I would like to start with a used car dealership. Something small a mom and pop shop maybe 30 cars with a 10 car rotation
Kev, There is a profound difference between doing something (anything) and BEING IN THE BUSINESS of doing it. I'm sure I don't have to tell you that the car business is a VERY industry-specific business.
I have been looking for an highly EXPERIENCED person to "partner" with to do this for about a year. I have a very strong general business background. But, realizing that this is so industry-specific; I would never begin it without the expertise I believe is needed.
I have two possible directions for you to consider. One is to "hire" the skills required. I chose to NOT do this, because I realize that "loyalty" is a fleeting thing, and that whoever I hired today could be gone tomorrow, leaving me a "babe without a mother".
Therefore, I will consider this for myself, only with a "partner" that has an investment....something to loose...."Some skin in the game".
I recommend the same for you..
It's hard to find a partner...with money....who is not already in the biz. (If he is in the biz, he either doesn't need you, or he's doing something wrong.) - And then there's the problem of finding an "Honest", customer oriented, person. (Not a money-grubbing crook who will spoil your reputation). - Keeping in mind that in the mind of many people a used car sales person is only a half-rung higher on the ladder than a serial killer or a terrorist.
Welcome back UncleLeon
It has been a long time since posts.
Hope all is O K, LUCKIEST
Welcome back UncleLeon .... It has been a long time since posts
Thanx, Luckiest. sometimes "Life" gets in the way of less important things.
Fortunately, It's good to know that you are here to "guard the hen house" and promote SCORE for the benefit of those who may benefit.
Kev, It's a great business if you have the money and the "know how". I'm not sure if you can help you out with any information in regard to licensing because im in Indiana and the laws are somewhat different. As far as financing companies and insurance I will be more than happy to provide you with information. Feel free to PM me at anytime.
Thanks, I am very new to this forum so I will be sending a PM as soon as I figure this out.
Good work is definately hard to find. How about a partner with money and nothing else to offer or want to offer, should I take him on his offer? Someone just looking to invest. Also, what is your take on employing family members? My logic says no, but my desperation and fear of making a bad impression say YES. I have established a solid reputation and value that over all else so it is hard to hire someone I do not know because I feel I have alot to lose, even now without that much invested. I feel I have the momentum to make a move to expand and don't want to ,"fix something that is not broke" nor go broke. I have seen alot of companies expand and fall and others expand and prosper.
Many states have actual classes that are taught to existing car dealers, moreso meant
to be annual "updates" as to what is going on in the industry and to keep the owners
and employees updated on licensing, regulation and business requirements. Look
in your state government to see if that exists in your state. You can find out if you
can go as a new dealer, or what is required to attend. Once there, you can network
some, talk to the instructor and dig further.
You are doing great, though putting up a building, even if small will cost a lot. Renting
may be good at the outset, or financing a small prefab office may be best. You will
need that money later. Even though you are doing good now, keep your costs down,
there will be many needs later.
Do some research in your state to see what organizations are out there to give you
specifics on a car dealership in your state. You are probably up to date on the
repo laws, though there may be more requirments for a true dealer.
Many states have actual classes that are taught to existing car dealers
Right, Koln. There are professional associations. These could probably be found by "googling" Auto dealer association" (and including your state). If not, contact "Manheim". If it's about the car business, - they know it.
Many Texas car dealer associations want me to be an established dealer and that is what I am trying to become but I was looking for help on the does and dont's on getting my license and many want me to pay dues. I am not a dealer yet and want to know if I am not apposed to paying dues but do you guys think it would be worth it or are they just trying to make a buck? Like Uncle Leon said many people see car dealers or used car salesman as a half-rung higher on the ladder than a serial killer or a terrorist. Not saying car salesman are trying to sale me a membership as I DO want to join and trust any one willing to give information and pointers. I really do want to be a part of a dealer association and learn as much as I can but many people do not want to waste there time on showing me the ropes for free as they are already busy doing there own thing. I have even considered going to the nearest independent dealer and tying my luck at picking his brain. I have just purchased a building from a government auction and clearing out my property what should be my next step be and any other pointers?
Thank all so much for the great information. I have some phone calls to make and googling to do, and If I could I would pay dues here!
Good luck Kev!
So glad you're having a good experience in the Community, Kev Keep us updated!
I live in Texas and have been in sales 10 years. I have bought and sold cars part-time for the past 2 yrs and my network of clients has grown ALOT so i recently got with a autobroker to purchase cars at a lower price than before and I am doing very well. So well I have saved up 30k and want to open my own dealership am very confident in my buying and selling just not so much in my ownership or running a business entity smoothly. I have an acre of land that was given to me on the side of a very busy hwy connecting two cities, I think a prime location for a car dealership. Does anyone have any ideas for building a car lot, putting a building up, and the ins and outs of getting licensed, financing sales, and taxes? Any advice would greatly be appreciated.