How To Become An Auto Dealer

How to Become an Auto Dealer

by

Neal Ashman

Being an auto dealer requires vigor, determination, investment of money and time as well as a sharp mind. However all the hard work that will be put in will ultimately result in great profits? Car dealership is operable in several different approaches; these include business of wholesale cars, investing in an already successful auto franchise branch or purchasing/selling wholesale cars.

Anybody can become an auto dealer – this is a profession that does not require any educational background, however some technical know-how will always come handy. Here are some easy steps for launching yourself in the auto dealership business: 1. Every advancement in business will cost you money, thus it is advised to save up as much cash as you can. Costs of running the business can go as high as $300,000. 2. It is important to figure out the scale of your business. This helps in taking out an estimate for the cost of running the business. 3. It is extremely important to obtain a car dealer’s license. Licensing rules and regulations differ from state to state, so follow up accordingly. Obtaining a license might require you to take an exam or taking a relevant course. 4. Do your homework regarding running a business; this may include deciding upon accounting, marketing, management, inventory and record keeping strategies. 5. Automotive dealership has many facets – choose which one you would like to opt for. Decide how you will market your business venture and whether the affair will be handled by you alone or there is a need to hire employees. 6. Pen down a formal business plan on paper once you have decided your dealership idea. 7. Choosing a perfect location is crucial for you. Once decided, you will need a zoning verification letter to continue establishing your auto dealership business. Location can be a simple garage or a high end showroom; it all depends on your budget. 8. Get your surety bond after completing the verification of the location. A surety bond will cost about $10,000. 9. Get a business license once you have chosen a name for your business venture. In addition there are various classes of dealership registration, these include: — General dealership: buying, selling and leasing of both new and used cars. — General dealership for used vehicles specifically — Wholesaler registration: selling vehicles to other registered dealers. — Exporting of automotive vehicles. — Broker dealership (vehicle trade). Choose which one to opt for; there might be more categories if licensing in your state or area. If you are having problem in investing too much into dealership, you can always choose the auto service aspect. Providing garage services along with dealership can also be a great idea for those with an established setup; this helps in making more profit. It is important to realize that this venture will not be a success unless you put in all your hard work and dedication into it. If you strive for it you will definitely get the fruits of your labor.

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