Do You Need to Plan for Your Own Car Lot?

Posted on August 2, 2011 by Aaron No Comments

If you plan on opening up your own car lot, there are some things you should know first. While it can be a very profitable business, it does require careful strategic decisions. When you are first starting out with your car lot, there are really just a few things you need to do. Consider these tips.

Get your dealer license

If you plan on selling cars publicly, you will need a dealer license. Wholesale dealers are required to hold a license to sell cars. It is not very difficult to obtain a dealer license, but it does require paperwork and time. Regardless, you will avoid a lot of legal headaches by holding a license.

Design your budget

A car lot requires a lot of overhead. Lot fees, starting car costs, taxes and insurance costs are going to require a huge startup cost. You should not only be prepared to handle these costs, but you should also have money left over for both emergencies and any extra costs that may arise.

After your first few customers, you should have a basic idea of how much money you will need for future merchandise. Your commission base and business expenses should be included with this amount as well. Do You Need to Plan for Your Own Car Lot

Network

You should have an extensive contacts list in your network before you open your business. Your contacts should be business professionals who can help you market your company, develop business relationships with other companies and find your loyal customers.

Before you make plans for your company, network with people in the same business. They can give you valuable inside information that only people in that business know.

Consider all of these points while you are making a plan for your own car lot. You will be better prepared for opening day.

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