Post date: Aug 17, 2017 11:30:32 AM
An automotive dealership is a good business choice because the demand for vehicles is seen to continue to keep on increasing. In 2016, a total of more than 210 million Americans were licensed drivers. Additionally, cars will remain to be the primary mode of transportation in the foreseeable future.
Image source: blog.lupient.com
While establishing a car dealership may eventually prove to be a sound investment, there are many factors to consider before pushing through with it. Here are some of them:
New, used, or both? The first thing that a starting car dealer would need to think about is whether to sell new cars or used ones. Choosing the former will require a substantially higher amount of capital and a partnership with car manufacturers. A used car dealership will not require as high as an investment, although it also entails a lower income potential. If there is access to new and used cars, it can provide customers more options.
Location: The physical site of the dealership is another important consideration because convenience and visibility could bring in more potential customers. But with the advent of mobile technology, location is not as big a deal as it was decades before.
Federal and state laws: It is important to become well-versed with the laws, such as Federal Used Car Rule, consumer rights, safety laws, lemon laws, and much more. These govern the operations of car dealerships and ensure the legitimacy of the business, which can eventually attract more customers.
Image source: blog.lupient.com
Jeff Lupient grew up in an environment that dealt with cars. He eventually became the president and CEO of his own car dealership, Lupient Automotive Group. Read more about the industry by following this Facebook page.