Lainey

Talk to folks in the business first.....the car business is a tough one.

My +1's former employer sold his new car franchise and is selling used cars. Rick spoke to him the other day and the guy is not doing well at all. There are used car dealers on every block in some areas. Maybe if, as Bass suggested, you focus on a certain area of the market it would be to your advantage.

Not trying to discourage you or anyone from striking out on their own, but you must do LOTS lots of homework before putting your hard earned money into any business.

03silver2000

Yah, my girlfriends father owns a dealership in Seekonk,Mass I have talked to him about it alot, I have gotten most info I need from him, I just like to see what others opinions are and any tips or advice that could be had!

boltonblue

The first question I would ask is what would differentiate your business from the pack?

Used cars are a commodity and your making money by beating the spread.
There are many many buyers out there competing with you even if your buying at wholesale.

So it would seem the ability successfully evaluate vehicles and maintain market pricing knowledge.
Do you know how to sell?
The ability to move our inventory will be based on your smile.
Is that a skill you possess?

The next question I would be concerned with is downside liability for vehicle defects.
What happens when you have to eat the lemon.
What will insurance cost be for liability of fatalities that occur when one of your vehicles is involved in a crash.
Even if the car was perfect you can go through an immense sum of money defending yourself legally.
So the side note is you need to incorporate to isolate the business entity from your personal assets so you don't get wiped out.

get real legal advice on that.

Location, Location, Location.
getting a site where you can run your business will be subject to zoning restrictions.

jtpassat

good luck - in this economy the used car business is probably the toughest to get involved in considering no one is even thinking about buying cars. not to mention that new cars are almost as cheap as used with all the incentives and rebates being handed out.

you really need to figure out how to make yourself stand out from the rest of the pack.

LazyProfessor

And financing - banks are not buying with crappy collateral.

PsychoBen

Borrowing is not a bad thing to start or grow a business. You don't want to tightrope on cash flow. Budget your cash need for the first 6 months of operation and then multiple that at least 2. No matter what business you are in, there are always unforeseen expenses.

RossoS2K

I have been involved with my family biz now for almost 20 years...Im 35 now.
My situation is much different than most here. Listen to the advice here, lots of good people here.

ScottyBallistic

LOL , I always thought you were older than I ...

03silver2000

Thanks for the information that is coming in here, you are def. giving me some good responses, as to the economy being bad to start a car business I am aware of this, I forgot to mention that I do not plan on opening my business right now. I am 19 and do not want to open my business until I am 100 percent ready, and out of debt with my car payments and have alot of money saved up. I just am the type of person who always look 100percent of the way into things before I do them and I would like to know anything and everything I can!
Thank you guys, if you can keep any info coming!

Lainey

Cheer up, Scott. I'm older than you by a few years, if it helps you feel better.

03silver....at 19 you are an ambitious young man.