what do i need to open a car lot?

[georgie24]

legal stuff and shit

 

[manny78]

Dunno how it works in the US but here there's a lot of paper works, must comply with the equivalent of your Better business bureau and mostly... also keep in mind insurance is pretty high. Is it going to be a used car lot, new only or both ?

 

[Razorguns]

stamina, money, business plan, education, experience.

in reverse order.

experience gives you education on selling cars.

education on selling cars allows you to write a highly proficient and intelligent business plan.

that acute and stunning business plan allows to raise funds or get loans from a bank.

that fund of cash allows you to buy capital, insurance, cars, etc.

That purchase of the "company" then sets up for final continual tough ass stage of needing stamina. Dealing with the stress, constant b.s., low profit margins, massive paperwork and all the other elements of the car selling business which make it so undesirable to most people who dabble in it.

 

[MattTheSkywalker]

Razorguns,

have you ever sold a car other than your own? have you ever operated a business? i have never seen you offer specific advice about anything business related. \Al that stuff you told georgie is useless.

georgie24, when you make a post entitled asking for "legal stuff and shit" ot is pretty hard to offer you serious advice...so I can't be too hard of razorguns.

Do you have any specific or deeper questions?

 

[Razorguns]

His question was a very broad-based open-ended question. Without asking of details -- it's not possible to provide any details. You should be aware of that.

 

[beefybull]

You'll need all the massive amounts of paperwork your state requires. In most states, this stuff will be available online in .pdf format. You need Adobe Acrobat or Reader to open/print these. You'll have to print these up and make copies of some.

-Business registration (if required in your state)

- Apply for a Dealers License. In many states this requires you be bonded for $10000-30000 and have a fixed address to receive mail/paperwork.

- You need equipment for bookkeeping, a good computer, backup stuff, file cabinets, and appropriate papers/log books.

- Find out all the local/regional dealer-only auctions. Once you have your license you can buy at these, the deals are outrageous but you may have to compete with bigger dealers who have more capital than you.

- Equipment for moving vehicles (tow truck, car mover, flatbed, etc.)

- Some repair/maintenance/protection equipment
(air compressor for airing up tires, tire changing/removal equipment, tarps/car covers, etc.) this makes it so you dont have to take cars to tire/wheel shops all the time

- A mechanic on staff would be good or just make deals with local auto shops. Find someone who will tint windows cheap b/c you're a dealer and get your cars painted right.

Theres tons more I'm not thinking of, pitbullstl could answer some things.

 

[beefybull]

You could also get cars cheap by doing car title loans then repoing cars but some would not like to do this.

 

[georgie24]

i hear u need at least 30k...no?

 

[trader869]

i hear u need at least 30k...no?

Hello.im new and i realize this is an older post. My father is in the business,so i have some experience. I grew up around cars, and it is one of the easiest businesses to get into.
First you need to go to your states DMV and get the required paperwork, which is free. My suggestion is to have a lot to display your vehicles, it doesnt have to be big,but it does have to have some sort of traffic...you need to be seen if your going to sell to the public. You need a dealers license,and anyone that works for you should have a salesmens license. You need not have a mechanic on site, i prefer not to have the overhead. There are plenty of qualified mechanics in any area thats willing to do repairs cheap. This is the cheapest way,UNLESS you are a mechanic yourself. Another suggestion is to become a notory at the same time,this way you can transfer all titles on the spot. If you have to go somewhere else to get the titles transfered it gives the buyer time to rethink his purchase,which we dont want,we want their money...lol. Another person to talk to and aquire is a good body and paint shop....most cars are mechanically sound,they just need a facelift,and this is where you can make fast money. Buy one for a couple hundred dollars, and give it a facelift and resell for 2500-3500 and your on your way to making big bucks quick.
Another option for this business is wholesaling. This is great because you dont have to deal with the public at all,which is where im heading right now. One more option that is a great money maker......."buy here pay here". The biggest bucks and quickest bucks are made on lower income people or people who dont want a car payment. Most people buy cars in the 1500-6500 price range the quickest, most people can get that money or have that money fast,which is what its all about,quick money.
One more thing to look at....Dealer Financing. GREAT money maker. This is where you finance the vehicles yourself,but the catch is you dont use your money....you use the banks....your goin to make some great cash on this if done right. You go to your bank and negotiate some loans at some unreal interest rates,try for 4 or 5 %. Then when you sell a car a finance it,you sell the loan out at 11 or 12 %. This is all negotiated at the time you talk with the bank. Only thing they are concerned with is what interest rate they get,not you.But when you finance cars with the banks loans, have them put the interest rate you made in an account that you will only access in 12 -24 months(which was negotiated with the bank too so they are making money with your money...lol hope im explaining right) just think of the money made just off the interest of these loans...which can be substancial. Oh....as far as needing 30,000.......most dealer auctions have whats called Floor Plan options if you have good credit,which means you use their money to buy the cars and at say 30-60-90 day intervals you pay this money back,which is plenty of time . If you havent sold that car in that time you held on to it tooooo long...lol. OK i talked enough......any questions you can email me at [email protected]. hope ive helped a little an not rambled too much..lol....thanx!

oh...beefybull had some good suggestions,but remember overhead is something you dont want....so alot of the equipment he said is needed really isnt needed or wanted. example..rollback?tow truck...why pay 20,000-50,000 on a good one ,then spend money on tiltle,tax,tags,insurance when this service can be bought way cheaper from someone else. most small dealers might buy 2-5 cars a week,but with a tow truck or roll back,any more than 3 has to make more than one trip....this is where a car carrier service comes in,they can haul those cars in one trip and most likely for the same price as one of your trips.and while they are being hauled, you can be making money somewhere else. like isaid,remember business is all about making money,not spending it. the less you have to buy and have sitting around not making you money the better...ok thanx.

 

[beefybull]

oh...beefybull had some good suggestions,but remember overhead is something you dont want....so alot of the equipment he said is needed really isnt needed or wanted. example..rollback?tow truck...why pay 20,000-50,000 on a good one ,then spend money on tiltle,tax,tags,insurance when this service can be bought way cheaper from someone else. most small dealers might buy 2-5 cars a week,but with a tow truck or roll back,any more than 3 has to make more than one trip....this is where a car carrier service comes in,they can haul those cars in one trip and most likely for the same price as one of your trips.and while they are being hauled, you can be making money somewhere else. like isaid,remember business is all about making money,not spending it. the less you have to buy and have sitting around not making you money the better...ok thanx.

All of those things I listed werent 100% necessary, but a car mover/tow truck or something of your own helps in the long run unless the moving services you spoke of work very fast and do it cheap. What are typical prices for that type of service?