How to Start a Used Car Sales Business
Selling used cars is a lucrative business venture. It offers the opportunity to be your own boss and make good money. To be successful in this business, you need to buy low and sell high, and offer good service to your customers. Here are some tips to help you get started in your own used car sales business.
- Choose and register your business name, obtain a business permit and take care of all legal requirements. Contact your local Small Business Administration to get free assistance in completing all the paperwork, writing a business plan and getting financing and employees.
- Acquire a vacant lot with adequate space. Look for a location for your used car sales business. Find a location in a commercial zone. Contact your local Department of Motor Vehicles for rules and regulations regarding selling used cars.
- Purchase used cars to sell on your lot. Attend wholesale car auctions to buy cars for your inventory. There are all kinds of vehicles at these auctions, including used trucks, SUVS and cars. Also, go to towing company auctions and police auctions. Be sure to take your dealer/wholesale license when you go to buy vehicles from these auctions. Since you cannot test drive the vehicles during the auction, it's important that you thoroughly inspect each one.
- Hire a licensed auto mechanic who can help you examine the cars you'll buy for any problems. Always take the mechanic with you when you go to purchase used cars. Hire an experienced auto salesperson that can help you sell the used cars you purchased.
- Obtain pricing quotes for various used cars. Go to the website of Kelley Blue Book. This website provides pricing range for various used cars based on the make, model and year as well as other conditions.