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In Russia for several years there has been a tendency to acquire foreign cars. Moreover, every year the number of car owners only increases. There is no decrease in demand for used and new cars, so you can get real profit if you correctly draw up a business plan for a car dealership and start selling cars personally.
Recommendations that are better to adhere to when opening your own car dealership:
1. It is best to start by selling low-cost cars. With the successful operation of the car dealership, you can start selling more expensive cars or even premium cars.
2. It is best to conclude a contract with an official car supplier. This will greatly facilitate the process of buying and delivering cars to the salon.
3. It is important to diversify the lineup as much as possible. In this case, you can attract more buyers.
4. Now trucks of foreign manufacturers are very popular.
5. A promising activity is the sale of used cars. You might think about how to become a car dealer. You can adopt the European practice of accepting used cars in exchange for new ones with a surcharge. Of course, the percentage of such sales is small (1 to 10), but with the proper preparation of a business plan this can be a good option.
Choosing a car dealership location
Location plays an important role, as well as the selection of an investor who will be interested in opening a car dealership. Many car manufacturers are interested in the fact that, in addition to selling cars, a car dealership will be serviced.
Various options for placing a car dealership:
1. Former fleets. The disadvantage is the high rent (200 - $ 500 per sq. M. With a minimum area of 450 sq. M.).
2. Change the room, which is suitable for the area. Significant material costs will be required (in the region of a million dollars)
3. Building your own auto center. It can be either middle class or made in accordance with modern European standards.
Principles of building a business
A sample business plan of a car dealership will help answer the question: what is the business of car sales built on. In order to open a personal auto center, you can go in 2 ways: buy cars in a free country, or buy cars from Russian importers.
For a car dealership as a business to successfully develop and generate income, it is necessary that the minimum number of cars that need to be sold per month be established. At the same time, there should be 2 times more cars in the warehouse, so that, if necessary, the buyer can get the desired car in the shortest possible time, without wasting time waiting for the car to be delivered.
The income of a car dealership is directly related to sales volumes, as well as to after-sales service. To increase the return on investment, it is worthwhile to sell spare parts, accessories and alarm systems.
You can provide services for tuning and tinting cars and invite bank representatives who will offer customers credit processing on favorable terms, right at the car dealership, without visiting the office. Another plus is the presence of an insurance agent in a car dealership offering to insure a car here.
Where to start your business, if it is associated with the sale of cars
The answer to the question of how to open a car dealership from scratch is rather complicated. To begin with, you need to decide which cars the salon will sell.Here you can go in several ways:
• Buying a franchise. Then you will have to equip the premises in accordance with the necessary norms and rules, they will be negotiated upon purchase. This option is convenient if there is land, or a ready-made room where you can place a car dealership. It is better if they are cars of a widespread brand.
• You need to have a clear idea of what a car dealership is. You can sell new or used cars, if you already have a finished building.
• You can build and open a full service car dealership. You should start by buying land or a finished building.
After it is determined, the direction of activity is determined, it is necessary to calculate its profitability. To do this, it is best to draw up a business plan.
Business Payback Forecasts
The easiest way is to analyze the sales statistics of new and used cars. This will allow the potential car dealership owner to understand: what profit can be expected when doing such a business.
The best profit for dealerships is considered to be 2-3%. The period for which the car dealership will pay off is 4 -5 years. The most quickly paid and profitable is considered to be the sale of used cars, since much lower costs and faster turnover of goods are assumed here.
The components of a successful car sales business
• It is best to start your own business with the sale of cars that are in great demand among buyers. In this case, you do not have to spend a lot of money on an advertising campaign and promotion of a little-known brand.
• When opening a car dealership, you should consider not only selling cars, but also providing services for their repair and maintenance, as well as selling spare parts (especially if a car dealership is selling used cars). In this case, you can get more profit.
• The correct selection of competent and highly qualified personnel is an important point. All employees must have extensive experience in this field. Ideally, it will be former employees of high-class dealerships, because there the staff is trained and knows all the intricacies of the automotive business. With highly qualified personnel, they must be provided with a high salary, so staff turnover can be prevented.
All of the above items will help improve the reputation of the car dealership, and, therefore, attract a large number of buyers.
Cash required to open a car dealership
When you open a dealership, the question does not arise, how much does it cost to open a car dealership, since all the subtleties are prescribed in a franchise. But if you open a complex that offers the sale of used cars, then you need to calculate in advance all the possible costs, namely:
• When starting a business from an open area where several cars that were bought at auctions are offered, the costs will be $ 15,000 - $ 20,000.
• If you purchase or rent a ready-made specialized facility where it is planned to sell more expensive cars that have undergone maintenance and repair, then the costs will be about $ 100,000 - $ 200,000. At the same time, the prestige of the car complex will be significantly higher, which will attract a larger number of buyers, therefore, profit will increase, but along with this, the payback period will increase.
• When you open a car dealership from scratch, investments can reach $ 1,000,000. Large costs are assumed for the purchase of land or premises, interior decoration, the opening of a service station and a store selling necessary spare parts and the price level at which cars will be purchased. In this case, you can engage in the sale of cars of a certain brand, as well as the sale of cars of various manufacturers. Of course, with this option it will be longer payback period, but the profit from such a business is more significant.
You can reduce your own investment when entering into a contractual relationship with the bank. In this case, any of the stages of opening a car dealership can be credited, and customers can also buy cars on credit at a car dealership.
How to promote your business
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car dealership opening [/ caption]
A necessary expense item when opening your own car dealership is advertising. With its help, the auto center will quickly become famous and popular. Advertising is the fastest return on investment.
If a decision is made to sell one brand of car, then the manufacturer can take part of the costs, as this will attract the attention of buyers to their brand of car.
How to call a car dealership is another important issue on which a lot depends. The title should contain the necessary information with which you can attract buyers.
Opening your own car dealership is a costly and time-consuming process. But if you approach this issue professionally, then here you can achieve certain successes. In the future, the car complex may become a popular and attractive place where it will be a pleasure to purchase cars and receive full comprehensive service for a large number of people.
