The used-car market is thriving nowadays, as the prices of brand-new cars continue to inch up. This means that your business venture would likely succeed -- if you have the smarts and right business tools. Obviously, there are a lot of things you must know. Consider these following tips and guide Philkotse.com prepared for you.
1. Have a working knowledge of the business
This is a no-brainer tip, but it is also an important one. No matter what business you want to be in, you must have both passion and knowledge of the venture you are going to start.
You must have both passion and knowledge of the venture you are going to start
2. Check the law
Every country has different regulations in buying and selling of cars. This will tell you how many vehicles you can buy and sell, and who can buy and sell. Apply for a dealership license if you are planning to buy more than the limit.
A dealer's license allows you to operate legally, but this also comes with the added responsibility to your business. You need to make sure that the vehicles have a clean title. Familiarize yourself with the law about your business.
Apply for a dealership license if you are planning to buy more than the limit
>>> You might want to know: 5 essential sales skills to become a successful car seller.
3. Get the car brands for your target market
An essential in business is defining your target market -- the group of people that you hope will buy your product. A well-defined target market will help you choose the right product to offer.
If your target market is composed of average car users, consider the brands that they trust and are reliable. Do some market research. There are ways to know what brand your target market trusts and what type of car they would likely buy. You can get this information by conducting a survey or poll.
If your target market is composed of average car users, consider the brands that they trust and are reliable
4. Study the pricing
Price is an important factor in the business more so in the buy-and-sell field. There are two prices that you need to be concerned about: The price of the car you will buy and the price you will sell it at. You need to make sure that the price Is right in both instances.
Checking the price of your closest competitors will also help you formulate your own pricing. In buying a car you need to have good bargaining skills. But of course, it should be reasonably priced and competitive. Set a bottom price for each car. This will be the lowest price that a car can get. This is for customers who will bargain with you later on.
Price is an important factor in the business
>>> Tips for you: 8 essential tips for starting auto repair business in the Philippines.
5. Have a reliable mechanic at the ready
Having a reliable mechanic can help your business in many ways. They could do all major repairs and inspections of cars that you buy and sell. They can tell you if a particular vehicle is a good or a bad buy. A trusted mechanic could also give you an opinion on what should be repaired and what should be replaced.
It also helps if you know quite a bit about cars, so you could confirm your mechanic's opinions.
Having a reliable mechanic can help your business in many ways
>>> Check out: For car sellers: How to detail a car before getting it sold.
6. Prepare a checklist/ business plan
When starting a business, it is a good idea to have a business plan. This will be a guide in your business and can also profile your venture when you are looking for investors.
Doing a checklist must include the day-to-day of what you need to do. Have a checklist of to-dos when purchasing a car (including a list of documents for you to check, receive, and issue). Having a written plan will help you big time in managing your business -- and gives a clear plan of attack.
7. Space, space, space
Plan the location or space for your business. Make sure that you have enough space to park cars. It is also important that it is near to your target market and other potential customers.
8. Consider an advertising budget
Your advertising must attract customers, spread the word, and generate sales. With social media today, not only do we save money for advertising, but we also create a network. You can use social media to promote the business.
Your advertising must attract customers, spread the word, and generate sales
Besides social media, there are also other ways to advertise via low to no-cost ways. Printed advertisements are flyers, posters, and tarpaulins. Post and give away flyers in areas where your target market could be. You could also put your business in classified ads in the newspaper. If you have a bigger budget, you can do television, radio or newspaper ads.
>>> Also check: 5 things car salesmen hate about car buyers.
9. Use the Internet
The Internet can be useful in business if it is used right. You can create social media accounts, pages or websites, so your target customers can reach you. You can also showcase your inventory in your accounts. This will also attract potential customers and even help you close a deal. You can also post classifieds for free on sites.
Make use of the advantage of technology and the Internet. This can help you big time in business. Take good pictures and be creative with your post and caption. Make this part of your marketing strategy.
Make use of the advantage of technology and the Internet
Starting a new business is overwhelming and understandably scary because of the risk. But remember that an entrepreneur always takes a calculated risk. If you believe in what you are doing and this is your passion, stop hesitating. If you ever decide to start your buy-and-sell car business, we hope this article has helped you get a better understanding of what to face.