Can you make money with a small used car lot

Standing usex a car dealership reveals an armada of shiny new vehicles. If you could look behind the curtains of the dealership, you would amall that each and every operation you are passing by is set up as a profit center—all of them competing for the money in your wallet. So who typically wins this war of dollars, and how does the dealer actually make any money? The answers might surprise you. Big dollars, factory fresh complete with that new car smell —you would think this is where the big bucks are kept, and in many ways you are correct. Because they are a high-ticket item, new car sales account for over half of the total gross sales at the dealer. Dealers secure inventory by borrowing money, sometimes from the mwke, to get all those cars into the showroom and onto the lot. The longer the cars sit, the more interest the dealer has to pay on the loan. Cash flow, yes. Profits, no.

Make Money with Your Car

They’ll try to guilt you into paying a higher price, but don’t pay attention to the whining. I’m going to reveal how dealers really make money, and why you should never feel sorry for them. First of all, most people assume that dealers pay for all their vehicles and have a bunch of money tied up in their inventory. This is false. The vast majority of dealers take out loans to build their inventory and are essentially «renting» the vehicles. If a dealer sells the vehicle in less than a month, they will make a tidy profit simply on the holdback amount. But we’re just getting started. But wait, there’s more! Way more Most dealers don’t make the bulk of their profits on the sale of a new car. The big profit usually comes through arranging car loans, selling add-ons, and making money on your trade-in. They simply low-ball your trade-in, then turn around and sell it for a nice profit.

10 Ways to Make Money with your Car

Of course, that large a profit is not typical, but most dealers do make the bulk of their profit in areas other than the actual sale of the vehicle. Think about that next time a dealer is whining about not making any profit. These sites show you no-haggle prices from dealers closest to you — and the deals are usually really good. This should be the first step you take when negotiating your car price. Follow this up with my checklist to make sure you squeeze out every last bit of savings. After being ripped off on his first car purchase, he devoted several years to figuring out the best ways to avoid scams and negotiate the best car deals. He has written hundreds of articles on the subject of car buying and taught thousands of car shoppers how to get the best deals. Got a Question About This Article?

Apply for Financing

Owning even a small used car dealership entails much more than just putting some cars on a lot and waiting for customers to come along. It requires knowledge of the cars, expertise in their features and differences, knowing competitive prices of similar models and how to arrange vehicle financing. Before you even put the first «For Sale» sign on a windshield, you’ll need to select a location, understand local licensing requirements and have a plan for acquiring your first vehicles. Before beginning your venture, it’s important to develop a business plan. A business plan should include an analysis of your industry, your local market as well as projected financial returns, including when you expect your business to break even. A business plan serves multiple purposes: getting your business ideas out on paper can help you to identify challenges and weaknesses in your plan. In addition, by running financial projections, you can determine whether your revenue model is a feasible one. You should also be aware that investors and lenders will want to see a business plan before deciding to work with you. A quality business plan can help you secure the financing that you need. Unless you already have the money necessary to get your business started, you’ll have to seek financing.

Used Car Sales

Shoppers in search of an inexpensive used car often start with the used-car inventory at a new-car dealership. Some go straight to private-party car sellers. But those options don’t suit everyone. Maybe you’re leery of handing money to a stranger. Or perhaps the used cars at new-car dealerships are too pricey for you. Perhaps you want to browse a variety of used makes and models in one place. If any of these describe you, consider visiting an independent used-car dealership, which abound in the U. The National Association of Independent Automobile Dealers has 20, member dealerships, from small family-owned stores to nationwide chain stores such as CarMax, which has more than locations across the country. In addition to general-purpose used-car lots, here are some places you might shop, depending on your interests:. But it’s certainly not a corner car lot. Each store has hundreds of cars in inventory and, unlike most dealerships, CarMax has a no-haggle pricing policy.

You could also specialize in transporting people to and from the airport. Especially if you have a high end car like a BMW or Mercedes then it is even better. I know there is a problem with food truck because you may not be into cooking and catering. Mileup seems the easiest but not sure the chances of me winning a sweepstakes. Learn how to manage all of your calls — especially during peak periods. They will book your car for a day or two.

Develop a Business Plan

If you enjoy spending time in your car, you might be able to parlay that into a nice side hustle for some extra cash. The most notable are those where you drive people around… but you can earn money shuttling packages. Sometimes you don’t want to deliver people, or risk having to go very far, so consider these two if you don’t mind hustling around food. This is also a good option for folks who don’t have a car all the time — you can deliver DoorDash, Postmates, and uberEATS by scooter and even bicycle!

DoorDash is one of the fastest-growing delivery services I’ve seen in a long time and there are a lot of opportunities on the platform. With Instacartyou can sign up to be a grocery shopper and deliver groceries. With the full-service shopperyou’re going to need a car and will shop groceries on-demand. You take on jobs, do the shopping, and deliver the orders. You’ll need a car but you can choose the hours that are best for your schedule.

With the in-store shopperyou’re just shopping in the store and collecting all the items within an order. You have to commit to a schedule, which is flexible, but you only have to can you make money with a small used car lot and do not need a car to do this role. You can make money delivery alcohol beer, wine, liquor if you are in an area serviced by Saucy. If you are in those markets, you can help meet their minute delivery promise and earn money in the process.

You can delivery by car, truck, or motorcycle. AmazonFlex is Amazon’s flexible work program where you deliver packages. The work itself is straightforward. You get packages and then deliver them using their Android app.

When you drop off the package, scan the barcode and move onto the next address. One of the best ways to make money with your car is to drive people. Lyft has changed the way taxis are operated, especially if you live in a suburban area and have no idea who to call if you want a ride to the airport. We’d be going to Taiwan for a month so it beat parking at the airport by a longshot.

This means that if you own a car, you could start earning money in your spare time. Many of my friends who drive for Uber will fire up the app, see if there are fares, and just grab a few as they wait. Drive with Lyft — You can rent a car to drive if you don’t have one! If you do a lot of driving, you might be able to make several hundred dollars a month as a rolling billboard. Register with a company like FreeCarMedia. If you have any extraordinary driving situations, like your regular commute is a significant distance, include those in your application so potential sponsors know.

Not all advertising opportunities are the full car wrap variety — sometimes it’s as little as a rear window decal you can apply on your. Not bad! If you own a truck and don’t mind lifting heavy things, you could join Task Rabbit and haul away people’s stuff. It could be helping them move from one place to another or just hauling a few items down to the dump for.

The best part is you work at your schedule and pick the ones you want to complete based on your rates. Moving, delivery and hauling are some of their most popular categories. Jim has a B. One of his favorite tools here’s my treasure chest of tools,everything I use is Personal Capitalwhich enables him to manage his finances in just minutes each month. They also offer financial planning, such as a Retirement Planning Tool that can tell you if you’re on track to retire when you want.

It’s free. He is also diversifying his investment portfolio by adding a little bit of real estate. But not rental homes, because he doesn’t want a second job, it’s diversified small investments in Fundrise and a farm in Illinois via AcreTrader.

Remember that business use of your car is excluded from standard personal auto insurance policies. If you cause an accident, or injury while performing these types of side hustling, your personal auto policy might decline paying for the claim. Talk to a reputable insurance agent. I have an old Mustang Convertible with low miles in very good condition. Mileup seems the easiest but not sure the chances of me winning a sweepstakes.

Would have preferred Amazon gift card or. I do have a long commute so I do rack up a lot of miles. Will have to do some more research on that side hustle. Nice article Jim. Another one here in the UK is Easycar, where you basically rent out your car to other people.

In addition to uber, there is the Lyft app that matches passengers with local destinations. All you need to do is register and pick and drop clients as you go. If you live on a campus or other densely populated area this could be the perfect way to make something extra. There are various subscriptions for app users that will ensure you have the most appropriate package for your ride even if its just to find a group to chip into and make conversation on your commute.

Your email address will not be published. Save my name, email, and website in this browser for the next time I comment. This site uses Akismet to reduce spam. Learn how your comment data is processed. Check out the free tool I use to track my money! Learn. One thing to keep in mind is that all of these side hustles will add miles to your car’s odometer and the associated wear and tear. When you calculate how much you earn, remember to include that in your decisions on what opportunities to take advantage of.

You can deduct your mileage when you drive, and you will want to, so keep good records of it so you can use it without fear of a tax audit when it’s time to file.

Table of Contents. Other Posts You May Enjoy. What is Crowdfunding Real Estate Investing? Comments Remember that business use of your car is excluded from standard personal auto insurance policies. Because we live in a beach area, I think there could be a might be a small market for it.

Ooooh, you should and let me know how it goes. I personal think Lyft app is uch better option than uber. Leave a Reply Cancel reply Your email address will not be published.

Disclaimer I am not a financial adviser. The content on this site is for informational and educational purposes only and should not be construed as professional financial advice. Please consult with a licensed financial or tax advisor before making any decisions based on the information you see.

Advertising disclosure: I may be compensated through 3rd party advertisers but our reviews, comparisons, and articles are based on objective measures and analysis. For additional information, please review our advertising disclosure.

If you’ve always dreamed of owning your own business and you have a passion for automobiles, then starting your own car dealership might just be small match made in entrepreneurial heaven. Considering consumers are always in need of quality new and used cars, owning a car dealership offers an impressive job outlook smxll plenty of career growth. In order to help you shift gears and become your own boss, here are seven tips for starting your very own car dealership. Image via Flickr by Emilio Labrador. Before you begin lining up cars on the lot, you have to decide whether you want to deal primarily in used or new car sales.

New Car Sales

The new or used route will set the framework for the rest of your dealership endeavors. If you choose to start a new car dealership, it’s important to keep in mind that the initial investment is substantially higher than a used car dealership. This means you’ll likely need an investor or financial backing from a bank.