:coolgleamA: My partner and I have a passion for cars and want to be business owners of a near exotic/luxury used car dealership.
I plan to quit working in several months and using 100k to startup this luxury used car business, the first year or so the business is only required to break even so long as it is growing. Once the business takes liftoff my partner will also quit his lucrative day job to also run the company.
I have checked out the local competition, my city's market seems to have sufficient gap. I plan to start-up by leasing a warehouse near the airport, advertising nationally with a marketed website, and banking on internet sales.
I have no idea how I can start this business with only 100k. My understanding is that a moderate dealership of 40 luxury used cars would require 350k startup and a 600k floorplan. A floorplan is near impossible to get without 2 years ownership success in the field.
Even if I spend all my 100k savings I can only buy 5-7 luxury highly salable cars, and to make profit to start out I'll need to sell them all within a month and can assume that after overhead, etc I'll only make 1k per car. How the heck am I ever going to quickly grow this business to where I can yield a profitable business? I understand that a lot of 35-40 used cars will make about 100k for the owner, and 150 luxury used cars will yield a successful owner 300k.
Does anyone have dealership experience and can offer advice?
I plan to quit working in several months and using 100k to startup this luxury used car business, the first year or so the business is only required to break even so long as it is growing. Once the business takes liftoff my partner will also quit his lucrative day job to also run the company.
I have checked out the local competition, my city's market seems to have sufficient gap. I plan to start-up by leasing a warehouse near the airport, advertising nationally with a marketed website, and banking on internet sales.
I have no idea how I can start this business with only 100k. My understanding is that a moderate dealership of 40 luxury used cars would require 350k startup and a 600k floorplan. A floorplan is near impossible to get without 2 years ownership success in the field.
Even if I spend all my 100k savings I can only buy 5-7 luxury highly salable cars, and to make profit to start out I'll need to sell them all within a month and can assume that after overhead, etc I'll only make 1k per car. How the heck am I ever going to quickly grow this business to where I can yield a profitable business? I understand that a lot of 35-40 used cars will make about 100k for the owner, and 150 luxury used cars will yield a successful owner 300k.
Does anyone have dealership experience and can offer advice?
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