How to Start a Used Car Business
Selling cars can be a lucrative enterprise. Almost everyone wants or needs a vehicle to get around town.
New cars are fine; however, the average entrepreneur does not have the extensive capital required to get involved in the new car business. Instead, they should stick with used cars. Thihs specialization has a better image than ever before.
Opening a used car lot, selling top notch cars, becoming a pillar of the community and, of course, making lots of money, are well within the reach of any enterprising individual.
So, to help those with dreams of becoming successful in 2017 get started, following are the general things that must be done to start a used cars business.
Plan the Business
The first step is to sit down and organize the business. Never start anything without concrete plans laid out in detail.
Locate and speak with a certified public accountant. This professional will know all the intricate financial and legal requirements that must be fulfilled. To make things proceed as smoothly as possible, it is highly recommended that novices find an accountant with experience working with the auto industry.
Be sure to look for some affordable, yet comprehensive, commercial insurance.
It should be no surprise that it takes capital to open a car business. The accountant should be able to help in this area, as well.
Visit banks to discuss loans and lines of credit. Also, meet with family and friends who might be willing to help.
Get a Business License
The municipality will usually have a website where it lists the requirements for a business license. Depending on the state, this procedure can be quite simple or prove nerve racking. Regardless, just realize that it is all necessary to establish a business. Most who complete the process can expect to receive a license.
Decide on a Location
One of the crucial details is choosing the physical location for the car business. A bad choice can be detrimental. Think it over long and hard.
To be successful, the business needs to be visible to as many people as possible. Nobody can count on word of mouth to secure enough customers to make it through the early years. Instead, a business needs to be seen.
Also, check with the local regulators about zoning ordinances. There may be specific locations closed off to car sales.
When looking at the Texas history of road evolution, one can see that it may be beneficial to locate near other similar businesses. Remember that competition is not always bad. An established used car lot can provide a new enterprise with exposure. Potential customers who visit the older business may decide to walk over to check out the upstart as well!
Register as a Dealer
Register as a car dealer with the government. In most cases, it is necessary to post a security bond and secure a sales tax identification number.
Another crucial decision is choosing the appropriate staff. Some owners go with trusted family or friends. Others look for employees with years of experience in the field. If necessary, place advertisements on well-known internet job sites.
Securing a vehicle inventory is an important step to opening a used car lot. Check the auto auctions because the prices can be amazingly low. Also ask family and friends if they know anyone looking to sell.
These days, cars as well as online traffic schools, can be found easily via the internet.
Use the grand opening as a means of publicity. Try to be as big as possible with balloons, clowns and whatever it takes to get people in the door.