Becoming Your Own Boss: Surety Bonds and Other Requirements for Running a Used Car Dealership
Three years ago marked the beginning of the recession. And, although the country is not entirely healed, signs of progress are visible. Americans have begun to trust in the economy again and spend. An industry that is experiencing financial growth and promise is used car dealerships.
Sales within the car industry grew over 10% from 2010 to 2011. If this increase continues, by the end of 2011 almost 40 million used cars will be sold. If you’ve always wanted to start your own business and have a passion for the automotive industry, a used car dealership is full an opportunity showing prosperity for the future years.
What are the steps to start your own car dealership?
- Find locations in your area to start your shop. The area should be a commercially zoned, flat lot.
- Should you not already have one, secure a dealer’s license from your state Department of Motor Vehicles. Typically this consists of passing a written test, completing an application, and paying a fee before receiving a license.
- Obtain a used car dealer bond to meet state surety requirements. This will ensure your customers are protected from cars with hidden problems.
- Supply your inventory. Determine whether you will buy and trade used cars from community members.
- Find a bank to become the lender for your dealership.
- Hire staffers. You’ll need mechanics and salesmen to help you take the load of your shoulders.