There are many great jobs out there, from film director to graphic designer to primary school teacher. For the business-minded car enthusiast, however, becoming a second-hand car dealer is almost certainly the dream job – spending all day chatting about cars, finalising deals and making an income in a financially stable industry.
Last year, the used vehicle market was worth four times that of the new vehicle market, and growing. This means that being a second-hand car dealer in 2019 has the potential to be a very lucrative venture, especially when compared to other areas of the economy that are faltering.
Here are some top tips for those considering a career as a second-hand car dealer this year.
Get to know the market inside out
Entering blindly into the world of car dealership is, unsurprisingly, a bad idea. Yet, many people have a tendency to follow their passion without considering the market within which they will be working. This is true for not only the car trade, but for every industry, where people rush to pursue “what they have always wanted to do,” rather than considering the move from a business perspective.
Understanding the local market and how you will fit into it, as well as devising a carefully thought out business plan that includes start-up costs, income, profit and expenditure are essential before taking the plunge into becoming a car dealer.
Learn to build trust with customers
Second-hand car dealerships, unfortunately, has a reputation for asymmetric information, in which the seller possesses far greater knowledge of the product than the buyer, leading to a lack of trust between the two. Learning how to be more transparent and build trust in order to develop a network of loyal customers, is vital in becoming a successful second-hand car dealer.
One highly effective way of achieving this is to prioritise customer service and ensure that their needs always come before your own. Buyers have become increasingly astute when it comes to sales tricks, so avoiding these at all costs is a must.
Get yourself insured
Motor trade insurance is specifically designed with car dealers in mind, as it allows the insured person to drive multiple cars without having to go through and get insured on each one separately. It is far more beneficial than private insurance as it provides car dealers with the freedom to add and remove vehicles without incurring any additional costs.
This means sitting down and spending some dedicated time browsing the internet for a reliable Motor Trade Insurer who offers sufficient cover for your requirements at a price you’re willing to pay.
Seek the right clearance
Whether you plan on being a sole trader or expanding into a business, both require you to carry out the proper registration so that you are legally permitted to buy and sell vehicles for a profit. If you are a sole trader, this entails filling out a self-assessment form for HM Revenue and Customs, while setting up a business may demand more paperwork.