Looking to open Independent Dealership

[Alexander Lau]

Looks like Wells Fargo is out of the game.

Wells Fargo, worried about defaults, stops making loans to most independent car dealerships
https://www.cnbc.com/2020/06/02/wel...ing-loans-to-independent-car-dealerships.html

Wells Fargo, one of the biggest lenders for new and used car purchases in the U.S., sent letters to hundreds of independent auto dealerships last month telling them that the San Francisco-based company was dropping them as a customer, according to people with knowledge of the situation.

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10% of the 11K dealers Wells works with.

 

[NIOMARVIN83]

Starting an independent dealership is a significant decision, especially when transitioning from a different career. Your plan to use $150k for setting up an office, getting a dealer license, building a website, and purchasing initial inventory is a good start. Focusing on mid to high mileage luxury vehicles and lifted Jeeps and trucks in the DFW area seems like a viable niche.

For DMS software, consider cloud-based options like DealerBuilt DMS, which offers good third-party integration. Research thoroughly to pick a vendor that suits your specific needs.

Regarding purchasing on credit or floor planning, leveraging a line of credit can help maintain liquidity. With your strong credit score, this could be a viable option for a few vehicles.

Using $50k for living expenses is practical, especially since your wife's income can support your household. However, ensure you have enough funds to sustain the business during its initial phase.

Since you're focusing on internet sales and specific vehicle types, "tote the note" might not align with your business model. However, it's good to be open to different financing methods as the business evolves.

Networking with successful dealership owners in DFW and seeking mentorship can be immensely beneficial. Also, consider joining forums where dealers discuss industry specifics. Remember, the automotive business can be competitive and complex, so thorough preparation and continuous learning are key to success.

 

[Retail My Ride]

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