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New Dealer Looking for Any Help

Jun 23, 2021
1
3
Awards
1
First Name
Hamza
hello to all,

I am a new to the business independent dealer and I am looking any help or tips on how to run a successful dealership. I really want to focus on buy here pay here, just because I've heard that is how you can maximize profits. But I am unsure we are able to go down that road with the budget we have. I am considering selling our contracts, but again, I am unsure if that is the best route to take. We currently try to focus on cars between 5k-13k, but the issue we are having is finding quality inventory. Being inexperienced at buying at auctions, I've unfortunately purchased some cars with some major issues. And again I'm unsure of weather to cut our losses and take them back to the auction, or ride it out, and maybe break even. Also, I feels as though I am being bombarded by companies that swear we need them to be successful, and everyone just wants your money, and again I'm unsure of how true that is.

Even though all that sounds super depressing, we really are super excited to be in this business, and are enjoying it so far. I know its a long and bumpy road ahead but we are grateful to be here.

Yea so, if anyone has anything for me at all, it would be greatly appreciated.
 

ChrisR

Boss
Oct 12, 2015
389
362
Awards
1
First Name
Christian
Sell the cars that have issues with transparency. Disclose the issues & price accordingly. If you can get a customer, referral, repeat business out of it, that's a bonus. Of course, the goal is to make money on as many of your deals as possible, however, there are times that living by the philosophy that the first loss is the best loss (ie just rip the band aid off, and get the car off the books ASAP).
 

Tallcool1

Boss
Mar 17, 2014
442
279
Awards
1
First Name
Clint
Without knowing the specifics of the few vehicles you have with some issues, my opinion would be to recondition them and retail out. You have the chance to get a trade in if you retail out. You can't do that if you wholesale them.
 
Jul 26, 2021
1
0
First Name
Thad
hello to all,

I am a new to the business independent dealer and I am looking any help or tips on how to run a successful dealership. I really want to focus on buy here pay here, just because I've heard that is how you can maximize profits. But I am unsure we are able to go down that road with the budget we have. I am considering selling our contracts, but again, I am unsure if that is the best route to take. We currently try to focus on cars between 5k-13k, but the issue we are having is finding quality inventory. Being inexperienced at buying at auctions, I've unfortunately purchased some cars with some major issues. And again I'm unsure of weather to cut our losses and take them back to the auction, or ride it out, and maybe break even. Also, I feels as though I am being bombarded by companies that swear we need them to be successful, and everyone just wants your money, and again I'm unsure of how true that is.

Even though all that sounds super depressing, we really are super excited to be in this business, and are enjoying it so far. I know its a long and bumpy road ahead but we are grateful to be here.

Yea so, if anyone has anything for me at all, it would be greatly appreciated.
Hello,

First of all congrats on starting your dealership. That is very exciting. Car dealerships in general are the most solicited business in the country. I'm sure you have been pitched a new widget that will cuts costs, increase profits and optimize your time. To be fair there are some great products out there that do truly help. It just depends on your specific dealership needs. As auctions go I understand how overwhelming it can be, they are designed to be that way, loud, confusing , and fast. Here is my advice, (take it for what is worth) There are a lot of options out there Adesa, Manheim, independent brick and mortar auctions are good because you get to touch and inspect for yourself, CR scores are usually inconsistent and in my opinion over done with PDR and light scratches. These light cosmetic conditions typically don't impact on the selling price of the vehicle. The monetary difference between 3.4 CR. and 3.9 CR is anyone's guess, So I wouldn't solely rely a CR score determine a vehicles value. I have purchase MANY 2.5 CR's that have been great cars that required little cosmetic repairs and sold quickly with nice margin. The online auctions have their advantages as well, some of the national auctions are ACV, Carsker Auto Auction, Back Lot just to name a few. Here you have more control over time, research, and most have really good pictures giving you a good buying and Some of the online auctions have restrictions on who can sell, some have probation periods before you can and I think most of them require an inspection and agreement on floors. Carsker is the only one I can think of that lets independents buy and sell right off the bat. Finding cars right now can be a nightmare I would sign up for all the auctions you can to see what is out there. Hope this helps, Good luck