This year, used car dealerships generated over $118 billion. This is a great business for people who want to sell cars but don’t want to have a franchise with a major auto manufacturer.
There are many independent used car lots that include cars in different conditions, makes, models and prices. There’s also plenty of room to customize the business. How to start a car dealership.
How to start a used car dealership
Here are the basic things you should know if you want to get started in this field.
Market Research
You need to understand your market before you start selling used cars. Learn about your local consumers first. What type of car are they interested in? What role does the price play? What makes them choose a dealer in particular?
You should also get to know your competition. There is already a swarm of a certain type of car dealer near you. You may be able to differentiate yourself in a different way, or you might want to focus on a less saturated market.
Don’t stop at identifying the customer’s preferences or competitors. Investigate economic trends within the automotive industry. Also, consider the impact technology has on the car-buying habits of consumers.
