Starting a used car dealership - questions for a former/current dealer / auctioneer

[Vr4Whore]

I'm seriously considering starting a used car dealership and obviously have a lot of questions for someone that is currently or has formerly worked / owned a used car dealership and does not mind talking for a bit.

I also have some questions for someone that has worked/ is working at a dealer auction.

Thanks !

[dj_rice]

First rule of thumb. Make sure the lot is paved.

[The BMW Guy]

What questions do you have? I used to work at a used car dealership.

[Sorath]

Originally posted by dj_rice
First rule of thumb. Make sure the lot is paved.

[blitz]

If you have any ethics or morals, start practising setting them aside.

[revelations]

You'll make money on high interest loans.

[Mitsu3000gt]

Approve absolutely everyone. And hire some of these guys to lean up against the trailer and smoke while they wait for customers:

[Tik-Tok]

Make sure to include a "z" in your name in place of a "s", it'll make you sound edgy, and legit.

[rx7_turbo2]

Originally posted by revelations
You'll make money on high interest loans.

This. I don't think there's any money made on selling the cars themselves, if there is it's pretty thin.

Pushing people with bad credit into high interest loans for cars they can't afford, not what I'd call my dream job, but hey

[carson blocks]

Read and understand everything on the AMVIC site. They will be a big part of your life going forward. Also, a fistful of cash will be required. I personally wouldn't want to start even the shittiest used car lot without $100k cash on hand, and $250k would be a lot more comfortable.

[Mitsu3000gt]

Is there even a single reputable standalone used car dealer in Calgary? I have been to many of them and I can't think of one that isn't shady as f*ck.

[ExtraSlow]

Originally posted by Mitsu3000gt
Approve absolutely everyone. And hire some of these guys to lean up against the trailer and smoke while they wait for customers:

Let your salesbros smoke in the vehicles when they take them home for the weekend.
Be sure to offer a free 15,000 point inspection and a "no-hassle" 30 day warranty. That helps build trust with all the housewives.
Require non-refundable deposits on everything. Those are money in the bank.
Hire a minimum wage teenager to spray armor-all on the inside of the windshield. That way you can advertise your stock as "freshly detailed".

[jwslam]

Originally posted by Mitsu3000gt
Is there even a single reputable standalone used car dealer in Calgary? I have been to many of them and I can't think of one that isn't shady as f*ck.

http://forums.beyond.ca/st/357596/ca...to-connection/

[Mitsu3000gt]

Originally posted by jwslam

http://forums.beyond.ca/st/357596/ca...to-connection/

Nice to read some positive feedback for once

[HiTempguy1]

Originally posted by rx7_turbo2


This. I don't think there's any money made on selling the cars themselves, if there is it's pretty thin.

I don't think so. The cars that go to "used car dealerships" are the ones that stealerships with high overhead don't/can't get rid of at a price that makes profit.

Used cars earn more money than new ones (its nuts, you see trade-ins for pennies on the dollar and then are advertised for thousands above private resale). New ones earn money getting maintained as everyone fears their "warranty" getting cancelled if they don't go through the dealer for work.

[G]

You need some of these too...

[BAB Inc]

Auto Quest, Auto connection, Millenium Motors, Supreme Auto sales, Southview motors.....they are all really close friends since high school, they all buy from the same place and have similar vehicles. These guys have been doing this since they were teens, and know the business in and out. Its not easy to just open a dealership and pray it works. I've seen way too many crash in the last 5 years.

[zipdoa]

Selling cars is a scummy, scammy business. If you want to make money, become familiar with terms like:

- Bait and Switch
- Smoke and Mirrors
- Perception is reality
- Buyers are Liars
- Roaches
- The Box
- Adds
- Shwack
- Ups
- Bumps
- Dancing to the music that being played
- Lead them to the fire
- CarFinco
- 60/96

I never made big money on a deal that I didn't feel a little bit guilty about. I left the business due to stress and morals. You learn a lot about psychology though! I'd highly recommend working a sales floor for a couple years before starting your own lot.

Also, invest in training with Duane Marino if you want to become a talented salesman.

[ExtraSlow]

I know a guy who could sell ice to eskimos. Not a scumbag, so he may not be suited for the used car world, but that fucking guy could sell anything. PM me for details when you get your store up and running.

[Dave P]