The Used Car Dealer Business Plan and Business Development toolkit features 18 different documents that you can use for capital raising or general business planning purposes. Our product line also features comprehensive information regarding to how to start a Used Car Dealer business. All business planning packages come with easy-to-use instructions so that you can reduce the time needed to create a professional business plan and presentation.
Used Car Dealer Business Plan, Marketing Plan, How To Guide, and Funding Directory
Your Business Planning Package will be immediately emailed to you after you make your purchase.
Product Specifications (please see images below):
- Bank/Investor Ready
- Complete Industry Research for the Industry
- 3 Year Excel Financial Model
- Business Plan (26 to 30 pages)
- Marketing Plan (24 to 28 pages)
- 425+ Page Funding Directory
- PowerPoint Presentation
- Loan Amortization and ROI Tools
- Three SWOT Analysis Templates
- How to Start a Business Guide
- Easy to Use Instructions
- All Documents Delivered in Word, Excel, and PowerPoint Format
- Meets SBA Requirements
Used car dealers are always able to remain profitable given that people are going to need a new vehicle from time to time and usually most people acquired used one in order to save on cost. These businesses are able to generate numbers of different types of revenue. First, they can make a moderate gross profit on the sale of a new vehicle to an individual. Second, many people use financing in order to acquire vehicles and as such most used car dealers now have in-house financing operations. Depending on how these operations are carried out, the financing portion of a used car dealer can become its largest profit center. Third, many used car dealers also maintain mechanics on site so that repairs can be made. This is an important high-margin revenue stream for most vehicle dealers given that it is immune from negative changes in the economy. From time to time, all cars are going to need servicing and having a mechanic on staff can provide a smooth stream of revenue for a used car dealer on an ongoing basis.
Almost all financial institutions are happy to provide capital to used car dealers given that the money is primarily used for the acquisition of real estate as well as for an inventory of vehicles I have salable value. Of course, if an entrepreneur is looking to raise capital for their new used car dealership and they are going to need a business plan. This business plan should include a three-year profit and loss statement, cash flow analysis, balance sheet, breakeven analysis, and business ratios page. Specific for this type of business plan a full analysis of the types of vehicles should be discussed as well determine the quality of the collateral that will be held when applying for either a business loan or a line of credit. Beyond the financial information, a full analysis pertaining to the population size, population density, median household income, median family income, and the number of competitors in the market should also be examined. Of special importance to the demographic analysis is the examination of the median household income as it will determine the types of vehicles that need to be held in inventory that are affordable to the general public.
Marketing is extremely important for any used car dealer as it is imperative that inventory is turned over as fast as possible. As that capital is usually used to hold large inventories of used vehicles – it is important that as little time as possible pass between the acquisition of the vehicle and the sale. There this substantially reduces inventory holding costs. As such, many used car dealers maintain an expansive lot which serves as the primary way of showcasing their inventory to the general public. Over the past 15 years, the Internet has allowed many used car dealers to place their inventories online as well. This includes maintaining listings on popular third-party websites that allow for the showcasing as well as the sale of vehicles from time to time. It is very important that a used car dealer maintain an expansive proprietary website that showcases location, current cars held in inventory, pricing, hours of operation, and other relevant information specific to the location. Most used car dealers also maintain profiles on popular social networking platforms such as FaceBook and Google.
A used car dealer SWOT analysis is usually developed as well. As it relates the strengths, most used car dealers are always able to remain profitable given the demand for new quality for quality used vehicles at any time. Additionally, these companies can generate a number of recurring streams of revenue through mechanic services as well as automotive financing. For weaknesses, these businesses typically have very high operating costs given that they need to operate a large-scale facility to house and showcase vehicles to the general public. As it relates to opportunities, many used car dealerships will either expand their location or develop additional locations. One of the other methods of growth is by continuing to be able to provide financing for certain vehicle types. For threats, really the major ongoing threat faced by any used car dealing business are competitive issues. This is going to be one of the most common things that these types of businesses are going to face on an ongoing basis.