Thoughts on small town car dealership


hardinflash
11-24-2009, 06:16 AM
I'm new to this forum but have had an idea for a while to start a small car dealership dealing in only low end used vehicles. The reason only low end used vehicles is #1 my budget and #2 the majority of the population in the area is low income and many of the people have poor credit so I'm sure if I go through with the idea I will need to run some in house financing as well.

The town has around 3k people with another 1500 or so in the surrounding area just in case anyone was wondering.

My question for the community is that I am wondering if anyone has done this before and what types of issues they have had? Was it successful? Was it a waste of time? Or if you possibly have any ideas of your own you are willing to share.

MagicRat
11-25-2009, 12:53 AM
Get some books on running a small business. You need to understand how to predict potential sales volume, raise capital, do basic book keeping etc.

As with any new business, you will want to control costs. You could start out small by picking up a couple of older vehicles from elsewhere and seeing if you can sell them locally from your home. This way, you could get an idea of the local market potential without risking much money.

Ray paulsen
11-25-2009, 07:53 AM
If you have experience and knowleadge in all area's then it's a valid idea, but if your idea come from thoughts it's greener on the other side of the fence " stay away "

Without going into a song and dance, personally speaking if I had the drive in me I once had and wanted to open a dealership today " even a small corner lot with 15 to 20 low end vehicles " not being a mickey mouse operation a very minimum line of credit or capital needed will be in the 3 to $400,000 range, and this amount will quickly be absorbed with a few negative months.

If you think my numbers are high, then consider for starters a $50,000 bond for a dealership license, I could ramble on with many other cost factors, but will wait to see if your feet are warm or cold.

Ray paulsen
11-27-2009, 04:44 PM
Get some books on running a small business. You need to understand how to predict potential sales volume, raise capital, do basic book keeping etc.

As with any new business, you will want to control costs. You could start out small by picking up a couple of older vehicles from elsewhere and seeing if you can sell them locally from your home. This way, you could get an idea of the local market potential without risking much money.

Foreword,,, I hate and fear Rats, and every time I see you pop up a dimensional structure rises " I really am courious " what made you think of a name like Magic Rat. Is it becauce we're not all quite there ? also could you please reinstall your preceding Avatar as it was not only more pleasure to the eye, but took my thoughts away about Rats.

About your post,,, I agree with all you said till you stated " sell from your home " this is where the rodent side of you must have taken the reins as you're suggesting to the questionnaire to become to what is known in the industry a curbsider, and that my Rat friend is illigial.

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