How to Operate a Used Car Business

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Bear in mind, that to be a successful in the used car business, it is always important to carve a good reputation as a car dealer, one with a trustworthy image, because once customers will recognize that you are an honest dealer, they will expect that your service will be excellent and much better than the nearby competitors.

When you are planning to attend a car auction to acquire a used car, make first the necessary preparations before buying, such as: acquire a vehicle inventory in a used-car auction; bring a car expert to assist you in distinguishing which car is still worth the investment of selling; make rough calculations on the repair cost and labor cost for a chosen car in the auction to be put back in running condition and use this estimate to decide if you can make a profit; don’t overbid for a car that may need a lot of repair; when you have won a car, which you think is worth the investment, pay for it and secure the important paperwork, including the car title.

Once you have brought the acquired, used car to your lot, hire a licensed car mechanic to repair the faulty parts and instruct the mechanic to document all the repairs made, so you can take into account the total cost of repair; then hire a professional auto detailer to clean the interior and exterior to make the repaired, used car presentable to the customers. Check out Anthony Underwood Automotive for the best deals.

In order to present a neat and appealing appearance of a well-maintained car shop, follow these procedures in maintaining a proper housekeeping in your business area: sweep and get rid of debris, sticks, rocks, pebbles that are on your car lot, wash regularly your business signage and power wash the exterior walls of your shop; clean regularly your office and maintain an organized desk arrangement; sweep and mop regularly the car showroom; make park arrangement of your used cars in a practical set-up ensuring enough spaces for customers’ inspection and in the opening of the car doors.

An advantageous approach that will help convince customers to buy your car is to offer warranties, such as a 60 or 90 day warranty.

Instruct your staff to greet well each customer, assisting and talking to customers on their inquiries and demonstrating proper business conduct, always.

Before customers can negotiate for the lowest price you can offer, be prepared to compute for the minimum price of the used car without forfeiting your profit and put a 5 to 10 percent mark up as the vehicle’s total dealer cost and use this price during the negotiation process. The National Automotive Dealer Association guidebooks have information for trade-in value of different car types and models, so when customers would like to trade-in for a new used car, be also prepared for the right trade-in price.

Part of a successful used car operation is to be customer-oriented, such that you can provide them these services: offer a free vehicle identification number report or background check on your used cars; make follow up on your customers, either by direct mail or telephone call, to thank them for buying your used car. Keep these in mind when looking for the best birmingham used car dealers.

Find some tips on inspecting a used car for purchase at https://www.youtube.com/watch?v=vC8LbvYk6es.

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