There’s no doubt about it: the used car business is an amazing investment. It’s a simple formula that doesn’t take a lot of time or money to get set up, and you can quickly reap the rewards of being your own boss. If you’re interested in getting into the used car business but aren’t sure where to start, here are some tips to help get you started with your entrepreneurial journey:
Buy Cheap, Sell Cheap
In the used car business, there’s a saying: “Buy cheap, sell cheap.” The idea is that you can make money by buying used cars at deep discounts and then selling them for more than you paid.
It sounds simple enough, but it’s not as easy as it sounds. You need to know how to buy cars cheaply–and how they’re priced in the first place–in order to make this work for you.
No Need to Purchase Cars in Bulk
If you’re like most used car dealers, the thought of buying cars in bulk is appealing. It makes sense: If you buy 10 cars at once, for example, instead of one at a time (or even two), then you can save money on shipping and advertising costs. And if the market is good and demand is high, it might seem like an easy way to make more profit. But there are several reasons why this strategy doesn’t work well in practice:
- Buying too many cars at once means that your capital will be tied up in inventory for longer than necessary–and if sales aren’t good enough to sell all those vehicles quickly, then both profits and losses could mount quickly as well!
- This approach also encourages overspending on each individual purchase; because there’s no need to monitor cash flow closely while waiting for payments from customers who