Some people have the gift and skill for making, while others have the gift of the gab. They can give you the details, the tricks, the tips, and sell it to you all for a good price - and if the latter sounds familiar, then a car dealership might just be in your future.
You don’t need to love cars, but being enthusiastic about them will help. A car dealership can make a lot of money for those with a little entrepreneurial spirit and a sales focus. So, let’s take a look at the top tips for launching a car dealership.
Photo by Felix Fuchs on Unsplash
Cash
Lay it out on the line; it isn’t cheap to start from scratch, which is why a lot of people start with a franchise and then move on to owning their own. The startup capital you need will change based on your needs, but expect to need at least a couple of tens of thousands. You’ll need to cover space costs, car buying costs, employee costs, and tech costs like computers, phones, and software like a DMS.
This can be more or less expensive based on whether you are selling used or new cars, your location, and how small you start.
One make or many?
There are many car dealerships that will have a lot of different makes; most of the time, they are used car dealers. While new car dealers will most likely stick with one make of car. Before you decide which one is best, you need to understand your buyers.
Look at the local market - what do they drive, what is the median income for the location? Answer questions about your market, and you’ll know what you should be selling.
Customer service
People buy a car every once in a while, but they go back to the same place that gave them outstanding customer service. You need to make sure that you aren’t just sealing the deal and selling a car; you are turning that customer into a loyal customer. They will tell other people about the service they received, and you’ll see more clients because of it.
Customer service carries on long after you have sold the car and is something that can keep your business ticking over for years.
And, in the age of the internet, people are quick to leave reviews that will stay around for years and impact peoples’ choice of car dealership years down the line.
Leverage Local
While there is no doubt people will travel to get the best deal on their car, local SEO, marketing, and advertisement is the way to go. Make sure that you. Claim the Google business page, and in every piece of content that you put on your website, you double down on the mentions of the local area. This can be vital for ensuring you make the most of the local sales opportunities.
Your digital presence will have a huge impact on how people find you and how often; here are some tips to make that easier: Your Business: Stepping Up Your Digital Presence.
