New Car Dealership Of 2016

new car dealers can be very lucrative and profitable business, but they also require a lot of investment and work. Dealerships are usually open at least 10 hours a day 5-6 days a week. Car dealers must carry a large inventory of cars so that people have many makes and models of different colors to choose. And car dealers are highly regulated and must follow a series of federal, state and local laws. Before starting a new car dealership, make sure you are willing to invest the time and money to make it a success.

Starting a new car dealer in 2016
Come up with a business plan. This should include things like start-up and monthly budgets, hours of operation, marketing and align yourself manufacturer.

Increase of capital and investment. Car dealers need a lot of capital to start. For example, General Motors requires a minimum initial investment of $ 400,000. If you are not rich enough to pay the costs associated with a broker or you do not have enough assets to take advantage of the funding you need, look for investors. If you have a solid business plan, your dealer will appeal to those looking for a hands-off investment that has the potential for higher returns.

Find a location. You can find land to build a dealership or look for land with an existing building that will meet your needs. You will need several acres to be able to answer your inventory of new cars. A good possibility is a former car dealership that went bankrupt; However, make sure that the reason why he left the company was not because of its location. Also, make sure the area you choose is close to other car dealerships, but not close to the dealers who sell the same brands you sell. And check with your planning department and local zoning to ensure that the concessionaire complies with all local zoning codes.

Get a new franchise car dealership. The best way to do this would be to take over an existing franchise from a broker who wants to retire or leave the company. You can also check the websites of dealers for information on how to acquire a franchise. There are also franchised automotive dealers to companies that might consider partnering with you if they are not present in your area.

Take care of all requirements and licensing regulations. Incorporate your business and check with your state department of motor vehicles to take care of all the requirements for the granting of licenses specific to your state. Apply for a sales tax license and if you employ people, check with your state department of labor needs and withholding tax.

Make arrangements with finance companies. While potential buyers can get auto loans through local banks and credit unions, you put yourself in a better position to make a sale if you can offer dealer financing. This can be done through local and national banks or through finance companies.

Hire a staff. You will need several salespeople, a sales manager, a finance staff and support people. In addition, most new car dealers also offer vehicle service, so you'll need to hire a staff for this part of the business as well. Each automaker will likely be its own training program, but there are additional training programs offered by industry groups such as the National Association of Automobile Dealers.
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How to Start a New Car Dealership.