No matter what the economy is like, most people will still need to have vehicles, making car dealerships very necessary. This is just the most basic reason why these can be very successful companies. Believe it or not, you can easily start on your own and be in business for yourself. Here is a broad overview of the steps involved in starting your own company.
Buying or Starting a Dealership
There are two basic ways to get started in the car dealerships business: either buy an existing operation or start one on your own from the ground up. Generally speaking, buying an existing business will mean a more significant initial investment. However, it also gives you instant access to all of the company resources like licenses, staff members, and customers. Plus, you can gain instant credibility and a strong reputation.
On the other hand, starting a dealership from the ground up is a great way to mold a business exactly as you like. You will have the chance to make it exactly how you want and not be tied into to a certain type or model. You will also be able to form your own reputation as your company grows.
Raising the Money
For many people, the key element of starting in the field of car dealerships will be actually raising or obtaining the needed money. One suggestion is to go to a bank and attempt to get a business loan. This is probably the most common approach, although many business owners do try and obtain private funds from independent or individual investors. Either method can work. Just make sure to do your research and know how much this process will cost. This actually makes it easier to come across as serious and professional when talking with a bank loan officer or business manager.
Know the Legal Requirements
Part of this research will involve knowing all of the legal requirements for car dealerships in your chosen area. This is going to include licenses and all of the paperwork that needs to be filled out. This should all be done even before (or at the very latest, at the same time as) you start looking for the money.
Laws should be researched on a federal, state, and even local level. It wouldn’t hurt to also have a professional help out with this step, especially someone who is experienced in the dealership business. Have them look over all your paperwork, including license applications and whatever else is needed.
Venue, Inventory, Documents
Finally, it is time to secure the proper venue or location for the new business. Be sure to check out the local zoning laws before proceeding. Once a good location has been secured, then it is time to spend some of that money and purchase your initial inventory. Know what which vehicles are the most popular for the types of auto manufacturers you will be purchasing from in order to give yourself the best chance of success.
Once the inventory has been purchased, prepare all of your forms, documents, and customer policies. This should include sales and lease agreements, buyer’s guides, and anything else that might be needed. Be sure a good attorney, experienced in the car business field, reviews all of these.