Car Franchise under 20k
Car Franchise under 20k
The Car franchise world is huge, ranging from auto care, to auto sales and all points in between. But have you ever thought about the things you can do with a regular used car dealer license? This is obviously not the typical Car Franchise under 20k, but is just as good (and even better). GF Auto Consultants (470) 246-9662 specializes in setting up entrepreneurs and business owners with a used dealer license issued by the state of Florida (location, insurance, bond, plates, etc.) and help these business owners create a lucrative income from this license. We offer full marketing support and ongoing consultation support for the duration of your contract. Our marketing services can include (but not limited to) website development, Craigslist ads, Social Media ads and Google Adwords campaigns as needed. Our objective is to deliver to you a (Car Franchise under 20k alternative) Dealer license within 21-30 days and a custom built marketing campaign to immediately begin generating income for your new business.
The Basic Car Business Models
There are 3 basic business models that you can utilize with your own car dealer license. You may do one or a combination of all three. There are pros and cons to all three, but all are lucrative in their own right. When you get your dealer license through us, we provide the marketing support you need to get your phone ringing. This is your license. This is your Dealership in your name. Your LLC. You will have your own insurance, bond, 1-4 metal Dealership plates, location (Jacksonville, Orlando, Miami), Temp Tags Blanks, and Mail Service. Every April you will renew your license directly with Florida State DMV.
1. Dealer Agent 2. Auto Buying Service 3. Car Lot (Traditional )
Dealer Agent
This is the model where you derive income by providing services to other contractors under your Dealership. You can create and manage this Dealer Representative (agent) any way you like. The basic model says that you give this agent access to buy under your auction access account as your Dealership) and they will facilitate independent sales at your location. You can charge these individuals an annual fee ($999-$1500 per year) for auction access and then charge them for title and supportive documents ($125-$175 per vehicle) and services. You can more readily control this operation if it’s a moderate size and you have all sales transaction take place at your licensed facility. Just think about if you have 10 Dealer Agents each buying /selling 3-5 cars month, you can easily generate $5-7K in monthly income without you buying or selling any cars yourself. All you are doing is providing the support for your Dealer Agents. Our marketing department will start you off with your first 3-5 Dealer Agents and will train you on how to grow and manage this network. This is your money team.
- Auto Buying Service
- This is an operation that you can run by yourself or have multiple agents referring clients to you (and you pay them a commission of the sale). Essentially all you are doing is buying cars for people that you have located for them and you are just adding a service fee. This fee is usually lower than if you were to buy the car yourself with your own money. But in this scenario you are using the customers money, so you have almost no risk. The car is pre-sold, and all you are doing is using your license to buy the car at close to wholesale. You can charge $500 fee for cars under $10K. And then charge more as you buy more expensive cars. Your cost remains the same either way. You are only charging more because a person expects to pay more (a higher commission) for a 30K vehicle than a $10K vehicle. Now here is where it gets interesting. If you have an actual dealer license you can facilitate customer loans and easily plug into a vast nationwide lender network (that will only work with a licensed dealership). So the Auto Buying Model is great if you want to keep your overhead down. You don’t have to maintain inventory of cars because you are buying them one at a time as a customer orders them. You will be able to use your dealer license to buy online from nationwide dealer only auctions and go to the physical auctions (Manheim, Adesa, etc). We will get you started with ads in your local city and people will want to utilize your buying service. They will deposit money into your dealership accounts, you process their titles, and can you even issue 30 temp tags (for additional fees of course). Auto Buying Service is just a slimmer version of the traditional used car dealer lot. You need less space and you need less money for start-up inventory. This maybe your most popular option for Car Franchise under 20k. There are less upfront costs and less people to manage.
- Used Car Lot
- (Traditional model)And last buy certainly not the least, you have the traditional used car dealer model, where you have standing inventory for sale. Not your most popular choice maybe for Car Franchise under 20k, because of the higher start up costs, but is the most powerful in terms of total potential income streams. With your dealer license you are able to buy cars close to wholesale and re-sale them at retail to the public or even wholesale cars to other dealers. Times have changed and the car buying consumer has a lot of information at their fingertips. If you make your prices low and yourself easy to find, its money in the bank for you. If you have access to cars below wholesale cost, you can always build a business around that. It’s much easier to drive traffic to your used car lot these days with online marketing sites and traditional print and digital media. This model does require the most capital for start-up inventory. However if you buy one of our Aged Corp. packages, you will be able to step right into a business that has $250K line of credit readily available. Even if you just get the basic set-up you can still get access to traditional floor planning from traditional car lenders. There are other opportunities within this business model such as buy-here-pay, leasing and more.