Business idea: help in buying cars as a way to make money

Buying and selling business equipment

Purchase and sale of business equipment

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The demand for used cars is consistently high. Buyers are attracted by the good price and the opportunity to buy a car of a higher class or in a better configuration. All this is true, but in order to choose a really good option, it is worth reviewing a large number of proposals, and as a result, it is not a fact that a person will be able to choose a problem-free vehicle.

Twisted runs, remanufactured cars after serious accidents, technical flaws with the engine, chassis or gearbox, problems with documents (bail, search) and other factors - all this awaits the buyer when looking for a supported car. There are a lot of outbiddings on the market, who want to buy at a lower price, to create a "gloss" and sell at a higher price. In connection with such a situation on the market, the auto-selection business has become trendy lately, when experienced experts in their field go for an inspection, conduct it and recommend or not recommend the client to buy a used car.

This business is built on the reputation of the auto picker, which has been developed over the years. Personal recommendations from satisfied customers are one of the main channels for attracting new orders to this business. Let's take a closer look at how autoselection works from the inside and what are the nuances that should be taken into account at the start of your business in this niche.

Where to start?

Are you interested in auto topics, and would you like to try yourself in auto-selection? We recommend starting with training and getting the first experience in this field of activity. How can you learn? There are three options here.

First, you buy equipment on your own and start figuring out how to work with it, study algorithms for checks by other specialists, look for tools to check a car through online services. All this is a long process, but quite real.

The second is to take specialized courses. Here they will show you the method of work, offer you a set of tools and, possibly, even offer a job as a result.

The third is to go straight away as an intern to an auto-recruiting company and undergo training directly on practical examples with an expert.

It is important to work in this niche, see what problems a specialist faces in this niche, learn to bargain with sellers, diagnose various brands of cars and much more. Only having the necessary knowledge base can you really enter the market and compete with experienced players.

Competition in auto-selection is high. Large companies scale and launch their representative offices in the regions. They have a higher price tag, but people are willing to pay for the trust and service that such companies offer. But how does a beginner stand out? The first option is to build a reputation through independent work with each client. The second is a lower price tag for services. The third is work in those regions where there are no large auto-selection firms yet. Advertising will also play an important role, which we will discuss below.

To start a business with help in buying a used car, you need a small start-up capital - this is perhaps the main advantage for novice entrepreneurs. The work is interesting, scalable due to the delegation of work processes, profitable, so there will be more specialists here and now it makes sense to enter the market and build your brand.

Who is this business for? First of all, for techies who understand cars, and most importantly, they know how to bargain and negotiate with people. You, as an auto-picker, remove from the client all the difficulties and risks of finding a good car, but at the same time you are responsible for your choice, both with money and with your reputation, and punctures are found even by experienced specialists.

Buying a great car, especially when it comes to buying a used vehicle, is always a daunting task. Many car owners are silent about some features, for example, malfunctions of some units, cases of being in an accident, etc. According to statistics, about 80% of used cars in reality have a worse technical condition than stated by the owner. Mileage data for about 50% of cars are adjusted downward. Two-thirds of the cars had body repairs, and about a quarter were rebuilt after an accident. Most motorists do not know all the nuances and subtleties of inspecting a car and identifying defects, therefore, when buying a car without the help of competent persons, there is a significant risk. To prevent such cases, there are special organizations that provide assistance in buying cars.

The main target audience of such companies is all potential buyers of vehicles. There is no gradation within the audience, since assistance in buying may be equally required by both young people buying their first car, girls who have recently received a license, and mature citizens who are first faced with buying a car for the first time.

The main range of services provided by the company is field work for inspection of the car, system diagnostics, checking the functionality of units, etc. As a result, the client receives a full consultation on the inspected car and an expert opinion on its condition and prospects for further operation.

The relevance of business is justified by the lack of competence of a significant part of the population in the selection and quality control of vehicles. Accordingly, the service is and will always be relevant.

Business Organization

Both the entrepreneur himself and the hired personnel of the company can be directly involved in the provision of services. This will determine the initial cost of setting up a business.

If the business owner has the necessary competence, knows all the subtleties and nuances of checking the car, owns his own vehicle, then the cost of starting a business will be minimal. They will only involve the registration and purchase of the necessary equipment (some of which - some tools - may be available).

If the business owner does not have in-depth knowledge of automotive topics, but is an excellent organizer, then a hired employee will be involved in the provision of services. The number of staff may vary depending on the workload of the company with orders, but in the first months it is advisable to have only one employee on the staff.

Preparation of documents and registration of the organization

Since assistance in choosing and buying a car is a service that carries insignificant costs and minimal risks, in order to reduce the costs of opening and maintaining a business, it would be advisable to choose individual entrepreneurship as an organizational and legal form. This will eliminate the need to provide the required reporting on time, maintain full-fledged accounting of the organization, and also make it possible to use a simplified taxation system. Since this service in its provision carries insignificant costs, then the simplified taxation system should be chosen as a subspecies according to the principle of taxation of proceeds. This will significantly reduce the amount of tax paid. In addition, individual entrepreneurship with simplified reporting allows you to concentrate all the efforts of an entrepreneur on promoting his business.

To register yourself as an individual entrepreneur, you should contact the tax authority at your place of residence, fill out the application form for registration of an individual entrepreneur (form R21001), indicating the main and additional codes of activity according to OKVED in it. The application must include a receipt for payment of the state duty (when registering an individual entrepreneur, it is 800 rubles) and a copy of an identity document, as well as a notification of the transition to the simplified tax system in two copies.

The term for consideration and execution of all necessary documents is 3 working days, after which the applicant, in the absence of errors and inaccuracies in the information provided, is issued a sheet of record on the entry of an individual entrepreneur into the USRIP and certificates of tax registration.

Selling a used car is a highly competitive and complex market, but with a competent marketing system, you can count on a margin of 8-15% of the cost of the car. Let's talk about the intricacies of this case.

The idea of ​​opening a car dealership, which would deal with the sale of used cars, is not new in itself - however, it does not lose its relevance at all. At the end of 2021, the realities of the modern automotive market are such that prices for new foreign cars in the salons of official dealers are growing by leaps and bounds. In the upcoming "twentieth" we are waiting for another jump in price lists - just a few days ago in Russia a law was adopted to increase the utilization fee for foreign cars.

Against this background, both private resellers and larger platforms for the sale of used cars feel good. Why are there private traders - almost all official dealers of well-known brands have, in parallel with showrooms, departments dealing with "secondary housing".

How not to burn out in this highly competitive market, find your niche among other auto sellers and secure a stable income - in our today's material. We hope he will answer the main question - how to open a modern showroom selling used cars.

Business essence, advantages and disadvantages

It would seem that the essence of the business of selling used cars is as simple as possible - you find a car in decent condition on the secondary market, you bargain well with the owner, after which you "wind up" your interest and sell it at a higher price through the salon. Bingo! However, of course not everything is so simple ...

If you want to make money on the resale of cars - be ready to combine the speed of Michael Schumacher (good cars "go away" almost instantly), the meticulousness of Sherlock Holmes (the market is full of broken, pledged and simply "crumpled" cars) and the ability to sell at a level heroes from "The Wolf of Wall Street".

In addition to the above qualities (or the ability and ability to find employees who have such), it is necessary to remember about a rather high threshold for entering this business - if you are not content with the level of a reseller, you will have to invest a large sum in the business.

However, with a well-designed marketing and sales system, you can safely count on a margin of 8-15% of the cost of the car. Taking into account the fact that the average period for the sale of a liquid car is about 1 month, it is possible to promote itself well.

First Steps

Registration. The optimal legal form for opening a car dealership is a limited liability company. The classifier according to OKVED is as follows: 45. Wholesale and retail trade in motor vehicles and motorcycles and their repair.

Location. Next, you need to decide on the location of the future car dealership. You can, of course, make a significant investment at the initial stage and purchase a plot for construction, however, we recommend renting a site in a good walk-through place. It can be a car market, a large shopping center, or just an area adjacent to a busy transport highway.

In this article, we will answer the following questions:

  • How to deal with cargo transportation, having a minimum start-up capital and work experience.
  • How, despite the tough competition, to become a successful company in the region in 1-2 years and choose a niche for the long term.

Business is strategy. So that driving a truck does not remain a part-time job or a hobby, a detailed, step-by-step business plan is drawn up that takes into account the specifics of the region. The minimum planning horizon is 6-12 months. It is important to imagine the path of development, choose a niche, before purchasing transport and registering your own business.

  • 1 Market overview and competition analysis
  • 2 Business description and types of services
  • 3 A ready-made business plan for organizing a freight business, basic stages
    • 3. First stage: business registration
    • 3. Second stage: buying cars and equipment
    • 3. Stage three: choosing a room
    • 3. Fourth stage: recruiting
    • 3. Fifth stage: marketing and advertising
  • 4 How much money should be invested at the start
  • 5 How much can you earn on freight
  • 6 Possible business problems and risks

Market overview and competition analysis

Is it profitable to engage in cargo transportation, the main question of a novice entrepreneur. Market competition is high and each region has its own peculiarities.

The capital market is already represented by professional companies that provide comprehensive services and provide a high level of service. Without experience and initial capital, it is difficult to compete with them. It takes knowledge and experience to occupy a niche. For example, in a narrow area, transportation of specific equipment, works of art. More investment will be required, such as building a business on a modern digital platform and surpassing the level of service.

The regional market is also represented by small enterprises that own 2-3 trucks, or medium-sized companies, 5-15 transport units. In the state: drivers, loaders, dispatcher, manager, accountant. To optimize costs, staff functions are outsourced. Enterprises develop quality standards, direct their efforts to attract and advertise regular customers, compete with each other and with major market players. Due to lack of resources, they do not offer comprehensive services. Including, transportation by different types of transport, customs clearance, cargo insurance, warehouse storage.

In this case, the capital's business comes, including the franchise. Local regional companies are also developing and expanding to meet the needs of counterparties.

Contractors are commercial, industrial, agricultural enterprises, individuals.

When these niches are occupied, it will be difficult for a novice entrepreneur. It will take an effort to find resources, identify weaknesses, and outperform the competition.

Analysis at the planning stage also allows you to find free niches in the region. For example, the freight market in the region is represented by “gray” carriers, but there is no quality service. In this case, it is important to take advantage of the situation. Another example. A specific customer, an agricultural enterprise, is increasing its volumes and needs specific transport. A preliminary signed agreement of intent will allow attracting financing and purchasing a vehicle for the needs of a particular customer.

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