If you are passionate about cars, then starting a car dealership might sound like the perfect business opportunity for you.
In South Africa, which allows you to legally buy and sell cars to the public.
It ensures that all of your business activities fall under the consumer rights and protection act.
The most important part of your business plan will be the cars themselves.
For example, will you be selling new, used, or pre-owned vehicles?
The only way to thrive in the used car sales industry today is to cut costs and the best way to do so is to join an Obtaining a used car dealer license in any state requires that you meet certain requirements for that state.
The first and most expensive requirement for a used car dealer license is the location.You should always keep your budget in mind when purchasing inventory, as it can become costly if you are continuously running over-budget on purchases.This is when it is important to keep your business plan in mind as it will show you exactly how much you have to spend on inventory so that you can stick to this budget.Another important part of your business plan include how you will raise money to repay any loans or finance agreements you might have.After finalising your business plan, you should do some research into what documents you need to continue.Speak to your lender about the other documents that you need for a franchise agreement, as these might be slightly different from what is required for a normal dealership.Also be sure to provide the correct documents to those you are purchasing used cars from.Look at how many cars have been sold in your town recently, assuming that most people are willing to travel up to 16km to find a car.This might show you that in your area, up to 100 000 cars have been sold in a year.The most important aspect of owning a car dealership is, of course, having cars to sell.This means that you will need investigate inventory opportunities, such as going to bank auctions to find cars that you can bid on and then resell at a fair price, or you could offer to purchase used cars from people who need to sell them and then resell these after much needed repairs and sprucing up.