There are approximately 256 million registered vehicles and around 210 million licensed drivers in the United States. Actually, it looks like every person old enough to drive and is licensed to do so, owns a motor vehicle or is in the process of acquiring one. While the reality of the situation is quite complex, its true to say that every person with a driver’s license in the US either owns a car or co-owns one with another person – say a colleague, close friend, or a relative.
New Cars and Depreciation
Actually, a lot of people own more than one motor vehicle. Licensed drivers who don’t own cars but are interested in one are often not willing to commit themselves to buying a new one. They turn to used car dealerships in a bid to score a better deal and save some money in the process. Used cars are way cheaper than new cars and don’t depreciate as fast.
When you buy a new car, it depreciates at a rate of 9 percent as soon you drive off the showroom. In the first five years of use, a car further loses its value to a tune of about 40 percent, making a new car such a terrible investment for a prospective car owner. Buying a used car allows the buyer to get a quality vehicle at a considerably less cost. As a result, used cars are more popular, which is why opening a used car lot is such an attractive business venture in the country.
Opening a Used Car Dealership
Of all the vehicles sold in the United States, close to three quarters are used cars. That is just one of the many reasons why starting a used car dealership is such a lucrative business for many. One of the biggest car manufacturers in the world is Toyota, and as a result, a used Toyota dealership is one of the most popular options.
So, what do you have to do to own a used Toyota dealership in the United States? Well, a lot. Putting some of the facts we’ve raised in this article together, opening a dealership may seem like a piece of cake. However, there are a lot of challenges to overcome. Some of these include the security issues, ongoing expenses, difficult licensing procedures, and high start-up costs.
Do the Math
You should never rush into any perceived business opportunity without proper research. It’s only when you have established that it’s a viable business opportunity and you have all the information that you should proceed. At this point, you should have determined the start-up costs and identified your financing options. Also, make sure that you have taken care of all the regulatory requirements.