Starting A Car Lot?

Starting A Car Lot?

My boyfriend wants to start a used car lot and I'-m looking for some information on that topic.We live in North Carolina and he wants to own his own business.We know we have to have insurance,dealer'-s license,cars of course but we'-re trying to figure out where to get the money from to actually purchase a place and cars to start selling them at?We'-ve thought about loans like business,small business,and through our credit card companies but haven'-t had any luck because of his credit and it also doesn'-t help that everytime we try to get approved for a loan his credit score goes down because they have to check it.But my main question is where can we come up with or get money to start all this with? Thanks in advance for answers and REAL INFORMATION ONLY,NO SPAM,NO STUPID ANSWERS OR YOU WILL BE REPORTED. :) Thanks Again For All Who Answer!

lawnrang

There are several sources of credit for auto dealers out there but you may need some help with a co-signer to acquire the lines of credit. Google "auto dealer floor plan" or "floor plan financing" and you will find sources that have floor plan lines of credit for dealerships.The state of the used car business right now is not good however. Inventory for purchase of used cars through auctions, wholesalers and trade ins is WAY DOWN! The supply is quite short throughout most of the country which makes the used cars available very expensive. Profit margins have been cut by at least 50% over the past 18-24 months. The same car I could purchase at auction 2 years ago now costs an average of $2250 more today while retail prices have not gone up nearly to the same degree.I would recommend selling a few cars here and there on your own. Check with your state regulations as to how many cars one person can sell in a given year before a dealership license is required. In Minnesota it is 5 vehicles per person so you and your could sell 10 cars total in one year per my states' laws. It may not be much, but if you can make $1000 average net profit per unit that is $10k in year one and you can keep building your buying account if you don't skim any money off the top!Until new car dealers start selling cars again like they were 3 years ago, the used market will be tough!Hope this helps!WesNorsew Investments, LLCRochester, MNhttp://www.alternativefranchise.commuch more fun and profitable than selling cars!!Source(s):Owner of an Independent Used Car Dealership

saulg21

Check with North Carolina State Comptroller's office to see what permit(s) he will need to start a car selling business.I would also check with your County Clerk and see what vehicles have been repossed and are up for auction. Do it one car at a time till he builds up the business. I mean,Rome wasn't built in a day. Good luck.Oh I forgot-www.irs.govGo here to download an application for a federal ID taxpayer number.

o

You need to find a partner who has a lot of money.Or else get ready for lots of red tape..

someone4me95

you have to get a loan so you will have enough moneyplease answer my question http://answers.yahoo.com/question/index-…

Yarcofin

If you can't get the money from bank loans, you're out of luck unless you have some rich relatives or a friend that wants to pay for it, in return for owning a part of the business.Why do you specifically need to start up a car lot? Why are you so sure that you will make a lot of money doing that? The lot is going to cost you at least $100,000, you can easily put another $100,000 into cars.Sounds like your credit is already terrible and you are already in debt, and your business would fail anyway from a lack of knowledge/research beforehand.... I think you are better off sticking with your jobs. Just the fact that you entertained the idea of funding your business through a credit card company tells me that you have no idea what you are doing.If you are so determined to start your own business, start with something that doesn't involve storing and buying large vehicles. There are lots of businesses you can start off for under $30,000... many you can start off out of your home for nearly nothing.

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