How to Start a Used Car Sales Business
The United States has about 250 million vehicles registered, and people still continue to buy vehicles to this day. Selling cars is a profitable business venture so long as you have the right motivation and people skills to sell vehicles to potential customers. While selling new cars is one avenue for car sales, a common form of business is selling used cars. The following steps will show you how to start a used car sales business.
- Difficulty:
- Moderately Challenging
Instructions
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1
Register your business, acquire a business permit and complete all legal paperwork. Starting a used car sales business can be daunting. The simplest way to start is by contacting your local Small Business Administration. It can offer you free assistance in filling out all the paperwork, creating a business plan and finding funding and employees. See link below to locate an SBA office in your area.
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2
Apply for a wholesale or vehicle dealer license in your state. You will need a license from the Department of Motor Vehicles before you can sell used cars. Your state may require you to complete a dealer education program before you can apply for a dealer/wholesale license. Contact your local DMV for more information.
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3
Find a vacant lot on which you can sell the used cars. You will need to acquire a vacant lot with sufficient space. You can sell used cars from home if your yard is big enough. You cannot park and sell used cars from your driveway since it is illegal in all states. Contact your local DMV for your state's rules and regulations for selling cars.
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4
Purchase used cars to sell on your lot. Go to a wholesale car auction to fill up your inventory. These auctions have all kinds of used SUVS, trucks and cars that you can choose from. You can also attend police auctions and towing company auctions. You will need your wholesale/dealer license to purchase used cars from these kinds of auctions. Since you are not allowed to test drive the used cars during the auction, make sure you and your mechanic thoroughly inspect it. Check for the vehicle identification number (VIN) and its condition. Additionally, you should bring a laptop to check the car's ownership history through Carfax so you can assess the value of the car. See link below for list of wholesale dealers in your area.
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Hire auto sales people and a licensed auto mechanic. A licensed mechanic can help you inspect the cars you will purchase for any defects and problems. Always take your mechanic with you to the places you want to buy used cars. An experienced auto sales person can help you sell your used cars.
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Gather up pricing quotes for used cars by going to the Kelley Blue Book website (link under resources). Kelley Blue Book is a website that gives pricing range for used cars depending on its year, make and model as well as other conditions and vehicle amenities.
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