If you are thinking of starting your own used car dealership there are several factors which you must carefully consider. The basics include performing thorough market research, identifying a prime location and having a good understanding of all the rules and regulations that are relevant to you in your new business venture.
If you get everything spot on, then you could be onto a real gold mine! However, just one mistake could end up being costly. The age-old adage that all publicity is good publicity is simply not true… especially in a market as competitive as the used car market.
So, for argument’s sake, let’s say that you’ve already done your market research, you know the rules and regulations like the back of your hand, and you’ve already got yourself an excellent location… Now you just need inventory, and we mean quality inventory, no one is buying rubbish anymore, everyone is just too tuned in to fall for the old sales tricks. At this point, it is essential to find out everything you can about your prospective inventory.
Buy smart, sell smarter
The need to buy before you sell is obvious, after all, if you don’t own it, you can’t legally sell it!
When it comes to purchasing your inventory there are several factors to consider, each of which can be as important as the last. For example, if you are seemingly getting a great deal, only to find that you unknowingly bought several cars that had previously been in an accident, you could easily to stung with exorbitant insurance and repair costs, and that’s before you’ve even made a sale!
You can find out more about the risks involved with buying a car, check this “has my car been in an accident?”
Don’t pay over the odds
Obviously, whether a car has been in an accident or not, you’ll want to sure that you’re paying a fair market value. Buying a used car at above market value will inevitably lead to you making a loss on each car you sell, and that’s without things such as rent for your location and other running costs factored in.
If you are looking to ensure that you pay a fair price, or even ensure a real bargain isn’t too good to be true, you should get an independent valuation, such as those you get when you run a comprehensive background check.
Bring the price down
Let’s say that you’ve seen a seemingly reliable, desirable, and affordable car. But, before you put an offer in, you run a background check. The check identifies that despite the seller’s claims, the car does not have a full MOT history and that it was previously an insurance write-off car check.
Now, these are not reasons to not buy the car, but as the seller didn’t inform you right away you can now make a lowball offer which they will pretty much have to accept. So, you pick up the car for way below the asking price, and as long as you make the prospective buyer fully aware and reassure them that everything is fine, you will still get a good price.
Buying below market value and selling for a fair price means more profit for you!
These are just some of the many reasons to run a full car background check if you’re starting a used car dealership, and Reg Car Checks offer one of the most comprehensive car checks on the market.