“1. background investigation. check the licenses of the party's involved like their age, citizenship, knowledge about vehicle trade etc.”
2. “vehicle purchase agreement (vpa).” a contract between seller and buyer that includes pricing details; it acts as a protection for both seller and buyer.”
3. “employment contract for this dealership's staff”. mention like qualifications like whether they're authorized to sell vehicles or not.”
4. “if ever you ever need financing, insurance coverage for your customers (your cars) is needed – financial information will also be required at this stage”. there are many solutions in these day when clients want to buy car without spending too much money upfront!”
is owning a car dealership profitable?
yes, owning a car dealership can be profitable. car dealerships with a good profit margin may see profit margins in the 50-70% range with a 20% turnover per month.
in order to be successful in this industry, the dealer needs to strive for customer satisfaction and follow sound business practices when it comes to inventory management. if they are skilled at advertising and there is plenty of traffic on their lot, individuals with great attitudes make for top car salesman or car saleswoman.
how do you start a car dealership?
invest some money. it takes a large initial investment to start a car dealership.
you need plenty of capital to establish the infrastructure, including office space, building space for your showroom or service department, and an inventory of cars for sale from which customers can choose. if you want to be safe, anticipate a few years ahead for this investment by banking on more than one stream of income before making the leap. take note that almost all dealerships are not privately owned anymore because it is nearly impossible with today's economy and times where people lease instead of buy new cars off the lot. a dealership is usually started with many investors behind it so they get their share in return. in other words, setting up a dealership requires at least
how much can you make at a car dealership?
salaried parts manager:* $75,000 – $130,000 (depending on experience and company)
hourly parts technician:* $10 – $18/hr + overtime (average wage is around 20 hrs a week)
overtime: casual- up to 3 hours per day (some companies can refuse overtime) *can be quite stressful and physically demanding job.
sales person: average range is about 47-57k based on commission. experience has little effect as this is determined by territory rather than the salesperson's own ability. commission increases significantly with more volume sold in a given year. typically there are two types of commissions for salespeople at car dealerships– one that