Buy and sell cars: Useful tips for aspiring businessmen
Updated on September 20 2023
METRO MANILA, – Did you know that the used-car industry is booming these days as the cost of new cars continues to rise?
This means setting up a buy-and-sell car business might be a good idea, especially if you have the right skills and equipment. But don’t get too excited yet!
There are many things you must do to succeed in this business. Let our experts at Automart.PH show you the ways.
1. Study the industry well
This is a no-brainer, but it’s a crucial point.
You must not only love being in sales, but also possess sufficient expertise. Being passionate about your business will certainly help you strive to achieve your goals. But your knowledge will help you determine what will make money in the short term and the long term.
Conduct thorough research about buying and selling cars by checking out comprehensive articles and videos from credible sources like Automart.PH. Do not rush to learn everything in one go.
Moreover, joining Facebook groups for businessmen and used cars will help you gain more knowledge about the industry. Take note, though, that not everyone online offers reliable information.
2. Create a thorough business plan
A business plan serves as the roadmap for your firm and can also be used to explain your endeavor when inviting investors. It should cover:
- Daily tasks that must be completed
- The estimated overhead costs
- Your business goals
- Back-up plans in case things don’t work out
For instance, when you’re buying a used car to sell again, make a to-do list of everything that you need to accomplish, including a list of documents for you to check, receive and issue.
A well-written business plan can greatly help in running your firm by providing direction towards of your goals. Thus, you can think of possible solutions ahead of time.
3. Location, location, location
Another useful tip for having a successful buy-and-sell car business is having the right location.
Look for the best areas where you can put up a showroom. Check if you have enough parking space for customers and an office that can accommodate walk-in customers.
By doing this, people will happily go to your shop and conduct transactions, without too much effort on your part.
4. Be familiar with the law
Each country has its own set of rules for buying and selling cars.
Usually, this includes getting a business permit and regularly submitting documents to government regulators. If you’re not certain of some things, it is highly suggested to seek legal advice.
This way, you will be guided by a lawyer on certain steps and have protection should any problems arise.
5. Find out popular cars
Determining your target market is critical to achieving your business goals.
A clearly defined target market can aid you in selecting the appropriate products to sell. Thus, consider the brands and vehicles they want to buy.
There are a few techniques to figure out what people want, such as conducting a survey or interviews. Another way is to watch car blogs and check fast-moving units in a particular area.
6. Remember the prices
Price is a crucial component in any business, especially in the buy-and-sell market.
You must consider two prices: the cost of the car you buy and the price at which you will sell it. Examining your closest competitors might help you in developing your own pricing strategy.
When buying a unit, you must be a skilled negotiator so that you get the best deal. But when you sell it on, you must set a minimum price for each vehicle so that you can still make money even after negotiations.
You can also make promos for customers who have already bought one or two cars from you. This way, they will remain loyal to you and probably even recommend your shop to other people.
7. Have a dependable mechanic
Hiring in-house mechanics can benefit your company in a variety of ways.
For one, they can tell whether a vehicle is a good or terrible investment so that you don’t end up with lemons. For another, they are capable of performing any major repairs and inspections on the vehicles you acquire, without needing to outsource to expensive shops.
It also helps if you know a lot about cars so that you can back up your mechanic’s claims. You can save even more money by doing some of the work yourself.
8. Invest in effective advertising
Great advertising can spell the difference between making it big or going down in flames.
Businesses, whether small or big, usually use social media to get as much attention as possible. Apart from it being cheaper than billboards and TV commercials, online platforms also offer an easier way to build a network. This means that you can market your company and find clients without spending too much money.
Aside from social media, there are additional low-cost alternatives to advertise your business like flyers, posters and tarpaulins. Another proven strategy is to market your units in the classified ads section of the newspaper.
And if you have bigger revenue, you can even run advertisements on television, radio or print publications like the newspaper or a magazine.
These tips are very important to succeed in any buy-and-sell car business. However, it is also vital to buy vehicles from the right place.
Automart.PH proudly offers a wide selection of used and repossessed cars at great prices, ranging from compact cars to pick-up trucks.
And if you’re looking for the finest used cars, check out Automart.PH Certified Used Vehicles. These are restored until they feel like new again. They also come with a three-day money-back guarantee and, for Gold Certified units, a one-year warranty.
Automart.PH Senior Content Creator VJ Bacungan contributed to this story.