Running a machine parcel takes a abundance deeper than condign an appreciation for cars.
Running a vehivle portion requires biz judgement, concern to act and, above all else, capable common people skills and point, address, speck. Build certain your van group is in a eminent traffic field with choicest access. Once you posses complied with all of the legal requirements--licenses, surety bonds, etc.--set forth by your control's Engine vehicle branch and your conurbation, and your financing is secured, you Testament be ready to begin profession.
Instructions
1. Your stock is the spine of your affair.
Fabricate you vehicle stock with vehicles that Testament sell in your specific universe. There are three ways to receive automobiles: Auctions, trade-ins and from other dealers. Rank yourself with an Car broker who can invest in cars for you at auction that are in formidable entail or that are stable sellers. Arrange agreements with inexperienced vehivle dealerships to get trade-ins and duty with banks and credit unions to sell their repossessed vehicles.
2. Obtain the culminating, most competent staff you can good buy.
Receive competent staff. Depending on the size of your car lot, you will need at least one more salesperson, a secretary/bookkeeper who can double as your finance and insurance person, and either a consulting or staff mechanic to check all incoming cars and troubleshoot and repair inventory. Additionally, you will need someone to take care of the lot and the cars.
3. Honesty will earn your loyalty and trust.
Insist on honesty among your staff. If you plan to run a car lot for any length of time, you want to develop a reputation for honesty and integrity. Yes, you are selling used cars "as is." However, don't treat your customers like suckers. Be honest and straightforward with them and avoid putting lemons on the lot. Get the best cars you can for the money and make sure they are sound and reliable.
4. Set your profit margin. Track the investment you have it each vehicle, including all after-purchase maintenance, gas and parts. For example, you have a car that cost you $8,000 plus an additional $300 for mechanical maintenance, detailing and pinstriping and $250 to the broker. You want the car lot to clear $1,000 profit per vehicle and a Five percent commission for the salesperson. Thus you have $8,550 in the car, plus a $1,000 profit margin and a sales Five percent sale commission.You will likely need to make arrangements with a bank or finance company to handle loans on the cars you sell. Be careful to avoid fly-by-night operations with high interest rates. Again, fairness and honesty will earn you respect and loyalty.6.
If you price the car at $11,500 with the expectation of selling it for $10,500, the salesman will earn $525 and your dealership will pocket $9,975. Keep in mind you have a secretary and a mechanic to pay, too, plus the lot's general overhead.5. Arrange to work with a bank or finance company.
Advertise and market your car lot. If there is a military base nearby, advertise in the base newspaper offering deals for servicemen and women. Take out ads in high school yearbooks and newspapers promising students fair and honest deals. If you can afford it, purchase radio ads or package deals on cable television that often rotate through various channels.
