How To Run A Successful Used Car Business | Innovation Tech
In the past few years, Israel has slowly climbed the ladder to becoming one of the top three largest auto markets in the Middle East. You don’t have to be a car enthusiast in order to run a successful used car business in Israel. Almost anyone can do it with a little bit of effort. This effort is mostly financial, especially in the beginning. In order to start your first used car business you need to save up some cash beforehand. Sure, it works with bank loans or credit lines as well but it’s not going to be as profitable.
As I’ve said before, anyone can run a successful used car business, even if they know little about the actual cars they’re going to flip. If you’re in such a position, the first thing you need is a partner. Ideally, her or she should know a few things about cars. You will be the cash supplier while your partner will be the one who takes care of buying, repairing, and selling the vehicle.
Thanks to today’s technology and to the fact that we’re connected to information 24/7 if we have a smartphone, searching for used cars is a walk in the park. However, searching for the right car will take a bit more effort. The goal is to buy low and sell high while taking into consideration the repairs that need to be done before the actual sell.
Choosing The Right Partner
In an interview, Dale Gillespie from Jennings Motor Group said that “when picking a partner, you should make sure that you pick someone you can trust”. Your partner can be a family member, a friend, or even someone from work. As long as the person is trustworthy, you should be set. As an extra precautionary step, you should begin your business partnership with a few small deals. These would be less taxing on your finances if they were to go wrong or if the partnership would prove to be unsuccessful.
The second most important aspect to consider is your partner’s personality. He or she could be the most insightful and knowledgeable person when it comes to cars but he could lack budgeting or sales skills, or he could be looking to scam you. This is why it’s important to start with cheap cars. You’ll be testing your partnership more than your ability to make money out of your investments.
It goes without saying that your partner must know his way around cars, new or used. A mechanically inclined partner would be a good choice. Moreover, someone who understands the used car market could be of great help for your business, especially in the beginning. Look for someone who’s comfortable making sales. There will be a lot of calls, meetings, and negotiations being done on your behalf. Someone who’s comfortable with people will be a great asset for your new company.
Handling The Legal Aspects
In order to determine the legality of your business, you will have to check with your regional motor vehicles department. Each country and each US state has a different set of laws and regulations when it comes to selling used cars. Once you reach a certain number of sales per year, you will need a license to continue to do business.
You could also operate without a license. However, your business would be fairly limited as the number of cars you can sell without a license is very low in some regions. Luckily, every region should have a designated licensing agency that can offer you more information.