When it comes to starting a business selling used cars, you have many things to deal with. While it is important to have a great staff to help run your business and make it profitable, it is more important to have customers. They are the lifeline of your business!
Drumming up Business
Marketing will be essential and in the absence of a large advertising budget, you will have to use the free resources online as much as possible. However, organizing a “WELCOME” event for your local community won’t break the budget and will introduce you to all the locals who are interested in buying used cars.
Choose a venue that’s easy for people to reach during their lunch hour and after work or hold the event at your own showroom. Don’t serve disgustingly cheap wine and cut-price nibbles! People will remember a cheap and nasty looking event for a long time, particularly in a small community.
Advertising your new car sales business with leaflets and perhaps a slot on the local radio station won’t cost the earth. Be sure to target large and medium sized companies in your area to get a good turnout.
Sourcing Used Cars
Apart from people who come to your sales forecourt to sell you their car, there are car auctions as the primary source for your business of selling used cars. Stay clear of backstreet auctions where you are likely to be cheated out of a lot of money and will only find unsatisfactory stock.
Reputable auction houses will sell their cars in categories and you can find out prior to the sale, how many cars of the type you are interested in will be sold. Attend at least a couple of auctions without buying anything – leave your wallet and cards at home! You are there on a fact finding mission. Once you know what cars of that type typically go for, you can work out a budget, remembering that value added tax and the auctioneer’s commission are added to the sale price.
Make sure you take somebody with you who is qualified to assess the cars’ roadworthiness and general condition. If you’re good at sales but don’t know your bonnet from your bumper, you need a car mechanic to accompany you until you’ve learned the ropes.
Going Online Selling Used Cars
Online car auctions often sell repossessed, nearly new cars. This is a good source for your more discerning customers, who may ask you to get them a car from the higher end market without the price tag of a brand new car dealership attached to it.
Finally, starting your own online business will be another source for buying and selling used cars. Thousands of people are looking for a better deal on their car than they would be getting from their original dealership, where they bought their car new.
There are part-exchange opportunities and there are bargains to be had thanks to probate. When somebody inherits a car they don’t need and don’t want, they are often happy to sell it at a low price without haggling. All you need to do is help them sell it. Since you are online selling cars too you will be able to help people from around the country so, find an auto shipping company to help you transport the cars. They just want to be rid of the car, so they won’t have to pay insurance, maintenance and road tax.