al)
- Referral Marketing
- Engage in road show within the community where your used car dealership is located.
- List your used car dealership business in local directory / yellow pages
Factors That Will Help You Get the Right Product Pricing for a Car Dealership Business
One of the major factors that will help you get the right product pricing for your used cars dealership business is your bargaining power. The truth is that if you are good with bargaining, you will be able to get used cars at rock – bottom prices and then resale at good prices that will guarantee you make good profits. Besides some people would ordinarily want to sell their used cars at give – ever prices if they lack parking space for it and when they able to get ready buyers. This is the reason why the average used car dealership business owner can make as high as 25 percent turnover rate.
Another factor that can aid you to get the right pricing for your used cars is to ensure that you dealer in neatly used cars, cars that you won’t have to spend much to put them in good shape. You can as try as much as possible to cut your operational cost to the barest minimum if indeed you want to maximize profits in your used cars dealership business.
Possible Competitive Strategies for Winning your Competitors in Car Dealership Industry
When it comes to competing favorable in the used cars dealership industry, you would have to explore ways of getting neatly used cars at giveaway prices. One thing is certain, if you operate the biggest used cars dealership shop in your location and you deal in various brands of used cars et al, you are likely going to attract more customers than your competitions.
Another possible competitive strategy that you should adopt when it comes to winning your competitors in this particular industry is to ensure that you deliver excellent customer services at all times. The truth is that, people will always go back to places where they are treated like kings and queens. You can as well maximize CRM software application to effectively manage your clientele base.
Possible Ways to Increase Customer Retention for a Car Dealership Business
No doubt one of the strategies that you would need in order to generate repeated sales from your customers and also to retain them is to ensure that the you sale neatly used second hand cars at affordable prices and also ensure you adopt a win – win approach when it comes to purchasing used cars from your customers. You should also ensure that your customer service delivery is always on point.
The truth is that if your customers find it difficult to get quality used cars from your shop, you are likely going to struggle to get them to come back; people usually go to places where they are sure of getting value for their money. You can also make uses of promotional ideas such as loyalty schemes, direct marketing, and give them the opportunity to buy cars from you and pay by installment.
Lastly, ensure that you offer your customers’ incentives if you want to retain them, continue to generate repeated sales from them and also to attract new customers.
Creating Brand Awareness and Corporate Identity for your Car Dealership Business
Used cars dealership business just like any other business in the retailing industry, requires steady promotion to get people to buy into the brand. Your brand has to do with the way people perceive you to be which is why you should be deliberate when it comes to communicating and promoting your brand in the market place.
In promoting your brand and corporate identity, you should leverage on both print and electronic media. As a matter of fact, it is cost effective to use social media platforms to promote your brands, besides it is pretty much effective.
Here are the platforms you can leverage on to create brand awareness of your used cars dealership business and to promote your corporate identity in the market place;
- Place adverts on local TV stations, Radio Stations and Newspapers / Magazines
- Run your own special TV program
- Sponsor relevant community programs
- Leverage on the internet and social media platforms like; Instagram, Facebook , Badoo, YouTube, Twitter et al
- Install your Bill Boards on strategic locations
- Send out introductory letters to households and corporate organizations in and around your location
- Encourage the use of word of mouth especially from loyal customers
- Ensure that all your employees wear your branded shirts during work hours
Finding a Suppliers/Distribution Network for your Car Dealership
The whole idea of successfully running a profitable used cars dealership business is to get steady supply of neatly used cars. In essence, one of the first business strategies that you should put in place explore means of getting supply of various brand of neatly used cars.
If you have a rich network, you can easily come across people who want to sell their used cars, you can as well place adverts on available advertising platforms to inform people that you buy second hand cars. In recent time, the internet has become the busiest place where people sell and buy second hand items, so you should make plans to leverage on the internet when it comes to purchasing used cars that can be displayed and of course sold in your car dealership shop.
Even if you run a brick and mortar kind of used cars dealership business, you can still go ahead to have an online used car dealership shop. It won’t cost you much to set – up an online store except for the logistics of shipping et al. Besides if you have an online used car dealership shop, your target market won’t just be restricted to the location of your shop but the whole internet community.
Tips for Running a Car Dealership Business Successfully
Running a used car dealership business involves profiling the cars that are up for sale, ensure that the cars are in top shape in case a potential buyer comes in and wants to test – drive the car, and also ensure that the cars are well arranged to look attractive.
In used cars dealership business just like in any other retailing business, after the day’s sales, the books will be balanced, the shop facility should be cleaned and all the cars should be properly arranged and covered with trampoline if possible to avoid dust settling on them.
If you are getting the used cars to be sold from people who intend making money off them, it’s important that you properly examine and review the cars so that you can properly cost them and agree on the percentage to pay the owners of the car after selling them. If you do this, you might avoid having loads of cars occupying space for a longer period of time in your car dealership shop.
It is essential to categorically state that the success of any business lies in the commitment and dedication of the employees. So if you intend running a successful car dealership business, then you must ensure that you carry every member of your team along. You should create time for meetings; a time where goals, processes and issues will be reviewed et al.
Lastly, you should keep your doors open for suggestions from members of your team and you should be willing to reward excellent performance as at when due so as to create healthy competition amongst your employees especially those in the marketing department.