How to Start a Car Listing Business
Starting a car listing service allows you to make commission on sales while providing more opportunities for customers to find the car they want to purchase. You can list cars using your own website or advertise in publications like auto magazines and "penny savers". Your business can be started within a relatively short time--your only major challenge will be to find people who want to use your service. Carbuyers use car listing services due to the convenience of using one source when looking for their ideal car as opposed to searching through multiple dealers, publications and websites.
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Instructions
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Structure your business legally. In most states, you must legally form a business so the state can collect taxes based on your revenue. You can operate as a sole proprietor, limited liability corporation, or corporation. Your attorney can file the paperwork or you can do it yourself by visiting the website for your Secretary of State.
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Determine how you will list your cars. The popularity of the Internet has resulted in more consumers who research cars online and work with dealerships with online inventories. You can also list cars in local newspaper and magazine ads.
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Create a website for your car listing service. A website is needed to promote your company and to generate interest from customers. Include information about your business and provide information about insurance, car reviews, and financing options to increase traffic to your site. You can hire a web designer from sites like Elance.com.
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Determine the amount of money you will charge to list cars for your customers. Decide whether you want to charge a specific rate for listing one car as opposed to a variable rate if multiple cars are listed. Decide whether you want to receive payment upfront or after the car sales. The price percentage and listing fees will be negotiated once you make agreements with the car dealers.
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Locate local car dealers and private sellers who want to list their cars for sale. Do not be concerned if some of the car dealerships that you solicit already have a website or publish ads in local papers. The more places that dealers list their cars, the greater the likelihood of finding a customer that is interested in buying their vehicles.
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Contact publications in your area to negotiate advertising rates for your listing service. If you have choose to operate primarily off-line, publications may offer you an advertising discount if they believe that you will be a frequent purchaser of ad space.
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Tips & Warnings
Design business cards flyers and other advertising materials for your business. Hire graphic designers if you cannot create professional advertising materials on your own.
References
Resources
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