Car dealers and owners find themselves in a challenging business. They must constantly stay informed on all the latest trends to learn how to best generate revenue. If you’re in this business, you’ve come to the right place for easy-to-implement ideas that can help improve your bottom line.
1. Financing Scheme
One of the great ways to generate more income is by establishing a financing scheme. Get people interested by giving them low monthly payments and interest rates, attracting customers with awful credit records. This will also increase their monthly sales as most customers like to pay in full without paying high interest rates for delayed payment or months ahead.
Further, you can consider organizing a credit workshop to teach people how they can improve their finances. It makes customers feel you’re not just after their money.
Creating financing options, though, can be challenging for someone who doesn’t have enough financial background. Fortunately, some automotive business opportunities also include a “buy here, pay here” option, so you already have this income stream set up for you.
2. Online Car Dealership and Auction
Another great idea is creating an online car dealership so that you can sell cars directly without any middleman. There are several websites providing platforms where dealers like you can sell your cars directly. This way, the customer will pay for your car, and you can earn more money on its resale.
You can also use your website for auctioning vehicles. First, your vehicle will get maximum exposure without spending anything. Second, you can receive online bids even before the auction starts. Third, using the internet to sell vehicles is not restricted by place or time.
3. Mobile Car Sales
Another way to generate income is selling cars using mobile shops or trucks. The advantage of it is that you don’t need a large land space to build your showroom. You can go to nearby places with just a truck and set up your mobile car sales business. Many individuals or small entrepreneurs favor this setup because they don’t need a large capital to start with. In addition, the threat of competition is lesser since most dealerships prefer to set up an office and showroom.
4. Maintenance Plans
For many Americans, cars will be one of their biggest expenses. They can become extremely costly when they need significant repairs and replacement, especially if they own used vehicles.
However, they can potentially bring the figures down with proper maintenance, which could be good money for you. You can set up annual or semi-annual maintenance plans. This way, the customer will come back for scheduled check-ups and other routine services that can bring in business.
5. Vehicle Trade-Ins
You can also generate more income is by accepting trade-ins. When a customer wants to buy a new vehicle, they can first bring in his old one for sale at the same time.
It creates a win-win situation for both parties. This will make him pay less for the new car because of its reduced price, while you, as the business owner or manager, can also allow your customers to use their old vehicles as part payment for a new one. Even better, you have another vehicle you can sell.
6. Leasing and Rentals
Another unique idea is the leasing option, where you offer your customers a more affordable way of acquiring a vehicle. Offer them low monthly payments and long-term contracts to attract customers with really bad credit or thin credit history.
If you find leasing to be more complicated, you can offer your used cars as rentals instead. You can charge your customers on a daily, weekly, or monthly basis.
7. Extended Warranties
Another great idea to increase your monthly sales is by offering extended warranties or service contracts. This way, you’ll sell vehicles even if they are already used because the customer will still feel safe having this additional service. Also, the customer will still return to your business when the need arises for this extended service.
8. Used Vehicle Inspection
Another possible money-making service you can offer is used vehicle inspection. You’ll have to visit the car on-site, check its function and condition, then issue a report that could be given to potential customers so they won’t be at a loss if they buy the car. You may request to be paid for your service, or you can allow the customer to call in advance, so he can have his car checked before you show up.
These are just some great ideas that will help you run a profitable used car business using very little capital or start-up money. There are other possible money-making ideas you can add to your list, but it all boils down to what you can do with the resources and opportunities you have.