My husband and I both would love to open up our own used car dealership. Right now we are busy working hard on our credit and saving up money. I've checked out how to get a business license in my state, but my big dilema is how to get a store front. Is renting or purchasing better? What's some average prices? I'm a little clueless so any advice would help! Thanks.
2006-09-27 05:33:17 · 6 answers · asked by ashley g 1 in Business & Finance ➔ Small Business
Impossible to answer without knowing more specifics. How much is the rent vs the purchase price? what terms are you getting on the purchase? how much of each is deductable? how much space do you need?
There is no such thing as an average price. it will vary from city to city and different parts of the city will have different prices.
What you have to do is figure out how much you can afford and then see what you can find in that price range.
2006-09-27 05:36:48 · answer #1 · answered by Jim R 5 · 1⤊ 0⤋
I was a former business owner, and have been thinking about starting another business.
I got a license from my city, resale permit from the state, other IRS forms that were for hiring employees.
Out here, leasing a building is pretty much the only option.
I completely threw out the idea of saving money to start up as it would take forever to save the capital to get things done. Instead I went to the city for assistance, and two banks.
It ended up working out pretty well, but I stopped because I was getting bored, and business became redundant.
2006-09-27 05:50:44 · answer #2 · answered by terrylondon00 2 · 1⤊ 0⤋
I would start by renting rather than purchase. As a new business, you don't want to have your capital tie up in real estate. You need as much cash as possible for other stuff.
Renting retail space is priced in dollar per square foot per year. Depending on how big you want the space to be and the location, price can vary tremendously.
I really rough estimate is that you don't want to go any higher than $15/sq ft.
Best of luck.
2006-09-27 05:41:47 · answer #3 · answered by JQT 6 · 0⤊ 0⤋
I would recommend first looking for a lot, to display the used cars you will be selling. If it has a building you could use for an office great. If not, consider a short term lease of a house trailer, which can be used/converted into an office.
BTW where are you going to get the used cars you intend to sell?
2006-09-27 11:18:45 · answer #4 · answered by PALADIN 4 · 0⤊ 0⤋
rent for now. if you live in ny dont even start. im closing my used car business sat 9/30 after 15 years . the state regulates to much and there is not enough money to be made anymore. too many dealers
2006-09-27 05:47:59 · answer #5 · answered by momo2765 3 · 0⤊ 0⤋
If I were you, start off renting and then when your business takes off, you can buy a nice, big store front.
2006-09-27 05:37:03 · answer #6 · answered by katie-bug 5 · 0⤊ 0⤋