How to set up a part time car dealership

Getting into the car dealership business is always a good idea. If you’re looking for some extra income by running a dealership part-time, you can be sure it’s a good idea, as whatever the state of the economy, the public always are in need of vehicles.

Like the entertainment industry, the vehicle industry operates no matter what the economic climate is like. You will be required not only to have a good knowledge of cars, but also how to run a business. As long as you’re prepared, perhaps with some motor trade insurance too, this could be a successful venture for you.

Who’s with you?

You first need to decide whether you’re going all in by yourself, or if you’ve got some friends who want to invest as well. If it’s the latter, you’ll have to decide who’s going to be the head business honcho – you don’t want too many chefs to spoil the broth.

Depending on how many investors you have and how much money has been invested, you can then decide if you’re going to start from scratch or if you have enough money to purchase someone else’s dealership.

There are pros and cons with this route. Of course, purchasing a pre-existing dealership will be very, very expensive, and would only be possible if you had others investing with you.

The advantages would be many, though, as you’ll automatically have access to the company’s resources, staff and contacts.

Consolidate a business plan

This needs to be done quite early on, particularly if you’re going to build up your dealership from scratch. You need to decide if you’re going to be selling new or used cars, or both; you need to determine if you’re going to specialise in one brand, or many.

You need to calculate all the other costs involved, like office items, computers, furniture, etc. This is, of course, after you’ve calculated how much it’s going to cost to invest in the first batch of cars.

Next, you need to calculate how much tax and insurance is going to set you back. You can look for competitive, cheap motor trade insurance to help you out. You also need to research the legal requirements involved in opening a dealership.

Last steps

After you’ve done all your research, you then have to raise the money. Once this is done, start buying your inventory and hiring your staff.

Set aside some money for advertising, and start writing up sales and lease agreements.

 

Posted by on Feb 26 2013. Filed under Small Business. You can follow any responses to this entry through the RSS 2.0. Both comments and pings are currently closed.

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