First Post New Dealer in Oregon!

[Old Truck Driver]

Hello there everyone, new independent in NW, Oregon. First time running a dealership, drove owner operator truck for the last ten years and had a general contractor license before that for about 20 years. I was always addicted to auctions, and that’s where I bought all the stuff for my previous businesses. It really helped when I was finally able to go to dealer only auctions in the Portland area. Although my auction anxiety was low, the auction prices always seem high. Been sourcing from everywhere possible, but I only sell on CL or from Drive-by sales, and I do join specific FB group sites to sell stuff on because they’ve already brought a lot of buyers to one spot, and it’s free to list. I don’t really have a website other than FB, maybe some day? Sorry I’m old school, don’t pick on me I just got my first smart phone 2 years ago lol. Just a nice clean little 100’x50’ lot but it was already paved and has a very nice little office. There’s 14 verifiable spots but I’ve never had more than 12. I wanted to get flooring but was afraid of the added overhead and cost when I was just starting. I’ve averaged about 4 car sales a month all year long. I’m right on highway 101 with a 5,000+ traffic count a day. All of my operating costs combined are about $2,700-3k a month+/-?. It’s a small farming town and 90% of my sales are from Drive-by, a lot of my customers hate computers and hate Portland worse. There’s only 3 dealerships in town and one is a new ford dealership that doesn’t sell many affordable daily driver cars and trucks. The other dealership in town has been there for 25 years and is CUDL affiliated and sells a lot of the same things I do, CUDL turned me down said I wasn’t big enough yet. Just been running it with around 60-70k in inventory and things have went well this year. Trying not to do all the stuff I hate about the big box stores, prices are listed in every window of every car, any known problems that haven’t been addressed yet are on that paper. Check engine lights are only erased when fixed. I’m very low pressure sales and only talk to people about the cars they come in to look at. I don’t bug people after they leave, I just didn’t like it when it was done to me so I don’t do it. I don’t offer financing yet of any kind, I have only sent people with titles and haven’t done any title processing yet(Oregon DMV makes dealers mail it in, and put the $hammer down on dealers with big fines that don’t get it perfect, not ready for that yet). I don’t add any additional fees for paperwork at the sale, and I give free 10 trip permits with every sale, they only cost me $15 and people feel good about it. Have looked at reyrey and dealertrac, but I just don’t see it helping me yet how small I am? I’m an older trucker and very thick skinned, in fact I think it’s impossible to hurt my feelings lol. Running a one person independent car lot, I feel more like a detailer than a car salesman though lol. I’m soooo tired of dog hair, smoke and sand lol, I don’t offer squat for trade when those dirty pigs come in.

 

[Tallcool1]

Hi Marvin

Welcome to Dealer Refresh. I am in Nebraska and also an Independent Dealer.

I will go through your post quickly and give a little feedback.

You can get a Website for $99/month and some are even cheaper. I will find out which ones that would be. I don't remember off hand. The benefit of a website is more than initially comes to mind. Imagine being able to call a guy that stopped last week looking for something that you didn't have. You call him back and say "ya, just go to my website and you can see 12 pictures of this vehicle that is exactly what you are looking for". Or say that someone likes you and the way that you run your business but you just don't have what they need. Now they can watch your website and when they see it they can come in and look.

Look at Frazer Computing for a computer system. It will cost you about $65/mo, and it will do your accounting on top of just type car deal paperwork. This is the best $65 you can ever spend. You will save that in tax preparation fees at year end.

There is absolutely nothing wrong with calling a customer back a week later. You don't have to hound the piss out of them if you don't want to. You could however let them know that you care about them with a quick call a week later to see if they got something bought. Your demeanor is the best thing that you have going for you. We all say that we are different. You ACTUALLY are! Prove it to a customer by calling them back.

Get a Google My Business set up. You can post your cars on there, and people will be able to find you. It is free Marvin. You could maybe pay someone a nominal amount to set it up for you if you want to. I am not sure about that.

You are onto something here Marvin. You just have to tell the world!

 

[Alex Snyder]

and welcome to DealerRefresh! And welcome to dealership ownership. Super exciting!!!

 

[Marc Lavoie]

Welcome! Ask questions, don't be shy!! Happy New Year

 

[Todd Thompson]

At 4 cars per month currently its a bit of a hobby at this point. as you can sell that many on your driveway with any drive by traffic at all.

I suspect as you ramp up you'll need to get real serious about taking those dirty trades (there is a butt for every seat), offering some kind of financing/warranty and so on. On the other hand, may simply find that its a great part-time gig and doesn't have to be anything more? Nothing wrong with that either.

The transition from a low pressure (not putting my kids through college with what I earn at the lot, so don't really care) to a bonafide dealer with a couple employees, HR hassles, firing/hiring, accounting, aging inventory and so on is a big leap. Not for the faint of heart.

My opinion is make sure you know what you really want to be and lay the foundation. "Guy curbing a few cars keeping busy", or "small used car dealer", with all the good, bad and ugly.

Just my 2bits. Lots of respect for the effort though.

 

[Tallcool1]

At 4 cars per month currently its a bit of a hobby at this point. as you can sell that many on your driveway with any drive by traffic at all.

I suspect as you ramp up you'll need to get real serious about taking those dirty trades (there is a butt for every seat), offering some kind of financing/warranty and so on. On the other hand, may simply find that its a great part-time gig and doesn't have to be anything more? Nothing wrong with that either.

The transition from a low pressure (not putting my kids through college with what I earn at the lot, so don't really care) to a bonafide dealer with a couple employees, HR hassles, firing/hiring, accounting, aging inventory and so on is a big leap. Not for the faint of heart.

My opinion is make sure you know what you really want to be and lay the foundation. "Guy curbing a few cars keeping busy", or "small used car dealer", with all the good, bad and ugly.

Just my 2bits. Lots of respect for the effort though.

Good advice. I have had many people over the years wanting to move from curbing to being a car dealer. They want to ask questions and figure out what it takes to be an actual dealer. None of them made the jump.

 

[willandre]

@Old Truck Driver congrats on taking the plunge. As some have suggested, a website is not a bad idea, but I'd suggest something simpler than a site with inventory - etc. Having read your post, I'd say that even the most basic versions might be overwhelming with the need for upkeep and current inventory. A website that's full of out-of-date inventory can actually have a worse bgrand impact than say just an informational page with your contact information. Can I ask how you communicate with customers currently? Is it phone? Email?