Car dealership + ideas

[Jdis]

Hi everybody,

I have an idea I would like to sell to some small car dealer around here.
What about:
Renting a space for people to sell their own car.
ie: For 100 buck, we will take care of everyting, ads in newspaper, tv, internet, + can park your car with our inventory so people can see it more easy.
If you only get one car and need it to go to work...
100 buck (refundable if you sell it before we do) ... and it would be like "house rep" .. but a "car rep".
Make a commission on every car people buy and/or sell.
What do you think about it? ... We would be able to have a bigger database of people selling their car so we can resale it easy.
We find the car you want at your price.

Sorry for my bad English this is not my main language. ( I would work in French... lol)

[rogercbryan]

What country/state are you in? My company does consulting for the auto sales industry. I would be glad to work with you.

[ltressel]

Jdis,

It's a good idea. Here's just a few things that you need to make sure that you might want to think about further.

I am not sure how much print ads cost in France, tv adverts, and whatever else you choose to run advertising. If you ran an ad and say it cost you $20 dollars (equivalent to euro) and have to refund the $100 later on because the seller furnished their own buyer, you would be $20 in the hole.

That will not be good business for you because you are not covering your overhead. I'm sure that you will still think more about this business further on. I am only posing scenarios that you need to think about down the line.

Some other things to think about:

1) Will it cost you money to have people park their car along with your inventory?

2) Who else is in your payroll? Would $100 per car suffice in covering your costs of operation?

3) How many cars do you have to sell per month to augment the needs of your business?

We have your idea here in the states. They are called car brokers. They use other dealerships inventory and negotiate all deals for their customers. The customer will only need to supply what car they want and take possession of the car after a deal has been made.

They never had to set foot in a dealership parking lot because the car also get delivered.


Just a few thoughts-


LT

[rogercbryan]

I run this exact same business in Cleveland, OH. We charge 20% of the sale price up to $500 as a fee + a $75 admin fee (for titles). You may want consider a higher fee structure. ltressel has some good points. I don't think you'll be able to cover your overhead at $100 per car.

[Jdis]

Hello again
Thanks you people for taking the time to post your answer

At least, you understood what I expect to do!
Car brokers sound very good to what I am thinking.

I am in Quebec, Canada, and one advantage is that I don't have to worry about putting ads on tv and newspaper to sell car
Also, if I can affiliate with a small can dealer here that I already targeted, Why woulld it cost something to use their "free space" for people to park their car if they want to?
Exept my time, I think it will almost be pure profit that I would share with the car dealer.

[Jdis]

What I forgot to say.
When we would try to sell a vehicule, we negociate to the lower price the seller agree with and would fix our selling price to make a small profit.
Would it be more profesionnal / honest to fix a rate % instead of fixing a price by ourself after?
Thanks you again for comments / suggestions / questions ... and hope my English speaking doesn't hurt your eyes to much! haha
I love read people here and I understand well .. at least!

Have a nice day everybody