#used car dealership
The Problem with the Used Car Industry Today
The Major Problem Facing the Used Car Dealer – High Costs!
This is not the industry of 30 years ago when a dealer could buy a car at auction and sell it a few weeks later for a handsome profit. Increased costs are cutting into the used car dealer’s profit margin and will continue to do so. 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 AutoIncome Co-op Used Car Dealership. Before we introduce our Dealer License Co-op Solution . lets examine why it cost so much to maintain a used car dealer license today.
Initial Start Up Costs of a Used Car Dealer License
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. Most states require that a used car dealership be located in a commercially zoned location and that usually means high rent. Landlord’s will require a first month rent and security deposit and that will cost between $1,000 to $3,000 depending on the location. The second major cost is the commercial dealer insurance that a used car dealer is required to maintain. Commercial used car dealer insurance can cost up to $20,000 per year and usually requires a down payment of twenty to forty percent. Now add in the cost of the bond, utility deposits, signage, legal fees and other requirements and you can plan on spending another $1,000 to $3,000. So the initial cost to open a used car dealer license can run $3,000 to $10,000 or more depending on your particular state. Imagine spending $10,000 even before buying and selling one used car.
Monthly Overhead Costs of a Used Car Dealer License
After the initial start up cost, the used car dealer is then faced with high monthly overhead. The monthly overhead costs associated with a used car dealership include rent, dealer insurance, dealer bond, utilities and a host of other expenses. However, one of the largest expenses associated with a used car dealer license is employee payroll. Most DMV’s require that used car dealerships maintain normal business hours and that an employee or the owner of the used car dealership be available during those hours for inspection. This is an important aspect that most people overlook when opening a dealership. When the DMV says an employee they actually mean an employee and the DMV will ask for W2 proof that the person is an actual employee of the dealership. So the monthly overhead not only includes rent, insurance and utilities but also includes payroll. The average monthly overhead cost to maintain a used car dealership in any state will vary between $1,000 to $5,000 depending upon the particular state. Imagine spending $1,000 to $5,000 each month just to have access to a used car dealer license.
Join a Co-op Used Car Dealership and Lower Your Costs
Used car sales is one of the best business opportunities available anywhere. The used car business opportunity is simple to understand (buy a car, sell a car, make a profit), easy to implement and very lucrative. However, those lucrative profits can disappear quickly if you have to maintain your own dealer license. This is why joining an AutoIncome Used Car Dealership makes sense. You are simply sharing the costs associated with the dealer license with a number of other entrepreneurs just like yourself but you retain all your individual profits. Why pay $10,000 up front and $1,000 to $5,000 each month just to have access to a used car dealer license when you can do the same for much less. With AutoIncome you gain access to a used car dealer license, a fully insured dealer plate and dealer only auto auctions for only $299 per month .