Becoming a car dealer is a process that requires an investment of time and money, but can make high profits. A car dealer can work in several different ways to make money: operating a used car, buying / selling cars wholesale on the basis of what is needed, or investing in a franchise branch to sell cars already established. It does not require formal education to run the car business, but it does require some training.
Follow up with me the most important steps and tips that you must follow to become a successful car dealer:
Save your money: Almost every step towards becoming a car dealer will cost you money. Depending on the type of business you want to display and the amount of inventory you are planning, we cannot estimate your financial costs, because we do not know what kind of cars you will target in your business.
Obtaining a dealer license: I do not know whether all Arab countries can obtain this license, but I recommend that you look into the matter because each country has its own requirements for a car dealer license.
Administrative business: As with managing any business, being a car dealer requires a certain degree of accounting, marketing, administration and customer service knowledge. You do not need an MBA degree, but you must be familiar with all the information that will help you to manage your business.
Decide how you want to run your business: Because being a car dealer means that you will work for yourself, there are many questions that you need to ask yourself before moving on to the next step, and these are the things that you need to consider:
- Do you want to be an independent car dealer and only work on your own?
- Do you want to sell new cars or used ?
- Do you prefer to own a lot and hire sales representatives?
- If so, how many employees do you need and what will their jobs be?
- Will they provide in-house financing or require your clients to get their own financing?
- How much money do you have to invest, and how much money do you need?
Preparing a business plan: Once you know the exact type of car dealer you want, you should take the time to put every aspect of your business plan on paper. This will help you stay on track with budget projections and project building priorities.
Choose a location: This may be as simple as keeping a few cars in your backyard or in front of your home or creating a website to serve as your business site, whatever your site, you will need to obtain a letter of verification of the area in order to proceed to the next step.
Register your business name and obtain a commercial license in the Automotive Division.
Auctions: As a car dealer, you can attend private wholesaler auctions and buy cars at lower prices than market rates. You can also go to new car dealerships and buy them in bulk, with closed bids.
Mechanical technician: At the beginning of your work in this sector, you should seek the help of a reliable mechanic in examining and repairing used cars that need a little work before placing them on the list of cars ready for sale, and if space and funding permit, you can open a garage to repair cars as a side From your job as a car dealer, giving you the possibility to provide additional income for your project.