Franchises

How Used Car Franchise Is a Profitable Business

Used car franchise business is an emerging sector which is expected to grab more people's attention in near future
How Used Car Franchise Is a Profitable Business
Image credit: Shutterstock.com
2 min read

You're reading Entrepreneur India, an international franchise of Entrepreneur Media.

Imagine how buying an old car from a seller and modifying it for reselling at a feasible amount could be a lucrative business idea.

A used car business franchisors earn profit by selling used cars. With the constantly evolving franchising industry, numerous new segments are coming up, offering plenty of job and business opportunities for investors and franchisors.

Used car franchise business is an emerging sector which is expected to grab more of people’s attention in the near future.

The used car business is a very competitive market, as there are opportunities for earning big while investing a low capital. This business requires skills and knowledge about the cars and people who are needed to be dealt with. Franchisors are finding quality cars, fixing them and making them more valuable.

Finding dealers

A steady inventory of reliable cars is essential while establishing your business. Therefore, locating dealers is an essential step while coming up with a used car franchise business. Many places have auctions which could be an essential place for picking up used cars for your business. This will tend to keep the pricing low, providing a good outlet for dealers.

Relationship with the mechanic

If you lack skilled staff at your venture, don’t worry, as establishing a relationship with a good mechanic could resolve this issue. Having an employee who is an experienced mechanic could do the trick, but opting for a third-party mechanic service could also be the best strategy.

Going for minor repairs to the used cars can provide you with a hefty profit at the time of sale.

Offer a reasonable warranty on the cars

Plan your business accordingly. Try providing reasonable warranties on the cars you sell which could result in establishing trust, encouraging word of mouth marketing by your clients. 3-6 months of warranty could most probably do the work for you.

This article was initially published on Franchise India by Shahram Warsi.

More from Entrepreneur

New York Times bestselling author Nicole Lapin can help you pitch your brand to press and strengthen your media training.
Jumpstart Your Business. Entrepreneur Insider is your all-access pass to the skills, experts, and network you need to get your business off the ground—or take it to the next level.
Starting, buying, or growing your small business shouldn’t be hard. Guidant Financial works to make financing easy for current and aspiring small business owners by providing custom funding solutions, financing education, and more.

Latest on Entrepreneur