Steps to follow for doing a used car business
Running a successfully used car business can be challenging, as the market is very competitive. But if you have the necessary skills like finding good quality used cars at cheap prices and repairing minor damages to make them more valuable, then this industry is your perfect fit.
Follow the below-mentioned steps if you want to succeed in this business -
1. Finding car auctioning dealer in your area is necessary in order to get good quality cars at cheap prices. Make sure those auctions are only restricted to licensed car dealers as you will get really good prices there. Dealer-only car auctions can be really profitable if you want to make an inventory of used cars.
2. Employ a good and reliable car mechanic who is proficient at fixing second-hand cars. If you have a great understanding of cars and its technical aspects it would be highly beneficial for you to run the business. Otherwise seeking third-party help will also work fine. Make sure you the used cars you will be selling are in perfect running condition so that you can earn good profit from it.
3. Offer at least six to one-year warranties on the used cars you sell depending on their prices. This helps to build trust and encourage buyers to recommend your name in their social circles which eventually attracts more prospective buyers.
4. Promote your used car business in various newspapers, local business directories, TV as well as radio stations. These are very effective ways for new businesses to get instant publicity.
5. Calculate a "bottom dollar" for every used car you want to sell. This dollar figure is actually the minimum value can get by selling the car without forfeiting profit. You can set the price by adding extra 5 to 10 percent markup to the car's total dealer cost. You will get detailed guidelines regarding these values at the National Automotive Dealer Association (NADA) guides.
6. To be a successfully used car dealer you need to pay full attention to customer service. This is one of the top priorities in order to beat competitors. You can offer customers a free vehicle identification number (VIN) report before selling a car.
Never pursue any deceptive marketing practices to sell your cars. Don't hide the mechanical defects of a car. If possible you must repair those defects before selling them.
If you can meet the customers’ expectations to offer quality service this would help to boost your overall business success.