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    6 Replies Latest reply on Jun 30, 2009 10:49 AM by LUCKIEST

    Used car dealer

    taylorgi Newbie
      Hello everyone! I am currently working in the auto industry I have held several positions at the dealer I have worked for the last seven years and feel that it is now time for me to go out on my own. I have done extensive research and have my business plan underway. There are a few different areas of the business that I have some questions on so if there is anyone here that has experience running or owning a dealership your advice would be greatly appreciated!

      To give you some quick background I plan on opening on a very small scale, I want to deal in cars that I can retail for between $5000 and $10000. I plan on only buying a handful of cars to start (6-10) moving them as quickly as possible and replenishing as I go. I will have a store front (because it is required in the state of NY) but plan on using an internet based sales approach to target customers. Please feel free to comment on my general plan as well. Thanks again!

      1) Insurance??? What can I expected for cost? What type of coverage do I have to carry?

      2) Paperwork? Besides an MV-50 and bill of sale what else is a must in terms of paperwork? Do I always have to collect sales tax? (Only people familiar with operating in NY I guess will be able to answer these)

      3) Is there anyone out there selling used cars primarily on-line? If so any advice would be a huge help!!

      Thank you for any advice you can give!!!!!
        • Re: Used car dealer
          taylorgi Newbie

          No one out there in the car business? Any info would be greatly appreciated!
          • Re: Used car dealer
            RanksIntl Adventurer
            Hello!

            I am not in the auto industry but I can help on a few of the points that you are looking for.

            1) Insurance: You will need insurance on any vehicle that you own and anything that has your dealer plates. The cost, however, will vary based on the make, model and year of the car.

            2) Paperwork: You will need to register your business ahead of time and need a certificate from your county clerk's office. You will need a sales tax number and a Certificate of Authority issued by the New York State Department of Taxation and Finance. You are going to need a VS1.1 surety bond that will range between $20,000 and $50,000 based on the type of dealership. A statement of ownership or permission to use your location VS-19. You will need additional licensing and paperwork if/when you obtain employees.

            When running a legitimate operation you are going to want to collect sales tax otherwise you can end up putting yourself in a rough spot. There are other steps that you are going to need to go through but my first suggestion is going to be work on your business plan. If you do not have the money to invest in this venture then you are going to need it to obtain lenders or investors. I specialize in small business start up and expansion so if you have any other questions on this let me know. My email address and website are in my profile. Hope this helps!

            Renee`
            • Re: Used car dealer
              RanksIntl Adventurer
              Hi,

              I just left you a message with a good amount of information. If it doesn't post you can email me at the address in my profile.

              Renee`