new Start up

[liquidmi]

I am thinking of starting a used car dealership part time for now. I plan on starting small and carefully with little risk.
My plan is get my license, small location and bonds ect set up. Then buy a couple cars from Manhiem and Adasa ect.
I will then sell them online with Facebook, Criagslist and other apps. I have 80k or more I can use for this
I plan on keeping my day job and selling by appointment only at start up to minimize risk.

I have 25 years body shop experience and a good amount of mechanic experience.
I can fix most things on a car if need be.
I live in Fort Myers, Florida with a strong economy and very over priced dealers all around me.

I would love some input and or advice on this business plan.

 

[Tallcool1]

I am thinking of starting a used car dealership part time for now. I plan on starting small and carefully with little risk.
My plan is get my license, small location and bonds ect set up. Then buy a couple cars from Manhiem and Adasa ect.
I will then sell them online with Facebook, Criagslist and other apps. I have 80k or more I can use for this
I plan on keeping my day job and selling by appointment only at start up to minimize risk.

I have 25 years body shop experience and a good amount of mechanic experience.
I can fix most things on a car if need be.
I live in Fort Myers, Florida with a strong economy and very over priced dealers all around me.

I would love some input and or advice on this business plan.

You have a good plan, right up to the part where you said "and very overpriced dealers all around me". This (2019) is perhaps the most aggressive pricing era in the history of the automobile business. I am by no means being critical of you or your business idea. I would strongly suggest you study your market very closely, and try to gain a good understanding of wholesale values in your area. Unless your plan is to buy fixer upper vehicles and provide the sweat equity on the reconditioning, I am afraid that you are underestimating the strength of your market.

I wish I had the ability to do the mechanical reconditioning like you have. You can make a ton of money by eliminating that part of the recon process.

Good luck and keep me posted!

 

[liquidmi]

You have a good plan, right up to the part where you said "and very overpriced dealers all around me". This (2019) is perhaps the most aggressive pricing era in the history of the automobile business. I am by no means being critical of you or your business idea. I would strongly suggest you study your market very closely, and try to gain a good understanding of wholesale values in your area. Unless your plan is to buy fixer upper vehicles and provide the sweat equity on the reconditioning, I am afraid that you are underestimating the strength of your market.

I wish I had the ability to do the mechanical reconditioning like you have. You can make a ton of money by eliminating that part of the recon process.

Good luck and keep me posted!

Thank you for the insight. My plan would be to move cars quickly and beat the competition. I am however open to learn and make money. Thanks again.

 

[Tallcool1]

That is the plan that everyone has! It's a very important part of the equation. Just start with low dollar vehicles.

 

[Carluminati]

Your success really depend on whether you follow up with the customers intermediately with any issues they have up to 6 months after they purchased the vehicle. If you can operate 6-month 6,000 mile power drain warranty, you might have something to help supplement your income. As a real dealer, someone who works for among the top 15 Chevy dealers in the country, Price is pretty important. Taking care of the customers when they have an issue in the intermediate term. Well that either make or break you. Because Google reviews will tell everybody if you're real and or if you're not. Best attack is to jump in the deep end... And hope you float.

 

[MarieDGarzai]

I fully agree if customer care is high and your prices are high I think you are on the right track