Are you an entrepreneur and wanted to start a car dealership business?
A lot of people believe that car dealership or car trading is a straightforward business; buy cars cheap and sell for profit.
However, a car dealership is not as easy as eating cake. You will need to understand how things work and learn how to make your business profitable.
There is a window of opportunity for you to start a used car business right now and you do not have to be a car expert to be successful selling cars.
The simple trick to make money in a car dealership is to find a buyer as quickly as possible. It means selling quickly is the best way to make good money.
The great thing about car dealership is that it’s perfect for an entrepreneur looking for a simple business idea.
It is an interesting time in the UK automotive industry right now with the sale of new cars in a sharp decline in the first half of 2018.
Vehicle registrations have fallen 6.3% in the first half of the year compared to 2017, which in itself was a year of sharp decline.
Reasons for the fall
It is thought that the Government’s proposed ban on petrol and diesel, as well as the current economic situation, have stopped people from making the large investment of purchasing brand new.
This is evident with diesel sale statistics, which plummeted 28.2% in June along with the rise in demand for alternatively fueled vehicles – an increase of 45%.
A rise in used car sales
This fall in new car sales has resulted in a steady increase in the sale of used vehicles. This is because these are a much smaller and safer investment for an individual to make. Also, the huge market makes it relatively simple and straightforward for a motorist to find what they are looking for.
People need to change their automobile from time to time or purchase one for the first time which means that there is still demand despite the Government’s proposed ban and the economic situation.
Starting a used car dealership business
This means that now could be an excellent time to start a used car dealership as this market is experiencing a boom. In order to succeed as a used car dealer, you will need to consider the location.
If you plan on stocking multiple vehicles at the same time, it is important that you find a suitable premise where you can store and showcase these vehicles.
In today’s internet-driven world, it is also vital that you have a strong online presence and a website along with social media channels where you can advertise the vehicles and answer questions, arrange viewings etc.
Another key aspect to consider when starting a used car dealership is motor trade insurance. This is a type of cover that will allow you to protect all of the vehicles under your care so that you are covered if there is any kind of accident or mishap.
This is a type of insurance that is highly flexible, so it is important you find a really good specialist to determine the right level of cover for your particular operation.
Companies such as Gallagher specialised in automotive insurance and provides insurance and risk management advice for thousands of motor trade businesses.
The plummet of new car sales has meant that the used car market is enjoying a profitable period and it is easy to see this continuing which means that opening a used car dealership is a good option for those seeking a new career path.