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Is owning a small car dealership worth it?

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Owning a small dealership, meaning only selling 5-15 cars at a time. Using the internet to sell them. Also how do dealerships get cars if it's not a franchise?

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asked Jul 29, 2017 in Cars and Transportation by Love big words

2 Answers

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Buying cars is not a problem. I used to go to at least 2-3 dealer auctions a week. One was open to the public too but 90% of transactions were dealer to dealer.

Selling enough of them at a big enough profit is the problem many face.

Very few people can make even $500 a month selling cars off the internet.

This means you need a car lot. Car lots are expensive. Employees are expensive. Overhead is expensive.
Garage liability insurance is expensive.

97% of the dealers you compete against have much more experience and money than you do.

I somehow made a living at it way back when for a dozen or so years.
answered Jul 29, 2017 by clayton
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Thre isn't a lot of markup on used cars by the time you add in all the costs to get the car in saleable condition. So selling to the public isn't very profitable. You have to rely on high volume to make a good living. There is a lot of overhead to operate a used car dealership.

Selling dealer to dealer and auction to auction is a better way to move lots of cars quickly and easily.
answered Jul 29, 2017 by mccoyblues

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