Serious questions about starting a car dealership...
Discussion
Assume I have a site, assume I'm aware of the tax implications etc and I just want to find out the dynamics of opening a dealership.
Ok, I get the idea that you buy cheap and sell for a fair price to cover your overheads and make a profit, but what margins are typical in the industry?
How do dealers finance their stock?
How would you go about getting a franchise from a manufacturer?
I'm thinking of specialising in the smaller prestige market, with affordable engine sizes. BMW 3 Series, Audi A4, VW Golf Gti, MINI's etc... What are your opinions on my choice of market to start with?
Is there a secret handshake required to source p/exes from other dealers (Thinking do a deal with the local BMW dealer to lift any BMW swapper he gets in for trade money plus £100 or something)?
Excuse the abruptness of my questions
Ok, I get the idea that you buy cheap and sell for a fair price to cover your overheads and make a profit, but what margins are typical in the industry?
How do dealers finance their stock?
How would you go about getting a franchise from a manufacturer?
I'm thinking of specialising in the smaller prestige market, with affordable engine sizes. BMW 3 Series, Audi A4, VW Golf Gti, MINI's etc... What are your opinions on my choice of market to start with?
Is there a secret handshake required to source p/exes from other dealers (Thinking do a deal with the local BMW dealer to lift any BMW swapper he gets in for trade money plus £100 or something)?
Excuse the abruptness of my questions
You're very very unlikely to get a franchised dealers trade ins unless you're related to the owner of one.
As for financing stock, most dealers do it from their own back pockets, you might get finance for some of it but its unlikely unless you put your house or other assets on the line. If you've no experience of the motor trade then its even less likely.
As for financing stock, most dealers do it from their own back pockets, you might get finance for some of it but its unlikely unless you put your house or other assets on the line. If you've no experience of the motor trade then its even less likely.
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