How do I start my own car lot?
**As written for The Safe Driver.
If you have a passion for automobiles and have always wanted to run your own business, then starting a car lot might be the perfect path.
People will always need cars, whether they’re flying or not, so your product is always going to be needed. Here are some steps you can take if you want to start your own car lot.
Decide on a new or used lot
The first step is to figure out if you want to deal in new or used cars. This is important for the simple fact that used cars cost less than new cars. If you decide to go the new car route, then you’re going to initially need more money to open your lot.
If you decide to go the used route, then your options can open up more. After all, you can look up “salvage cars for sale near me” and bid on cars that are typically cheaper than what they’re actually worth/valued at. This is, of course, just one option for finding used cars that you can then sell.
While there are pros and cons for both new and used cars, keep in mind that Kelly Blue Book places the average cost of a new car at $37,000, while used cars are $20,000 on average.
Write a business plan
Writing a business plan is a valuable step for any entrepreneur to understand their business, target audience, brand, etc. But it’s especially important if you want to own a car lot.
This type of business has a lot of startup costs, and you might need financing as a result. A good business plan can help you secure a bank loan or investors. It will help set you up for success and let you know how much money (and time) it will take before you’re making a profit.
Licensing, bonds, rules, regulations, etc.
You can’t just decide to open a car lot and start selling cars. For starters, you’ll need a dealer’s license to sell cars. Bonds, insurance, rules, laws, and regulations also come into play and you have to find out what’s required to run a car lot in your state.
Find the right location
Finding the perfect location isn’t always as easy as choosing a place that catches your eye. As stated above, have to follow rules, laws, and regulations. As an example, you might have to be a certain distance away from the closest car dealership to open your shop.
Nonetheless, you need to find a location that sets you up for success. Ideally, you want one that’s simple to get to and can also be easily spotted on main roads. It should be a location that many potential customers drive or walk by.
Set up social media networks and digital marketing strategies
Your car lot is open (or close to opening), but if you want customers, now you have to tell people about it. An effective way to do this is by setting up social media accounts and incorporating digital marketing strategies. You can run Facebook ads and reach your target audience (locally or nationally) from the convenience of your own home.
Another strategy is to buy a targeted email list and use email marketing techniques to lure people to your lot. One way to do that is to send out an email blast and tell people about your lot and grand opening. You can also send an email with a discount or promo code.
There are many steps you need to take to open a car lot, and hopefully the five listed above can help you start your dream business.