Car dealership is a retail business that sells new and used cars. Some dealerships have contracts with car manufacturers and work as subsidies, while others sell used cars and car parts. In order to establish a closer relationship with their customers, dealerships often have a service and maintenance department that also conducts warranty repairs.
Costs of opening a car dealership are very high, and they can easily exceed $1 million. Thats why you should carefully plan your future business operation and determine its profitability before you start. In this article, were going to review some of the basic steps for opening a car dealership.
1.Perform market research
Before you start a car dealership business you need to determine whether theres a demand for new or used cars in your area. This can be done by investigating the number of sold cars and conducting further analysis in order to learn which manufacturers, categories and models are the most popular ones.
This is very important, because if you for example determine that Ford F-1500 is the best-selling vehicle in your area, you can open a Ford franchised dealership or dealership which specializes in trucks. Since the initial expenses for opening a car dealership are very high, you need to fill your car lot with vehicles that are both useful and affordable to local consumers.
Market research usually continues with establishing the profile of an ideal customer. It is essential to determine their age, gender, employment level, interests and other demographic and behavioral characteristics. In order to gather the information, you can implement market research tactics used by car manufacturers. You can also assign names and photos to each ideal customer profile in order to make your future marketing campaigns more personal.
2.Choose the type of dealership
There are several types of dealerships to choose from. Most big dealerships are franchised by car manufacturer giants. Franchise allows them to use the manufacturers logo and become a part of their marketing strategy. In order to open a franchise, youll need to sign the franchise agreement, provide financial disclosures to the car manufacturer and pay them a franchise fee.
You also need to choose between selling new cars, used cars or both. Most dealership owners go for the third option, but you should know that this requires you to invest a lot of time and money. Used cars usually attract customers who want to spend less than $15,000 per vehicle and they also require more service and maintenance.
You can easily turn these used cars shortcomings into a business opportunity. Many used car dealers decide to open a service and maintenance department, which allows them to earn more money and build strong relationships with their customers.
3.Plan your finances
Buying the first batch of cars and filling out the inventory is the biggest cost of every new dealership. When you add property lease and costs of building renovation, franchise fee and service department opening, you can easily spend several millions of dollars before you even start selling the vehicles.
Don't forget to also include auto dealer bonds, as most states require you to have one in order to operate a dealership. Auto dealer bonds also offer tax benefits, since by incorporating them you are allowed to write off expenses such as health insurance and life insurance premiums.
Since financing your dealership is such a huge commitment, you should carefully review every potential funding option. Most car dealers finance their floorplan through specialized bank loans, where their car inventory serves as a collateral.
4.Dont forget the regulatory requirements
Whatever car dealership you choose to open, youll need to go through an auto dealership license application process. In order to get the license, youll need to buy an auto-dealership surety bond that protects your buyers from frauds related to car purchase. Youll also need to obtain several other forms of insurance and building permits if you want to build the car lot and dealership offices from scratch.
5.Employ skillful car salesmen
Dealerships employ car salesmen who work for commission and have great negotiation and presentation skills, since used car prices are often negotiable. You should employ at least one qualified salesmen per shift who will teach the new, less experienced staff the basic car sales tactics.
The nature of car salesmen work is the source of many prejudice. In popular culture, they are often depicted as manipulative and greedy. Some of the most notorious car salesmen characters include: Mad Man Mooney from Muppet Movie, Harry Wormwood played by Denny DeVito in Matilda and a fast-talking car salesman from American Graffiti played by John Brent.
Since the nature of car salesmen business drastically changed after the 2008 Economic crisis, you need to explain to your employees that hard sell tactics are not as effective as they used to be. At the moment, Tesla Motors is lobbying and filling lawsuits against the states that have forbidden them to sell their cars directly to consumers. Significant portion of the public supports Tesla Motors appeals, which is why new car dealerships need to cater a harmonious relationship with their customers, build an e-commerce website and use it for online car sales.
Many people purchase used cars every year. It is estimated that tens of millions of used vehicles are purchased from a dealership as well as private parties. With so many vehicles available, it may be a challenge to discover the one that fits your individual driving needs. There are at least ten steps to consider when looking to purchase a used car.
It's important a person know how much they can put toward their used car purchase before they start looking. Car finance experts recommend that a person's car payment should not be over 20 percent of their take-home pay. Should a person's finances be tight, they may want to consider a lower percentage.
Once a person has determined the amount they can comfortably spend on a vehicle, they need to research what vehicles are within their price range. People with children will want larger cars and environmentally conscious single people with no children may want a hybrid. The good news is there are thousands of used vehicles available. There is a good chance a customer will find one to fit their individual situation.
3. Vehicle History Report
It's possible to buy a vehicle from a family member or close friend who is honest about its history. In most cases, it's recommended to get a vehicle history report. This is an important part of buying a used vehicle. Should you be interested in a vehicle that has a bad history, it's better to know as soon as possible.
4. Contact Seller
Once you see a car that gets your interest, it is important to contact the seller. The next step is to verify all of the information you've obtained about the car. This is a time to learn about any recent mechanical problems and more. This is also a good way to determine if the vehicle is still available to be purchased.
5. Vehicle Inspection
Should the vehicle be purchased through a private party, it is very important to have the vehicle inspected by a qualified mechanic. This can also be a good idea with certain types of vendors. If the seller isn't willing to permit such an inspection, it may be time to avoid the potential problems and move to another vehicle. Refusing an inspection makes the seller appear to be hiding something important about the car.
6. Test Drive
Test driving a used car is the most effective way to know if it is the car that will work for you. This is the time to personally assess a car's condition. Walk around the outside and see its exterior. Notice if it's easy to get in and out of the car. See how easy is is to make the seat, steering wheel, and other adjustments. Pay close attention to how the car handles when driving it.
7. Negotiate A Good Deal
Many people don't like talking numbers with a seller. This can be a good experience when a person has a plan. Be aware of anything that is wrong with the vehicle. Before the negotiations start, it's important to know how much to spend, and start with a very low offer. Try to meet a price in the middle between what price you offer and the seller initially offers.
Should a person be buying a car with financing, it's important they think about refusing a variety of extras that will be offered. Things such as rustproofing and etching need to be carefully considered. Warranties and insurance can be purchased from places other than a dealership and might be a much better price.
9. Don't Buy Today
It is important to resist any pressure from the seller for a quick sale. This pressure decreases significantly when a customer walks away. In many cases, a customer will get a better deal because the seller doesn't want them to possibly get a good deal with the competition. Demand that any offers be put in writing.
If buying from a dealership, a sales contract and financing paperwork may be involved. Insurance will have to be arranged. There will be fees for registrations, warranties as well as tax and more.
It seems that the Kia Soul hatchback has suddenly grown up and become hip. The 2014 version is not just a larger model than the original Kia Soul hatchback; the interior design of the new Kia Soul takes practicality to a whole new level.
The second-generation version is obviously aimed at younger car buyers who want a distinctive style (for that read “boxy” with upmarket appeal), and who need a car with seating for passengers of all ages, from new born baby to elderly grandparents.
Five trims are available for the discerning car buyer to choose from, with higher class models providing additional features, such as satellite navigation, reversing camera and Bluetooth.
With style-conscious car buyers in mind, Kia offers a touch more class with its highest spec models. Top of the range models feature an eight-inch touchscreen, leather seating and a more stylish exterior appearance, enhanced by glossy black roof rails and wheel arch extensions.
The new Kia Soul can comfortably seat every member of the family or a set of friends. Child safety seats can easily be installed and three big adults could easily travel in comfort in the wide back seat where there is plenty of headroom.
With a wheelbase thats slightly longer and wider than the original, there should also be adequate legroom.
The new version is also closer to the ground, which makes access easy for the elderly and for the very young.
With up to five passengers seated comfortably inside, it will also be easy to store all of their gear in the back. The boot space has been increased to 354 litres, with some additional space for storage underneath the floor of the boot.
But hold on, thats not all, you get a lot more storage space with the seats down. The rear seats wont fold completely flat and they dont slide, but if you want to stack things in the back of the car, up to the roof, with the seats down you have a storage area of 1,367 litres.
Tidy car owners will surely appreciate the size of the glove-box, the depth of the door bins, and the handy cup-holders in the central console.
Two engine types are available and (try not to get too excited!) an all-electric version of the Kia Soul is due to be released some time in autumn 2014.
The cheaper petrol engine model is not turbocharged and its not the most economical car to run. The six-speed diesel engine, with manual or automatic drive, can be somewhat noisier, but the sound does drop when the car is in cruising mode.
Driving modes can be switched at the touch of a button and both engine types provide smooth motorway driving. The Kia Souls improved suspension should please anyone other than the most hyper-sensitive driver or passenger.
The second-generation Kia Soul is a reliable car which is also very different from other hatchbacks, particularly for its easy access and seating to suit the elderly. It has enough interior space for everyone to be comfortably seated and is large enough to pack a lot in.
This is a “Tardis” car. It really does seem to be bigger on the inside than it looks from the outside.
How hip is that!
photo curtesy of https://www.berwickkia.com.au/soul
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Even at the best of times, driving through a city is dreary, stressful and time consuming. The endless traffic jams, a red light every 50 yards and the occasionally oblivious pedestrian can all make commuting a frustrating and negative experience.
Luckily, there are some cars that make these sorts of journeys not only a little less taxing, but even fun - and the Fiat 500 is one of them. You may even start looking forward to travelling to your 9-to-5!
Full of Personality
With some cars you can sense that they have a real personality, and none are bigger than that of the Fiat 500. What it lacks in size, it more than makes up for in pep and sass. It’s bright, upbeat and cheeky, and this attitude is often transferred to the driver through the steering wheel.
When manoeuvring around corners the Fiat 500 adds a little bit of excitement to your trip. With it being close to the ground, generating a low centre of gravity and a narrower wheel base, the 500 is extremely agile around corners. An added bonus of this shorter wheel base is the turning circle, which in the 500 is very small. This means that having to turn around, which can be something of a nightmare on city streets, has been made that much easier and more straightforward.
You Create the Style
With a wide range of trim levels, options and colours, which reaches a staggering 500,000 choices, you can add your own personal touch to the 500 and make it a home away from home. This includes the Pop, Cult, Colour Therapy, Lounge and S, each with the option of a wide range of colours and optional extras such as a chequered roof graphic.
The surprising performance that the Fiat 500 unleashes out of its modest four-cylinder engine certainly packs a sizeable punch, even to the most hard-core of petrol heads. Although the output from the 1.4 litre engine might not sound too impressive; 101 BHP, peaking at 6,500 RPMs, and 98 foot-pounds of torque, at 4,000 RPMs; the performance it achieves far exceeds the raw numbers. Around town, the 500 feels exceptionally quick. This is in part due to its lightweight body, helping the Fiat 500 reach a speed of 60mph from a standstill in a time of just over 9 seconds. This beats similar cars with a comparable size engine such as the Ford Fiesta and Peugeot 208 for sheer pace.
City driving doesn’t just hit you physically and mentally, it also hits your wallet. With the constant stop-start of driving in a town comes a huge hit in gas usage. The average car can see its fuel efficiency plummet by as much 60 %, and while the 500’s economy does drop, it still boasts impressive figures. Starting with a highway figure of 40 mpg, this falls only slightly in an urban environment to 31 mpg, making city driving a little more care free.
The Fiat 500 is a small car, but one that comes with a huge personality. It boasts a unique and stylish exterior retro design based on the classic sixties 500. This, coupled with its comfortable and spacious interior, makes it a pleasure to drive and be a passenger in. No longer will driving in a city be tedious or dreary, well, not if you’re behind the wheel of a Fiat 500 anyway.
Traveling long distances by car can be a bit of a tricky situation. This is especially true in places where weather conditions can become extreme. Extremely cold or extremely hot temperatures can influence a car to break down and leave you stranded in not so favorable conditions. But, even in normal weather conditions and with a new car, it can still breakdown and when on the open road, this can complicate a lot of things. A car malfunction doesnt necessarily need to be the source of your misfortune. There are a lot of things that can happen and you need to be prepared so you can avoid any discomfort.
There are a few things that can mean a lot in these kinds of situations and you should have them in your car at all times or at least when you are going on a longer trip.
1. First Aid Kit
A first aid kit is obligatory by law, but I still think its worth mentioning since some people tend to disregard it as useless. It isnt just useful for you; you can also use it in situations where you witness a car crash to help the people that were involved. In extreme situations, a simple first aid kit is invaluable.
When traveling to distant locations for the first time, you can easily misinterpret a map, but a GPS will guide you without failing. Getting lost can be a big setback, especially when you are in a hurry or if you planned out your gas stops along the way.
3. Jumper cables
An empty battery can render your car useless. Always carry a pair of jumper cables just in case. Again, it is common courtesy to help other drivers in need and you may need it more than you think.
5. Fire extinguisher
Im not saying that car fires are common, but when they break out, you need to react fast in order to minimize the damage to your car. A small fire with no way of putting it out can destroy your vehicle to a point where it is beyond repair (or to a point where it is cheaper to buy a new one).
6. Flash light
When your car stops in the middle of nowhere and its the middle of the night, even a minor malfunction can be difficult to repair. Im not going to elaborate on other useful applications of a simple flashlight, they are quite obvious.
7. Cellphone signal amplifier
Some people suggest that you always have an old cellphone, fully charged in your car and this is a good idea but if you dont have reception, you cant really use it right? A cellphone signal amplifier is a handy tool to help you reach a towing service or make that important phone call on time.
Depending on the area you live and most commonly drive in, you might need more and you can ask your local authorities what their suggestions are when it comes to emergency equipment for your car. Be safe and have a nice drive.
Think about what you want to improve about your car. Is it the acceleration? Is it the stopping power? Is it the ride quality? Is it the fuel consumption? It could be any number of things going on a spending spree at AutoZone or your favorite performance shop might not get you to your desired goal.
Estimated cost: $100-$300
Benefits: Improved acceleration and fuel economy
A cold air intake is the first and easiest mod that anyone can do in less than an hour. It consists of replacing the stock, restrictive air box for your cars intake. The premise is that by allowing air to flow naturally without any baffles or restrictions, your engine is able to breathe easier to access more air when needed, such as when using an on-ramp to join a highway. Depending on the design of the intake, you could just make it breathe hotter engine air, so try to select one that seals off the engine bay from the air filter area. These kits often come with a long-life air filters that require different maintenance and cleaning intervals for optimal performance.
If you find that you ford rivers or deal with significant downpours of rain, dont leave your intake exposed to the outside elements, or youll hydrolock your engine. (I did this once, #fail.)
Estimated cost: $250+
Benefits: Improved acceleration and fuel economy
Difficulty: Medium (seek an automotive shop for installation)
Along with a cold-air intake is the second mod that many people are very familiar with: exhaust upgrades. Assume for a moment that your engine is a water pump, sucking water in and pushing water out. You need to make sure that the pipes you have for your exhaust enable air to escape freely. If you do an intake upgrade, its a good idea to upgrade your exhaust. Aside from sound enhancements, it allows your engine to run more efficiently. Following my intake and exhaust upgrades, Ive seen about a 5% improvement in my fuel economy.
A cat-back exhaust system entails everything after the catalytic converter, so its completely legal to change .Not all Cat-Back Exhaust systems have to be obnoxiously loud. With the use of resonators and mufflers, it can still be high-flow and lower-volume but its safe to assume it will be significantly more noticeable than your stock exhaust system.
HIGH PERFORMANCE TIRES
Estimated cost: $500 $900
Benefits: Improved fuel economy and handling.
You regularly check the air pressure and wearing of your tires, right? If not, get in the habit of checking them at least once a week or so. Doing so will help you catch problems before they become disasters. That said, one way to improve fuel economy and handling is to invest in a good set of lower-resistance Summer Tires so you dont needlessly add more rolling resistance to your car.
Assess your driving behavior and situations to decide if these are appropriate. If you typically experience all four seasons, stick with an all-season/terrain tire.Im not suggesting you go nuts and get Mickey Thompsons on your car. Research the reviews from thousands of other drivers on tires on a site like TireRack, compare their UTOQ ratings and look into professional reviews of the tires when making your decision.
Nissan is working to make its eco-friendly Leaf automobile into an alternate energy supply for homes in times of crisis. The Japanese company is working to gear back up to full production after the recent natural disasters, and at the same time, develops the new technology. Source for this article - Nissan developing an electric car that powers homes by Car Deal Expert.
Considered pure electric
The Leaf went on sale last December. It is a fully electric automobile that runs solely on battery energy. The Chevrolet Volt and other eco-friendly vehicles are typically hybrid vehicles. They use batteries backed up by a gas-powered generator. A high-performance, 24kwh lithium-ion battery can be found in the Leaf. If you need one, you'll have to pay about $37,000 or 2.98 yen.
Automobile to be used for generating energy too
The Leaf EVs (Electronic Vehicles) will have engineering to power homes be put in them according to Nissan president Carlos Ghosn. The business hopes to have the new cars in showrooms within a year.
The recent earthquake and tsunami destruction in Japan has piqued interest in the automobile. Hideaki Watanabe, head of Nissan's zero-emissions cars, explained "Some people are saying that instead of installing a generator, they would just buy a Leaf." In Japan, you can get a household storage battery similar to the Leaf for about 2 million yen, or $25,000.
The Leaf is able to store as much as 24 kilowatt hours. The U.S. house on average can run for a whole day on that much energy. In times of emergency -- energy outages for example -- the automobile could possibly be utilized to charge the next day's energy overnight.
Charge units not yet available here
Without additional hardware, Nissan hopes to market home-powering vehicles. One option, according to Watanabe, is to connect the car to the house via Nissan's quick-charge unit, which restores about 80 percent energy in 30 minutes. Charging the auto could take 20 hours for a normal outlet. So far, the quick-charge units are only available in Japan and run about $15,000. Hopefully, that cost could be dropped to $10,000, Watanabe says.
Plant opening pushed back
About 7,600 Leafs have been sold to date, and about 2,000 of those went to United States auto owners. The recent disasters in Japan, however, greatly slowed production and may delay the plans to open a U.S. manufacturing plant in Smyrna, Tenn. That opening has now been tentatively pushed back to late next year. "Because of the earthquake, it's putting us in a difficult situation," Watanabe said. "But we're not giving up yet," he said.
Business Link Japan
Detroit Free Press
Testing, 123 is this thing on?
Not happy about missing the race this weekend. Was fun last year. Driving is all about moving at a comfortable speed unless you HAVE to drive fast and then come to a halt due to unforseen circumstances.
Unforseen circumstances just suck plain and simple. So while not actually driving, I have a project car of my own. It is the best to watch the cars zooming by everyday outside ye ole merry apartment even tho there are no wheels of my own to be parked YET. My project car as of late is in the infant stages. Just a question, does anyone know anything about car batteries?
Hello everyone, My name is Javier Vera I am the new ENEOS Sales Agent for the West Coast. Please reach out to me regarding your next car event so I can attend and maybe bring out our ENEOS booth with promotional items.
We are also looking for retailers who might be interested in carrying our oils and transmission fluids.
ENEOS Motor Oil