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    Dub2322's Avatar
    Dub2322 Posts: 11, Reputation: 1
    New Member
     
    #1

    Jun 26, 2013, 09:49 AM
    Dealership
    About how much would it cost to start or buy a dealership?
    smoothy's Avatar
    smoothy Posts: 25,492, Reputation: 2853
    Uber Member
     
    #2

    Jun 26, 2013, 10:05 AM
    More than you have or can get if you are asking that question in that way. Its worse than asking how much to buy a new car. You didn't give nearly enough info to give ANY answer.

    How about somewhere between assuming all of the debt of the previous owner to upwards of 100+ million dollars.
    smkanand's Avatar
    smkanand Posts: 602, Reputation: 56
    Senior Member
     
    #3

    Jun 26, 2013, 10:06 AM
    Depends upon the product you choose to become dealer or sub dealer. Which kind of dealership you asking, product?
    Dub2322's Avatar
    Dub2322 Posts: 11, Reputation: 1
    New Member
     
    #4

    Jun 26, 2013, 11:02 AM
    I'm thinking about starting a used car dealership for now..
    smoothy's Avatar
    smoothy Posts: 25,492, Reputation: 2853
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    #5

    Jun 26, 2013, 11:06 AM
    Property costs (such as rent and upkeep)... liscesning... insurance costs... taxes have to be factoed in... Utilities... and that's assuming you do it alone or you have to factor in wages and benefits...

    And that's before you start building an inventory which costs have to be paid up front but recovered over a period...

    All of those at this point are unknown and highly variable depending on which category of customers you are shooting for... the well off people... the average person who hads to finance everything... or the dregs who nobody will loan a dime to because they don't believe bills are a priority.
    Dub2322's Avatar
    Dub2322 Posts: 11, Reputation: 1
    New Member
     
    #6

    Jun 26, 2013, 11:09 AM
    Quote Originally Posted by smoothy View Post
    Property costs (such as rent and upkeep).....liscesning...insurance costs....taxes have to be factoed in...Utilities...and thats assuming you do it alone or you have to factor in wages and benifits....

    And thats before you start building an inventory which costs have to be paid up front but recovered over a period of time...

    All of those at this point are unknown and highly variable depending on which catagory of customers you are shooting for.....the well off people......the average person who hads to finance everything....or the dregs who nobody will loan a dime to because they don't believe bills are a priority.
    That's what I needed to know.. Thank you!
    odinn7's Avatar
    odinn7 Posts: 7,691, Reputation: 1547
    Entomology Expert
     
    #7

    Jun 26, 2013, 12:15 PM
    I own a used car dealership in PA.

    Whatever you think it will cost you, double it. Everyone has their hand out. The state for licenses... the town for licenses... the feds for licenses... rent... utilities... insurance... bonds... flooring fees if you do inventory this way... repairs... if you get someone to finance for you, even they have their hands out for money.

    Starting a dealership isn't something you should just one day out of the blue decide to do and then go with it. Research... ask... get to know people... learn. It helps to know the car business as well. If you don't understand cars, pricing, auctions, repairing... it's going to be a long and bumpy road for you.

    It's NOT easy. It's NOT cheap. And it's definitely NOT a get rich quick plan.
    Dub2322's Avatar
    Dub2322 Posts: 11, Reputation: 1
    New Member
     
    #8

    Jun 26, 2013, 02:19 PM
    Quote Originally Posted by odinn7 View Post
    I own a used car dealership in PA.

    Whatever you think it will cost you, double it. Everyone has their hand out. The state for licenses...the town for licenses...the feds for licenses...rent...utilities...insurance...bonds... flooring fees if you do inventory this way....repairs....if you get someone to finance for you, even they have their hands out for money.

    Starting a dealership isn't something you should just one day out of the blue decide to do and then go with it. Research...ask....get to know people...learn. It helps to know the car business as well. If you don't understand cars, pricing, auctions, repairing....it's going to be a long and bumpy road for you.

    It's NOT easy. It's NOT cheap. And it's definitely NOT a get rich quick plan.
    I understand.. But that's what I want.. I business I start from bottom and bring to the top.. Even if it takes 20 years! Lol
    odinn7's Avatar
    odinn7 Posts: 7,691, Reputation: 1547
    Entomology Expert
     
    #9

    Jun 26, 2013, 02:23 PM
    Make sure you have money in the bank to live on for at least a year. I mean, you could get lucky and start showing profit sooner than that but don't count on it.

    Look into flooring your inventory rather than buying it outright with your own money. I made the mistake of using my own money to buy cars in the beginning and it cost me... if I had floored them like I do now, I wouldn't have started as far behind.

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