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Considering Starting A Used Car Dealership

Discussion in 'Offline Marketing' started by hi.imandrew, Feb 25, 2011.

  1. hi.imandrew

    hi.imandrew Junior Member

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    Startup will cost about $2500 and then $900 monthly.
    Does anyone have any experience in this area? Is it hard to sell cars at this time? Any info will be appreaciated.
     
  2. angelas111

    angelas111 Jr. VIP Jr. VIP Premium Member

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    i have been in the business for 8+ years now..................... if you have any questions let me know.
     
  3. PitchBlack*

    PitchBlack* Junior Member

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    Make sure you hire a very good mechanic. He will be the lifeblood of your business. Location is also key.
     
  4. hi.imandrew

    hi.imandrew Junior Member

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    My partner loves working on cars, my question, is there money in this? We're using money from our taxes to start this up, and the 900 a month to run will set us back quite a bit.
     
  5. breakaway

    breakaway Senior Member Premium Member

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    Anything you need to know, just ask!

    BTY, hello my salesmen friends!
     
  6. breakaway

    breakaway Senior Member Premium Member

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    There is a lot of money in selling cars as long as your not selling junk. Selling cars is not as easy as everyone thinks. Repeat business and refuels is your lifeline!
     
  7. BigMACK

    BigMACK Junior Member

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    How are you going to get your first cars? Auction?
     
  8. hi.imandrew

    hi.imandrew Junior Member

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    we own a few cars to start out with. we're also considering going to people currently selling their cars, and offering to put them on our lot for a small fee. once we have more money we will be going to auctions.
     
  9. moostangdude

    moostangdude Newbie

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    I come out of an small town auto sales background.

    1. Don't sell junk, it will bite you in the a**

    2. You make your money when you buy your cars, not when you sell them. If you buy your cars to high, you will go broke. A lot of people think they can sell any car they bought for a profit, they are wrong.

    3. Are you putting together a "financing" or "note" lot? or is this a buyer financed situation?
     
  10. moostangdude

    moostangdude Newbie

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    Where are you at? In the States you need a dealer license.
     
  11. da buck

    da buck Regular Member

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    I have been in the business for 10+ years as well. It can still be very profitable. Your start up costs seem very low though. Are you able to do the mechanical or body repairs yourself?

    @angelas111 - where are you in Ohio? I'm in Dayton.
     
  12. breakaway

    breakaway Senior Member Premium Member

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    Yes a dealer license and a sales license + taxes + payroll and on and on!
     
  13. angelas111

    angelas111 Jr. VIP Jr. VIP Premium Member

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    i am ready to get out of the business because it is highly stressful...............and i want my life back. i am very close to exceeding my income enough with IM to where i can do that.
     
  14. angelas111

    angelas111 Jr. VIP Jr. VIP Premium Member

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    youngstown
     
  15. hi.imandrew

    hi.imandrew Junior Member

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    Yes we our working on getting our dealers license. That startup price is for the lot, business license, bond, and various other expenses. But there may still be more. So what I'm getting, is though it is alot of work, it is still a profitable business?
     
  16. angelas111

    angelas111 Jr. VIP Jr. VIP Premium Member

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    Its highly profitable but its not worth my sanity though. I would much rather be doing full time im. I don't want to discourage you from doing it though. I think my problem is we became "too big". When we were smaller i liked it much better.
     
  17. angelas111

    angelas111 Jr. VIP Jr. VIP Premium Member

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    Hit me up on skype sometime and we can chat. Skype: Angelas1113
     
  18. PitchBlack*

    PitchBlack* Junior Member

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    Theres money in anything if you do it right and work hard enough. What kind of answer are you expecting? Someone to tell you that you can make a million bucks? Sure if you try hard you can.

    If its something you have a passion for , go and do it. Theres a risk in any business venture. Research your local market, talk to some experts, draw up a business plan, talk to accountants and judge for yourself if you will be profitable. Every dealership is different. It all depends on the current conditions in the market your trying to sell in. Your success depends on you.

    Goodluck.
     
  19. hi.imandrew

    hi.imandrew Junior Member

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    Added You.

    Thanks for the replies guys. I understand it depends on how hard you choose to work, I just wanted a few opinions of experts.
     
  20. fiesta

    fiesta Junior Member

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    try to go for higher end used cars becasue the profit margins are higher and people looking for them have more money to spend

    if you can also arrange financing for people you'll be rolling in dough