does setting up a car dealership business requires experience to succeed ??

Question

iam studying managment at my final year at university and i was thinking of starting a car dealership when i graduate the problem is i dont have much experience ??? any advice on how this industry works ?? should i take the risk or not ??

thank you

Answer 1

I would suggest working closely with someone who already does this for a living. If you are going to sell used cars some states have different requirements and it would be best to found out exactly what it takes before you decide.

Answer 2

immediately after graduating from university it is exceedingly unlikely that you'll have anywhere near the training or experience to open a dealership on your own.

which, of course, is why none of the new car manufacturers is likely to even grant you an interview. Not to mention that they know it requires large capital to start a dealership [and you've offered no evidence that you have large capital].

So what you do is go to work in the industry after graduating. There are a couple of chain dealership outfits in the US that are large enough to be publicly traded. I'm sure there are others that are privately owned.

The job a dealership always needs people for, obviously, is sales. Some offer training. That's where you can perhaps begin.

How do you find the ones that offer training? Ask.

Ask every dealership and chain that you can imagine you'd be happy learning from and with.


If you prove yourself and become successful as a salesperson and then sales manager, then you'll be in a position to talk to the manufactuers about opening your own dealership. [Or buying someone else's.]

GL

Answer 3

ok-- so my dad and i owned (well dad) a used car lot--- i was there for 4 years till the car business in ohio just stopped, and we closed, but for those 3 1/2 years it rocked,,, you can make money , but you need to have some to back you, you need to get a dealer license , and you need to get a floor plan at an auction. With out the floor plan you are dead, unless you want to open a cheap by here pay here lot. We averaged spending 3-8000 on cars from 1996-2006 all kinds , from buying them at the auction , with the floor plan you have 30 days to pay them off , so that gives you time to sell them. There is tremendous money to be had in that business, but you have to have good ethics or you can get caught in the scene. Location is the key. You have to have a good spot or else your lot will fail. Location,location, location! And lots with a garage will make you money b/c you can do service work , you dont need a big lot, you dont need a bank roll, you just need to know what to do, who to hire, and have good cars.... it is a great business...... feel free to email me any questions you may have ....

Spocks answer is not bad, in the sense of maybe becoming a salesman , or something, but if you are not trying to open a Ford Dealership , then all you need is used car lot. A used car lot and loan . With someone you can trust, b/c money changes ppl, and there will be a flow of it .

Answer 4

ANY business requires experience and a deep understanding of the given industry and all facets of how to operate a business. Without those, even if you are that diamond in the rough, the odds begin to stack exponentially against your success.

All that said, a car dealership is a viable business model that can work if you know what you're doing.

Answer 5

It takes a lot of experience and money to get started. Your best bet is to hire someone that has experience in dealing with the public and running a service department, you also need commercial property where there is a lot of traffic and an easy way to get customers to visit your dealership. Good luck and God bless you.

Answer 6

No, just ethics, and hard work. Try to find a mentor who may be able to give you some insight into this field.