Today, with the average consumer now spending up to $26,400+ for a new car, consumers realize the importance on investing in lower priced used cars. With millions of buyers entering the used vehicle market every year, a wealth of opportunities exist for anyone looking for extra income, or a new and lucrative full-time career. They key to making a lot of money in this business is to buy low, and sell at a huge profit. This report will show you how to get started down the road to riches as a used car dealers.
Operating your own used car business
The goal of many people is just to make a little extra income. If you consider $1,000 to $3,000 or more for a single sale in one month to be “extra income” you could easily make that in your spare time without much effort.
On the other hand, you may be one of those people who want to be their own boss. While it’s true that the risks are often greater than if you just worked for someone else, it’s just as true that risks and rewards go hand in hand. If you’re willing to take the plunge, the potential returns are also greater. If you have a bit of the adventuresome spirit and some confidence in your own skills and abilities, operating your own used car business may be the ideal way for you to make big, big money!
Advantages of owning your own business
The opportunity to express your own ideas and do things exactly as you want are among the primary advantages of operating your own business. The challenge and excitement of running your own operation also ranks high on the list. Another big advantage is that you will receive all the profits generated by your time and efforts. The potential exists to develop a part-time business into a full-time career that produces an income you never thought possible.
Skills and abilities needed
The same type of personal skills that are necessary to successfully work for someone else are also required to be successful in working for yourself. Personal skills involve being conscientious, dedicated, determined and persistent. Good human relation skills are also important.
There is also another type of skill that is necessary: It involves the ability to manage and organize your activities and possibly those of others if you hire salespeople to work for you. This skill should be taken very seriously because it organizational ability that can make the difference between huge success and total failure.
Finally, you will need technical skills. These are the skills that include the knowledge to perform activities involved in the used car business. It is this combination of technical, personal and management skills that will make your operation successful.
Getting your used car business established
Whether you are operating your business on a part-time or full-time basis, people will expect you to provide the type of service any consumer expects. They will also associate the type of service they can expect with the image you create for your business. This image will be the impression you make on others.
For example: Will people perceive you as handling high-medium, or low-priced vehicles? Will your used cars appeal mostly to the rich, the poor, or the middle class? Do you sell something for everyone or do you specialize? (Just pick-ups, just vans, etc.)
Any positive image is fine as long as you are consistent in everything you do within the scope of that image. The image you create will largely set the tone for all your business activities, including selection of a business location, types of vehicles handled, prices charged, etc.
Selecting a location
If you are going to buy one or two cars at a time for resale on a part-time basis, then working right from your home shouldn’t pose a problem for you. However, if you intend to eventually have a large, full-time business operation, the most important ingredient in your success or failure could be your location. What constitutes a good location varies with the type of business. But in the used car business it means being highly visible in a high traffic area, and being situated so that driving customers can get to you. In many cases, the location yo consider ideal may not be available, or if it is, the cost may not be practical. In that event, you will simply have to select the next best location you can find and that is affordable. Then you will have to male a strong advertising and promotion work to make customers aware of who you are, and what you are selling, and where they can find you.
Whether you select a location at your home or in a business district, you must make certain you are operating within city and county zoning ordinances. Zoning ordinances are regulations specifying what each parcel of land within a community can be used for. In the location you decide on is not zoned for the type of business you want to start, you can appeal to the zoning commission to obtain a “zoning variance.” If approved, you will be allowed to use the property for your business.