Partner Article

Tips to Starting Your Used Car Sales Company

Used cars are sold almost every minute of every day in your local area. There is an exceptionally high demand for quality second hand vehicles, yet how to do you know if starting your own used car sales company is the right choice that will provide you with a good return on your investment moving forward.

It is not as simple as making the decision, buying in some second hand vehicles and trading. There are so many important factors you are going to have to take into consideration to ensure that you open a profitable business that meets regulatory requirements.

Before you make any decisions it is advisable that you focus on doing thorough market research. Identify what vehicles other used car sales companies have on their books in your local area. You will also want to note what vehicles sell quickly and their price ranges, this will help you negotiate the best prices when buying vehicles for resale, ensuring a good profit margin moving forward.

Knowing the demand of your local customer base can help you stock vehicles which are not going to sit on the show room floor for weeks or months, you want a fast turnover of vehicles. Obviously the more you sell, the more profit you will make. Further the faster you sell your used cars, the easier it will be to manage your insurance in the future.

A big decision you are going to have to make when it comes to starting your own used car sales company is to decide whether to buy a franchise or to go independent. Both offer their own benefits, so you need to sit down, focus on what is going to work best for you and make your decision based on your own personal preference. Some people prefer the backing and marketing a franchise can provide, while others prefer being their own boss, doing what they want to do and managing their own company based on their years of knowledge and experience in the business world.

Are you thinking of selling used or new cars? Maybe you’re thinking of keeping a selection of both. Remember that used car sales are always higher than new, many people prefer buying a vehicle that is less likely to have a high depreciation rate and that they can enjoy a more affordable price to meet them.

Ensure you know the regulatory requirements associated with opening a used car sales company. Every country has their own regulatory requirements. Getting to know them and understand them can ensure that when you open the doors for the first time, you are opening with your best foot forward.

Remember when owning a used car sales company you are going to have to focus on your insurance needs. You are going to need to insure the vehicles which are on your show room floor, while meeting the MIB requirements. You are also going to want to enable customer to test drive vehicles, which means this needs to be incorporated into your insurance policy. There is then public liability, employer’s liability and other factors to consider, ensuring that you are fully covered in the event even one of the used cars in your yard is damaged at any time. Bearing in mind that this is money you have already spent and really cannot afford to lose.

Consider offering finance solutions. Speak to financial companies to see if you can offer their services to your customers. Some used car sales can be expensive, especially on newer models, this is not cash people have lying around. Offering financial solutions and credit options can help you sell vehicles more effective and meet the needs of all your customers at all times.

About Us: Withnell Car Sales is a family run business with over twenty five years’ experience. This well-established company provides car credit and finance to everyone looking for a good quality second hand car. The company offers a choice of used cars which are updated on a regular basis, all of which are advertised with photographs to help customers identify the best choice for them. Withnell Car Sales also offer a range of credit packages to meet their customer’s personal needs and a five minute credit check is also available on their easy to use and secure website. Customers can apply for finance, choose their vehicle and drive away within an hour. To find out more, visit http://www.withnellcarsales.com.

This was posted in Bdaily's Members' News section by CEO .