Starting a used car dealership advice.?

Question

Hello,
I am going through the paperwork to get my dealer's license in NYS. I have been the purchaser for a different dealership for about a year and have learned a lot. The major thing I learned is that there is always something I dont know. Any car auction tips and tricks to picking a good car? Ive made good and bad picks and know the basics. Also, more importantly, and tips on running my first used car business, like how to provide financing for the consumers, etc? Any tips will be greatly appreciated.

Answer 1

if you sell a real stone, and it comes back on you. take it back for full price or put them in a good car then send the stone back to the auction block. if you try to fix a major collision, poor body work car it will cost you more than it's worth and your customer will never be happy or back and he or she will tell friends [this has been proven to cost approx 1/3 of possible prospective sales in a small to midsize town].

don't tote the note for anyone for your first two years of business take a small amount of your profits and set aside for this. because it only takes a couple of deadbeats in a row to ruin your business. and get friendly with a good repo-man he just may save your childs college fund and your house

Answer 2

If you are setting up as an independent, it is going to be hard, if not impossible, to sign up as an indirect lender with banks, unless you have pretty hefty cash reserves.

You will also find it hard to offer warrantys on cars until you get established, for major companies are not going to want to deal with a small independent.

Likewise, it is hard to get set up on floorplanning your cars, so your cash flow will be very tight, and you will have to buy what you can quickly turn.

Typically, an indepenent used car dealer should have 15 to 20 years used car experience before they start their own dealership. 95% of independents fail within the first few years, mainly due to cash flow problems, and I have seen New Car dealers fail at stand alone used car lots.

Advertising is going to be your life blood, if you can't afford to sink a lot of money into heavy hitting ads, then people will not come in.

Instead of auctions, hook up with some dealerships as a wholesaler. This gives you a better pick of cars than the auction, and helps you build a base of business that can supplement your used car lot, often making the difference between being profitable or bankrupt. The best wholesalers know the market, and have their own lot to sell their "niche" vehicles.

Know your target market, who you are going after, what they will buy, and how they will pay for it. You can't sell New Lincolns in the ghetto, and you won't sell buy/here pay/here cars on 5th Avenue.

You may find that you need to finance some of your own accounts: always go short term, get your investment in the vehicle as down payment, and repo the cars if one payment is late. You take a high risk, but in many cases you'll have no option but to hold your own financing on a few cars to keep some cash coming in.

I will say, unless you know 100% of what to do, how to do it, then hold off before jumping solo.

Answer 3

Get the automobile inspected via a motoring organization ,interior the united kingdom, this would be the RAC. You dont understand plenty approximately autos, the companies that look into autos do! try this or you may desire to get a lemon.

Answer 4

yeah I have some advice get a cool logo