Running a car dealership can be one of the most fulfilling jobs in the world. This is something many people here at Dealer Elite know very well. As is always the case, not everything is rosy about this career path and people who are new to the car sales game soon find out that there are quite a few things no one told them about before they opened their dealership.
The world of business revolves around competition and becoming better than your rivals. In the world of car dealerships, competition is as fierce as in any other industry and there is very little room for mistake. Depending on the size of your market and the niche you carved out for yourself, you will have more or less competition, but one thing is guaranteed – it will be fierce.
As a newcomer, you will be playing from behind and you will need to give everything you have to your new dealership. You will need to put all of your business acumen to good use if you wish to survive, let alone thrive. This will involve coming up with new ways of marketing your dealership, ensuring your expenses are as low as possible and finding ways to wow your customers.
Once again, we are talking about something that is true for most businesses you can open. Paperwork has become the scourge of small business and there is no way around it. If you wish to stay within the law, of course. And no one tells you anything about this before you actually try to open a dealership.
On a more positive side, you get to learn the endless nuances of federal, state and local legal frameworks, insurance, dealer bonds and every other piece of paper that you need to have in order to even start thinking about opening your dealership.
And this is before the actual work starts.
If you have no experience with opening a small business, make sure you have someone in your corner to help you with all the paperwork and legal stuff. A lawyer's fee is a small price to pay for the ridiculous paperwork you would have to go through otherwise.
There used to be a time when a buyer had to really try hard to find information on various makes, models and versions before walking into a dealership. Nowadays, they can read three car reviews between the time they walk into your dealership and the moment you welcome them with a cheerful "Hello!"
Buyers know their stuff nowadays and it is all thanks to the internet. They also know what the prices are like elsewhere and what they can expect to get for their money.
There are car dealers who say that this puts them at a disadvantage, but it is just a challenge that needs to be overcome with savvy sales techniques and marketing.
Still, keep this in mind. Car buyers are more knowledgeable than ever before.
It is a well-known fact that small business owners have trouble balancing professional and private lives. This includes car dealership owners too. Quite simply, there are not enough hours in a day to both put a car dealership on its legs and to enjoy a fantastic private life.
It really comes down to mathematics.
Keep this in mind. If you are already having troubles finding time for your family and friends, think twice about opening a dealership. If you know you have a strong private life backing and you know your loved ones will understand, go for it.
Do not be discouraged, please. These are just some things people omit when you tell them you plan on opening a car dealership.