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In the first part of this mini-series on how to make money buying and selling used cars in the current financial conditions, we examined what sort of individual is fit to set up a used car business. In this part, we will look at where to actually establish your used car business.

So, how do you go about setting up your own used car business? The first thing to realize is that no matter whether you are setting up a part-time or full-time company, your customers and the government will expect you to behave and conduct your business in a professional manner and they have every right to do so.

If you do not conduct yourself appropriately, you will present a bad impression to your customers and get a bad name with them and you will get a bad standing with the taxation authorities and maybe the health and safety people too and be beleaguered by them with more that the average number of check-ups.

Decide what your most important market is. Do you want to specialize in used luxurious cars, middle-market or cheap vehicles? Or do you want to sell trucks, vans, buses or motorbikes? It is helpful to specialize, if your catchment area is big enough. For instance, if you live in a village miles from anywhere, it might not be worth specializing in second-hand buses, but second-hand farm gear could be a hit.

Pay a lot of attention to the site of your business. If you propose to sell one or two cars from adverts, this is not quite so important, but if you have thoughts for the future, you might want to get a small lot that you can expand on later.

This lot should be in a highly visible location, say alongside the highway that runs into town. If your location is less than ideal, you will have to spend a lot more on advertising, which is something to bear in mind, when trying to work out what you can afford to pay for the lot.

Another key thing to bear in mind before agreeing to any contracts, leases or mortgages, is to find out whether you are permitted to start a used car business in that location. Some countries have a highly complex set of rules and regulations governing which kinds of business can be located where. This is often called ‘zoning’. Sometimes you can get a ‘zoning variance’, but not always.

Once you have your site and have decided what kind of used vehicles you want to specialize in, you ought to concentrate on establishing a unique corporate image – one that is instantly recognizable to local people as denoting your business. Use a motto, an emblem or a motif or a combination of these, put up a sign and sign-write your van or tow-truck with them as well.

In the next section of this mini series, we will be looking at how to locate your stock in trade – your vehicles.

Owen Jones, the writer of this article writes on a range of subjects, but is now involved with remote car alarms. If you would like to know more, please visit our website at Laser Temperature Gun.

In the first part of this short series on how to make money buying and selling used cars, we looked at what personal traits someone wishing to be profitable in this business would have to have. In the second section we looked at the best places to locate such a business and in this section, we will look into sourcing our stock – our vehicles.

So, where can you get second-hand cars or trucks from? You will almost certainly get people coming in off the street trying to sell you their cars or trucks. That is frequently a good source of supply, if you carry out the necessary checks to make sure that they are not stolen, but this source will dry up from time to time – particularly in the summer.

Other places to obtain supply are private auction houses, bankruptcies, bereavements and government auctions, where cars or trucks are often very heavily discounted.

At private auctions, anyone can bid for the lots that go under the hammer. Sometimes there is a minimum selling price, sometimes there is not, but the seller must pay to put his car in the auction anyway, which means that he has a vested interest in selling it to recoup this cost. If a car does not reach the minimum bid, try talking to the seller privately, you could pick up a genuine bargain.

If you are unaware of local car auctions where you live, try looking in the local paper under “Up And Coming Events” or in the Yellow Pages under “Actions” or “Car Auctions” or go on line and make the same query including your region.

Government auctions are great places to buy supply of any type, including vehicles and machinery. These goods are usually either government surplus (new and used) or assets seized from the public. In The USA, it is best to register your interest in the auction catalogues of the two main governments auctioneers: the Department of Defense and the General Services Administration (GSA). Other countries have similar bodies, which your local authorities can assist you to get in contact with.

These government departments auction off tens of thousands of cars or trucks or every imaginable description every year in the USA. Cars and other vehicles form a large slice of these auctions in monetary value – you would really find it hard to grasp how many cars or trucks the government owns in the name of the people, from limos to lawnmowers. They all have to be replaced on a regular basis according to a schedule and the old ones are sold off.

The unbelievable fact that works so well in the business person’s favour, is that the government is more interested in clearing out their sheds of all this stuff to make room for more than it is in spinning a profit on it. All you need to do is register with the Department of Defense and the GSA and they will send you their auction catalogues automatically. This way you will have time to inspect the goods before you tender.

The next part in this mini series will discuss how you can work out the value of the items that are being auctioned off.

Owen Jones, the writer of this article writes on a variety of topics, but is now involved with remote car alarms. If you would like to know more, please visit our website at Laser Temperature Gun.

These days, the typical price of a new car is around the $30,000 level, so many people, confronted with austerity measures and an uncertain future job market, are thinking about buying a used car instead.

This is nothing new on its own: there has always been a used car market, but the difference is that even white collar workers who had a dependable amount of job security are entering this marketplace. People are even more loathe to take on a loan than ever before in living remembrance.

One of the consequences of this is state of affairs is that there is even more opportunity for a used-car dealer to make a very good income. This article and the other three in the series, which have the same title, will endeavor to give some advice on how to make a living out of the present market situation.

If you only want to make an extra couple of thousand, there are a number of ways of doing this, but if you want to make a decent living, then you need to set up a company and become your own boss. This approach can provide an income of several thousand dollars from a single sale. One sale a week can soon add up to quite a large annual income.

Working for yourself does have its own dangers and disadvantages of course, but the result is that you take control of your own life and decide your own salary within the parameters of the income of the business. The first thing that you have to discern, as a potential business person, is whether you have faith in yourself to make the correct decisions more often than not.

There are other advantages to having your own business than just the financial ones. There is the intellectual trial; the independence to make your own decisions; independence. Basically, freedom from having a person over you.

However, this can be a drawback for some people: those who cannot work unsupported; those who like to slope off after making a few dollars and other immature kinds of people.

So, what abilities would you need to enter the lucrative used car market? Well, the opposite of those talked about in the previous paragraph for a start. You will have to have discipline and the capacity to study and follow the law, even, or even especially, if you decide to sail close to the wind.

You will also need a head for numbers and you will also need to understand the used car market and have a feeling for people, both those that work for you and those that buy and sell with you.

This last point is very important, because if you drive someone too far attempting to get the most out of the transaction, the customer could just go next door.

It is this unique blend of person, technical and managerial abilities which will earn you a living and maybe even a fortune. In the next part of this mini-series of articles, we will discuss setting up you used car business.

Owen Jones, the writer of this article writes on a variety of subjects, but is currently involved with remote car alarms. If you would like to kcurrently more, please visit our website at Laser Temperature Gun.

categories: business,careers,home business,autos,trucks,sales,small business,management,finance,investment,self help,wealth building,motorcycles,other