Used Car Sales Business

Why Start a Used Car Dealership?

I guess you would have imagined why most people who purchase cars for the first time usually purchase used car? The answer is simple and straightforward. This is so because the prices of brand new cars are usually beyond the reach of the average person who wants to own a car hence the booming market for used cars in the United States of America and of course in most parts of the world especially in developing countries where they are not known for car manufacturing.

Used car dealership business as the time implies is all about selling used cars to willing buyers. Aside from the fact that the owners of used car dealership shops are known for selling used cars, they also go out of their way to source for sellers who wants to sell their cars. They buy used car at a favorable price and then re – sell at a good price that guarantees profits for them. In a nutshell, they are in the business of buying and selling used cars.

What Does It Take to Start a Used Car Dealership Successfully?

One thing about used car dealership business just like consignment business, you can start this business without money and still make profits. This is so because you can convince people who are looking towards selling their used cars to drop it with while you help them source for buyers and enter an agreement to make a certain percentage from the deal once you are able to sell – off the car.

The truth is that if you are trustworthy and dependable, it will be easier for people to trust you with their used car and wait while you help them sell. If the deal pulls out, it will be a win – win for both parties. You will make your profits and the owner of the car will make money off his or her used car. In other words you would be automatically helping them get rid of the used car they do not want and in turn make your profit.

No doubt starting a used car dealership business can be interesting at the same time rewarding especially if you situate your car dealership shop in strategic locations where you can easily attract people with low income who can’t afford brand new cars. The fact that fairly used cars are highly affordable and far cheaper than brand new cars makes used car dealership business a thriving and profitable business.

One good thing about starting a used car dealership business is that if you are diligent enough and if you have good business / marketing strategies, you can build the business from just one outlet to numerous outlets across different cities in the United States of America.

Lastly, starting a used car dealership business just like starting any other business might not be entirely easy to start, but one thing is certain, it is a straight – forward business that can generate huge and steady profits if well positioned and properly managed.

People often think that starting this type of business does not require any professional skills; in as much as it is true, you would still need a good knowledge of automobiles, you would still need good business skills, bargaining skills and of course customer services skills if indeed you want to build a profitable business.

List of Niche ideas Within the Car Dealership That You Can Specialize in

These are some of the niche ideas within the used car dealership industry that an entrepreneur who is looking towards starting the business can specialize in;

  • Bricks and Mortars Used Cars Dealership Shop
  • Online Used Cars Dealership Shop
  • Used Luxury Cars Dealership Business
  • Multi – brand and multi – maker car dealers

The Level of Competition in the Automobile Sales Industry

The fact that an entrepreneur without start – up capital can actually stand as a middle man in the sale of used cars makes the industry to be open to all and sundry hence the stiffer competition in the industry.

You can run this type of business without a physical shop; online shop will cut it for you. As a matter of fact, online used car dealership shops are more thriving than bricks and mortars used car dealership. This is so because it is easier for customers to review prices and model of cars online before eventually making their purchase.

The truth is that, despite the level of competition in the used car dealership industry, entrepreneurs who are running the business are still making their profits and some of them generate as high as 30 percent turnover rate especially those that are well positioned and over time have been able to secure steady sources for neatly used cars.

Economic Analysis

Starting a used car dealership business just like starting any other business requires that you conduct your feasibility studies and market survey so as to get your economic analysis right. As a matter of fact, you just have to get your economic analysis right if your intention of building the business is to generate profits, grow the business and perhaps expand the business beyond one location to other locations within the United States and other cities in the world.

When conducting economic analysis for your used car dealership business, you have to critically examine these key factors; place, product, pricing, and promotion. As a matter of fact, you would have to continue to review these key factors at regular interval while running your used cars dealership business.

Starting a Used Car Dealership Business – The Marketing Plan

  • Marketing ideas and strategies for a car dealership business

Running a business requires that you to be proactive when it comes to marketing your goods or services. If you choose to run a used car dealership business, you must go all out to employ strategies that will help you attract customers or else you will likely struggle with the business.

These are some of the marketing ideas and strategies that you can adopt for your used car dealership business;

  • Direct Marketing
  • Sponsor TV and Radio Programs
  • Erect your Billboards in Strategic locations around the city
  • Making use of sales Agents and sales reps
  • Online Marketing (via your official website / online store, social media platforms and blog et al)
  • Referral Marketing
  • Engage in road show within the community where your used car dealership is located.
  • List your used car dealership business in local directory / yellow pages


If you plan to start your own business and want to more details about business strategy or need Business Analyst
Please contact at info@shishirkant.com or +91-8299371442 (Whatsapp)
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