How to Set Up a Used Car Business
Many people use a dealership to purchase a car. In these turbulent economic times, more people are turning to used cars. Starting a used car business can be lucrative because people are trying to save money while still getting a good used car.
- Create a business plan. This plan should be detailed and list your long and short-term goals. It should also include financing, marketing and how you plan to operate the business.
- Contact your local city clerk to find out which licenses or permits you will need. Fill out the applications and pay the necessary fees.
- Talk to an insurance agent about the insurance you will need. You may also need to obtain a surety bond if your state requires it.
- Apply for a tax identification number through the Internal Revenue Service. Open a business bank account for the business.
- Talk to banks and credit unions about financing your business. You can also ask investors to invest money in your business.
- Look for a location for the dealership. Contact a commercial real estate agent for help locating a lot.
- Apply for a dealer’s license at your local motor vehicle department. Take your deed because you may have to show it.
- Begin acquiring used cars. You can attend auctions for most of the cars. Police auctions and estate sales are other ways to acquire used cars. Purchase all of the equipment you will need to operate your business.
- Hire the staff that will help run the business. You will need a secretary, mechanic, title clerk and a sales team.
- Market your business. Contact your local radio station for airtime or place an ad in the newspaper. Create brochures, flyers and business cards to give out. Prepare for grand opening with great deals.