ENTREPRENEURSHIP / DEC. 22, 2014
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How to Make a Profit in the Used Car Business

The rise of secondhand automobile market can be attributed to global and national economic upheavals which make buying brand new cars a vain and distant dream to some people. You can, however, transform these socio-economic problems into blessings by learning how to make a profit selling used cars.

Start on the Righting Footing

Identify a reliable used cars dealer with connections to auctioneers, companies or individuals who are in search of people to buy their old car(s). Ensure that the dealer is properly licensed by relevant authorities. Check out his or her ability to innovatively make old cars look new cost-effectively. Pay attention to the dealer’s investigative skills. Cars without certified Driver and Vehicle Licensing Agency’s documents may, for instance, have been stolen. They could also have connections to previous crimes which may suck you into a whirl of legal problems. Focus on the dealer’s proficiency in delivering new orders at prices that leaves you substantial profit margins.

Cuff off Overhead Cost

You don’t need a volt of cash to start and run a profitable used cars enterprise since you can use your home garage to start the business. Grow the business organically. Don’t rush for personal or bank loans to enable you establish roadside car yards as this invites numerous overhead bills that may suffocate your business and strain your resources. Start with one or two cars and regurgitate the profits from their sales to gradually build an impressive collection of used automobiles.

Mix New and Old Marketing Tactics

Take on old and new marketing skills innovatively. Drive your used revamped car for sale to work, parties or to the beach. Target places where you know people, offer them lifts especially if you know the car will captivate them and focus on selling the car’s outstanding interior and exterior specs or modifications. This is how the first Ford Mustangs were successfully marketed. Incorporate tech-marketing using mobile phone applications that enable you post videos of the car while on a road test and besides giving a 360 degrees view of its interior and exterior beauty. Local search engine optimization skills and effective use of social media platforms can boost your sales exponentially especially if your used car dealership business has a website with favorable user ratings.

Sell Quality and Reliability

Keep fuel guzzlers off the list of your used cars’ collection. Go for fuel efficient models or hybrids with market appeal. Repair and modify the car creatively with a specific target market in mind. Youths, for instance, like flashy body paint jobs, powerful automobile stereos, and tailored rims or dashboards. Older people may prefer comfortable cars, with classic paint job and mature looking interior designs.

Follow these tips and you will be well on the road to creating a profitable used cars business that’s built on quality, reliability and excellent customer service.

 

Image: iStock

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