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Becoming A Car Dealer





Im seriously looking at setting up a small car dealership, i would be specialising (i need to learn to spell first!) in sports and performance cars. No Porsches, Ferraris etc, more like 106 gti, 172, zetec-s, vtr/s, mgzs/zt.

May look into importing the odd scooby/ skyline as well.

Just wondering really of who would be the best people to contact for advise?

Any websites giving advise? Just basic starting up stuff really, does anyone on here own such a business?

Any advice or information or any comments you have are much appreciated!
 
  BMW Z4 2.5si Sport


go into Lloyds TSB and ask for a copy of startupRoutemap - its a disc for the pc that helps u form a business plan - looking at every angle u need to etc...
 


Quote: Originally posted by chrisba on 01 April 2004

Im seriously looking at setting up a small car dealership, i would be specialising (i need to learn to spell first!) in sports and performance cars. No Porsches, Ferraris etc, more like 106 gti, 172, zetec-s, vtr/s, mgzs/zt.
May look into importing the odd scooby/ skyline as well.
Cliosport discount I hope ;)

Id recomend you specialise ie imports or hot hatches.

The biggest problem will be loads of buyers will be young lads and trying to tell who is out for a test drive and who is serious could be difficult best get some paid experiance at a garage before setting up on your own.

I alwasy thoguh the idea of being able to hires some fast cars would be good not scoobie to much as the costs would be to high but 106 GTi/ 172 etc for the weekend.
 


you need some heavy financial backing to set this off

cant get cars on promise at first... need to invest in some minters, for cheap, to get off the mark

check out some auctions, see what they go for, and what kinda profit you can make.

get a really good business plan, good ideas, and loadsa research, then go see the friendly people at the bank
 


To start any business you will need capitol and this usually comes from the bank, which is where your business account would be.

You will need a business plan, without this you will get nowhere.

Also do not take any advice from anyone on this site unless they have been in the business themselves, running any business is not easy and requires alot of work before hand if you want to be successfull.

You could ask Citizens Advice for local help with getting into business and speak to some professionals.

First things first is your business plan though.

Good Luck, hope it works out for you
 
  Clio 197


My advice is dont do it. Unless you have a huge amount of capital and are one tough businessman. It is a dog eat dog game and at the low end the deals are skinny. Take in one bad trade, or have an engine blow on warranty and you worked that month for free. There are much better ways to make a living. Been there done that. Made lots of money on high end cars. Lost bunches too. I still dabble a bit, but there is no sure thing, and some of the tastiest cars end up sitting in a showroom for ages.
 
  Trophy 263 + 265


do you have any sales experience?

if not forget it.

if you have then good luck you are going to need it.

there are plenty dodgy dealers out there.

you dont want a visit from a local rival and his boys off to play some baseball with your head:cry:
 


Cheers guys i appreciate the comments.

As far as capitol goes i have been offered financial backing by capital bank (my father being the head honcho helps!)

Ill definately check out that Lloyds disc.

If it doesnt work then it doesnt work at the end of the day.

I do have SOME sales experience but nothing in this field, but ill never learn if i dont try.

Im definately gona sort out a business plan and show my father see what he says (he deals with this day in day out and has recently financed mg rover!) If he thinks its worth it then ill go for it!
 


Quote: Originally posted by chrisba on 03 April 2004

Im definately gona sort out a business plan and show my father see what he says (he deals with this day in day out and has recently financed mg rover!) If he thinks its worth it then ill go for it!
Good luck but make sure he isnt looking though rose tinted glasses at you.

Also I would recomend getting someone you dont know to agree to it. You wouldnt want to have problem with your dad feeling he couldnt ask you how business was going as your his son.
 
  Volvo S60 T5


Good luck mate

The motor trade is real hard work mate, I was gutted a few years back at the garage I used to work for as manager my old boss retired and offered it to me for 150K was gutted I passed on it, but I was real hard up at the time, if it had been now I would have snapped it up.
The 2 guys that own it now are doing really well so I have heard, but they had a good customer base when they took over.

You need to look into this real well dont jump in thinking its easy, trust me its not and there is a big shortage of top quality skilled technicians nationwide the only way you gona get top blokes is to pay top money.

But I wish I had purchased the garage for 150K:(
 


Quote: Originally posted by edde on 04 April 2004


Quote: Originally posted by chrisba on 03 April 2004

Im definately gona sort out a business plan and show my father see what he says (he deals with this day in day out and has recently financed mg rover!) If he thinks its worth it then ill go for it!
Good luck but make sure he isnt looking though rose tinted glasses at you.

Also I would recomend getting someone you dont know to agree to it. You wouldnt want to have problem with your dad feeling he couldnt ask you how business was going as your his son.


Yes i know what your saying mate. As far as business goes i would be just another client to him, i know that.

I would definately get it checked out by someone else too but seeing as he is at hand!
 
  Clio 197


Well, sounds like financing isnt a problem. Now talk to a bunch of guys in the trade and find out what their margins are and see if you can live with that. You are not going to get anywhere near their returns for a while either. Remember that starting from scratch you will have no repeat business and it will take years to build a decent reputation.

Look at other businesses which may offer higher returns for far less risk. Remember that as a profession, used car dealer is about as low as you can go...

Dealing with low end machinery is brutal. Your customers will be tough to finance, your margins will be paper thin, and you will have to deal with a lot of headaches.

If you are completely commited to geting into the trade, go for the high end.

Think of wholesaling as well. It would keep your overhead to a minimum, buy and sell only with in the trade and no hassles dealing with the retail customer and warranty work etc. With a retail site you ahve to have an relatively expensive pitch. Wholesale you can locate anywhere.

Find as many successful guys as you can and pick their brains before you do anything. Seek out a few who failed as well and ask them what it was like. You willl learn from them all.

Look before you leap.
 


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