A passion for automobiles is as prominent as a passion for sports. Many people simply cannot resist the visual and tactile appeal of cars which leads them to dreaming about becoming part of this vast industry. This is why so many people aspire to own their own car dealership, which offers the perfect blend of exciting entrepreneurship and a love of vehicles. If you’re excited by this thought, here are some startup considerations for your potential car dealership.
The first decision you have to make is whether you want to build your business around dealing in new or used cars. Each of these routes has its upsides and downsides, but the choice comes down to a few simple matters. Investment is significantly higher with a new car dealership, while a used car dealership won’t put you in too big of a debt with the bank. Still, new car dealerships tend to lend you a bigger earning potential.
Of course, no matter what sort of lot you’ve chosen, sprucing it up for the occasion is the natural next step. It sounds truly hard to manage, but organizing the space itself is something you simply have to finish before the car dealership lot is open for customers. Nothing should be left to chance and not a single detail should arouse suspicion. From coating your interior with smooth and fresh walls to using special line marking paint to create parking spots, it all needs to look impeccable.
The hurdle of obtaining a dealer’s license, as well as the matter of bonding and insurance might look like jumping through hoops, but it will spare you in the long run. The permit to sell cars will give you carte blanche to sell as many vehicles annually as you see fit and bonding protects you from defaults with everyone who is involved in business with you – from suppliers to customers.
Finally, insurance will cover you in terms of general liability, damage to inventory and overall lot coverage. You can start your business while the matter is still being processed, but we highly recommend postponing opening until all administrative matters are settled.
Learning the salesman trade is not only a matter of knowing the products you sell. It is a multifaceted discipline that borders on art. A true salesman will be a socially adept individual who knows how to verbalize their thoughts and has intimate knowledge of both the products (in this case the cars) and the market. They are also fully aware of the fact that all markets and indeed customers fluctuate, so they are always open to self-improvement. Fundamentally, it is all about honesty and integrity, but nuances matter.
The location of your car dealership can determine whether you’ll be successful or not. No matter how good a salesman you are or how impeccable the service you are offering, if your dealership is located in an isolated part of town where people rarely drive by, your business will suffer. This is why you need to look for properties that are located on intersections and by the side of big highways.
The overall condition of the lot is secondary to its placement, so you should really pay no attention to how rundown it is. It is much easier to spruce the place up than attract customers. Finally, look to rent a lot that is not located in the proximity of another car dealership – it can create conflict and problems that you truly don’t need on your plate.
Customers will always be in need of solid, reliable vehicles, and you might be the exact person that oozes both passion and entrepreneurial spirit to match them with the best model. Owning a car dealership is far from a walk in the park – managerial and administrative duties are enough to make your head spin – but the outlook is absolutely brimming with immense potential and opportunities. If you decide to become your own boss and start your own car dealership from scratch, you can build a strong and lasting business with your enthusiasm and perseverance.