If you have a genuine passion for cars and some expertise on which models are in demand, then you could have what it takes to succeed as a car dealer. It's a sector that is booming and constantly evolving. It's also a very vast and potentially lucrative field that you can enter from different angles. Some will allow you to cut on initial costs, while others will allow you to start on the high gear and hit the floor running.
If you are going to be operating in the buying, selling or repairing of vehicles in a commercial capacity, you will need to consider motor trade insurance (this website can help). Motor trade insurance will protect your business; covering personal accidents and your stock, and allow you to drive vehicles in your possession on the roads
Here are a few ways that you can get into the car trading business.
Become a Franchisee
Maybe you have the idea of starting your own used car dealership, but there are many benefits to being a franchisee that you shouldn't overlook; for one, you'll have much less trouble making a name and getting clients at the beginning if you go with a healthy franchise that is in demand in your market. You'll have the help of their marketing machine, and their goal will be for you to succeed. You won't have to work on brand recognition and will be able to get access to prime inventory.
However, you will have to be able to prove that you have the resources and talent to run a franchise. Some franchises will demand that you work for them in some capacity before you can apply. You'll also have to be able to access a lot of capital to start one.
On the other hand, there's nothing stopping you from going it alone. You'll have to hustle a little bit more for your inventory, but you could make a lot of money if you know where to look. Some people will choose to stock inventory from auctions, for instance, whereas others will look for salvageable vehicles, and others will use the dealership to push their repair shop.
One of the biggest benefits of going independent is that there is no minimal stock to own, and you can start on a reasonably small budget.
However, you still need to stay on top of your overheads. For example, you will need motor trade insurance if you're going to be handling other people's cars, and it could end up making a big difference to your bottom line.
We suggest that you head to Quotezone for a comparison of the best motor trade insurance policies available. They will allow you to compare quotes from some of the best insurance providers in the country in minutes. All you'll need to do is fill in one simple form, and they'll allow you to compare coverage and quotes at the touch of a button. This will allow you to get a better idea of what you can expect to pay and avoid surprises later on.
You also have the option of buying a few vehicles and testing the waters this way. You are allowed to sell as many as 7 vehicles per year from your property before it is categorised as a commercial venture. You can try to find gems that have minor issues you can repair yourself and see if you have the flair to consistently make great deals. You'll then be able to reinvest your profits into something bigger.
As you can see, there are tons of ways that you can get in the car dealing business. Make sure that you come prepared, consider all the options, and ensure that you understand your product and market inside and out before you start.