xt61991 Posted December 29, 2008 Share Posted December 29, 2008 Ok so maybe im crazy. This has always been something i have dreamed about doing. I love subarus i have a 04 sti, a 99rs that im trying to sell(http://www.ultimatesubaru.org/forum/showthread.php?t=94132 sorry for the plug) so that i could buy my wife a new forester. I have had a subaru almost my entire driving career, and as soon as i got any money save up i would blow it on another suby. So i guess love is what makes a subaru. I have always thought about start a suby dealship, used or new don't care. I am just not sure where to go suby has zero info on there page, and its hard to find anything about starting a used car lot. :banana:well thats it, I hope im not the only carzy fool on here.:banana: Quote Link to comment Share on other sites More sharing options...
Durania Posted December 29, 2008 Share Posted December 29, 2008 It does sound like an appealing idea but I'm not sure about how one would go about starting one. I guess contact SOA directly would be the best bet. I assume that these would be handled like franchises and would also be based on the area that you are wanting to set it up in. I have seen where many dealers have been closing, you sure this is something you would like to do in this day and age? Quote Link to comment Share on other sites More sharing options...
idosubaru Posted December 29, 2008 Share Posted December 29, 2008 Subaru doesn't supply "used car" lots, those are independent. go to auctions, buy Subaru's and resell them. that doesn't take anything but looking up your state reg's. There are numerous independent subaru specialty shops. i've been to them in Georgia, Maryland, and West Virginia. they aren't affiliated with Subaru at all. Though they can create relationships with local Subaru dealers to help supply inventory and such. An actual dealership is a completely different undertaking and requires far more. Shop, supplies, inventory, lawyers, finances....it's a completely different ball game and a much larger enterprise. You'd need to decide what you want to do. One you can start next week and doesn't cost much of anything. The other requires massive investments or leveraging of assets, as well as time, to get started. Quote Link to comment Share on other sites More sharing options...
mellow65 Posted December 29, 2008 Share Posted December 29, 2008 as a small dealer that likes to specialize in subarus, to start a new car dealership you better have some major $$$$$$$$$$$$ in the used world, it's much more fun, well i think, always new (to me) cars coming and going. me actually selling something i think is a great car, not just telling someone that. and most the people get a kick out of my rally car when they come look at something that i have. first things first, get your dealers license. it differs in each states so i can't help you there. then the rest is learning. i could bore you with all the details but if it's really something you are interested in doing, you need to check with your state on what the process is. Quote Link to comment Share on other sites More sharing options...
Rooster2 Posted December 29, 2008 Share Posted December 29, 2008 Ok so maybe im crazy. This has always been something i have dreamed about doing. I love subarus i have a 04 sti, a 99rs that im trying to sell(http://www.ultimatesubaru.org/forum/showthread.php?t=94132 sorry for the plug) so that i could buy my wife a new forester. I have had a subaru almost my entire driving career, and as soon as i got any money save up i would blow it on another suby. So i guess love is what makes a subaru. I have always thought about start a suby dealship, used or new don't care. I am just not sure where to go suby has zero info on there page, and its hard to find anything about starting a used car lot. :banana:well thats it, I hope im not the only carzy fool on here.:banana: If you are serious about becoming a dealer, then you need to learn the business from the inside out. Take a job at a Subie dealership as a mechanic or salesman, or whatever you would want to get hired as. Without understanding the biz from the inside, it would be extremely difficult to be successful. Quote Link to comment Share on other sites More sharing options...
xt61991 Posted December 29, 2008 Author Share Posted December 29, 2008 Hey thanks for the responces. There is very few used subaru dealers in my area. I was more interested in a new dealer. Not that i have the money or could even find it. I was just wonder if soa runs them the same as like ford or chevy. How does the new dealership concept work anyways?? Hey mellow sounds like you do a used lot now, and the points you made are one of the reason i would like to start one. even if i was i wouldn't know how to start, any good b ooks you suggest? Quote Link to comment Share on other sites More sharing options...
xt61991 Posted December 29, 2008 Author Share Posted December 29, 2008 rooster2 that is also something i thought about but how would i go about a sales getting a sales job, i am a electricain now. So my resume has nothin reguard sales.. not sure if i would ever make the jump but the info is defently intersting me. Quote Link to comment Share on other sites More sharing options...
johnceggleston Posted December 29, 2008 Share Posted December 29, 2008 rooster2 that is also something i thought about but how would i go about a sales getting a sales job, i am a electricain now. So my resume has nothin reguard sales.. not sure if i would ever make the jump but the info is defently intersting me. anyone can make the leap to a sales job, especilly a straight commision sales job, which most car sales are. but you may starve or lose your house before you're good at it. there are any number of books on selling and cold calling (the art of finding some one to sell to). most center on LISTENING to the 'would be' buyer and offering a solution to his problem or his need. you also need to make the features of your product, a benefit to him. and lastly you need to figure out what his objection is (what's keeping him from buying from you today) and eliminate it. sometimes it's the littlest of things. example: i was trying to get a homeower to sign a contract for a $10k bathroom remodel and i couldn't get her to. i finally ask why she didn't want me to do the job and she told me she didn't like the toilet ($120) i had included in the package. i told her she could have any toilet she wanted, and she signed. also, it's easy to know and talk about selling, it is altogether different to be good at it. by the way, every job interview i ever went on was a sales presentation by both sides. the employer was selling me on how great the job was, and i was selling him on how great i would be at the job. Quote Link to comment Share on other sites More sharing options...
idosubaru Posted December 29, 2008 Share Posted December 29, 2008 your first question is financial in nature. you've already mentioned that's a likely road bump. get a rough estimate of start up costs and time to become profittable (with appropriate safety factors in place) and see if that's a financial risk you're comfortable with and can make happen. your states DMV or MVA (whatever you motor vehicle place it called for your state) will have the information required for getting licensed. look at that, it's actually not that hard. you're starting the right way to succeed (rather than just doing it), and need to move quickly from here. start networking and finding people that know the business, like you're doing here. nice to find someone local that you can really interact with and respect. choose wisely, most people don't! i'd go straight for a dealer owner or as high up as i can possibly meet with. get a broad overview from them. i go to church with the owner of a Ford dealership, so i'd personally start there. start having lunch and connecting with people. personal relationships are key. what kind of discounts are USMB members going to get!?!?!?! Quote Link to comment Share on other sites More sharing options...
subaru360 Posted December 29, 2008 Share Posted December 29, 2008 Unless you have several million or the credit to borrow that much forget about opening a new car dealership. Kind of blunt, but that is the way it is. A typical small used dealership selling just subies is a whole different story, an average person can do that for an average investment. Rent or buy properly zoned land with a building. Look up your states requirements for a used car lot, follow them to the letter, apply for a license, get some insurance and a few cars to sell and you are in business. I have been working towards having my own used car lot selling subies for a few years now. I'm learning what to do and not to do to make money and making connections, finding sources for cars and parts. I have a decent system in place on a small scale now that's working well. Yes if I go big time I will give a USMB discount If you are really interested in it buy a car that needs some work and cleanup, get it ready and sell it. See if you like doing it. Most states have a limit of how many cars one person can buy or sell in a year without a dealer license, stay clear of that number and you'll be fine. Quote Link to comment Share on other sites More sharing options...
mellow65 Posted December 29, 2008 Share Posted December 29, 2008 Hey thanks for the responces. There is very few used subaru dealers in my area. I was more interested in a new dealer. Not that i have the money or could even find it. I was just wonder if soa runs them the same as like ford or chevy. How does the new dealership concept work anyways?? Hey mellow sounds like you do a used lot now, and the points you made are one of the reason i would like to start one. even if i was i wouldn't know how to start, any good b ooks you suggest? man books aren't even going to start to show you the insides of how to sell cars. to be frankly honest, to make a lot of money you have to be a slime ball. i don't make tons of money but i sell stuff that i believe in. i have been working with my dad for the past 5 years and i still don't even know half of this crap. and that man could sell ice to an eskimo. if i was to try to start out, picking up a sales job at a dealership will give you some inside info on the workings of a dealership. and just a warning, be ready to be totally disgusted on the way they operate. the crap they will do to make a sale is down right immoral, not illegal, but i couldn't do it like they do it with a clear conscious. or try just selling some on the side. in oregon you are allowed 5 cars a year to sell as a privet party before DMV starts asking to many questions. if your married you would get 10 then. that is more then enough to get your feet wet and see if it's something you think you could deal with. the down side to that is not having a dealers license and not being able to go to dealer auctions. but there are still deals to be had even in the privet sector. another cool thing about dealers licenses, is you can then do mainly like my dad does and be an auto broker. he sells new cars to people but doesn't work for any dealership. brand new off the show room floor for a lot less then if you were to walk in and try to fight for a good deal. and save tons of time too. there is a book out there that i would love to read but haven't yet, it's called something like "how to make a lot of money selling cars to women" the really F ed thing is written by a woman. good luck, it's a fun world to be in, but some people just can't cut it. and if you can't you will be taken out real quick. Quote Link to comment Share on other sites More sharing options...
xt61991 Posted December 30, 2008 Author Share Posted December 30, 2008 well i wasen't as serious as how i may came off of. I did look into my state, 5 cars a year privatly. For the lot the state wants a showroom for 5 cars with there does open, a sign, and a office big enough to stor files. And WOW MILLIONS to start a new lot, thats kinda of supriseing. thanks again guys Quote Link to comment Share on other sites More sharing options...
subaru360 Posted December 30, 2008 Share Posted December 30, 2008 well i wasen't as serious as how i may came off of. I did look into my state, 5 cars a year privatly. For the lot the state wants a showroom for 5 cars with there does open, a sign, and a office big enough to stor files. And WOW MILLIONS to start a new lot, thats kinda of supriseing. thanks again guys Aren't you in PA? The display area of your outdoor lot size needs to be for 5 cars, you don't need an indoor showroom for 5 cars for a used lot. Maybe for a new you do, but that's wayyyy outta my league. You can always invest in my lot if I ever get one. Figure 100 cars on the lot at 30K a car that's 3 mill there. Then a mill for a decent property at least, another mill for equipment costs employee salaries, then add in franchise fees, insurance, I could go on. I was a new car dealer employee for almost 15 years and I saw and leaned a lot. Quote Link to comment Share on other sites More sharing options...
mellow65 Posted December 30, 2008 Share Posted December 30, 2008 Aren't you in PA? The display area of your outdoor lot size needs to be for 5 cars, you don't need an indoor showroom for 5 cars for a used lot. Maybe for a new you do, but that's wayyyy outta my league. You can always invest in my lot if I ever get one. Figure 100 cars on the lot at 30K a car that's 3 mill there. Then a mill for a decent property at least, another mill for equipment costs employee salaries, then add in franchise fees, insurance, I could go on. I was a new car dealer employee for almost 15 years and I saw and leaned a lot. and then you can watch all your millions go down the drain because of slow car sales. i got a buddy of mine working in service at a honda dealer. not only did they just do this massive remodel, but now the guys that owned it has backed out and now his investors are sitting there with a honda dealership that is loosing money hand over fist. rumorvill is the investors are giving it another few months before they pull the plug on the place. then everyones out of a job. in my opinion not the time to own a new dealership. the best way is to own your inventory clean and clear, no loans. if you have to sit on something for a little extra longer it's not going to kill you. but that's how i work, no more money out of my pocket then i have, but that's probably why i don't make tons of money. hell i still have a real job outside of selling cars. Quote Link to comment Share on other sites More sharing options...
Sparkystours59 Posted December 30, 2008 Share Posted December 30, 2008 what? are you serious? with the economy the way it is now ???? did you forget to put the pipe down at xmas or what............. Quote Link to comment Share on other sites More sharing options...
xt61991 Posted December 30, 2008 Author Share Posted December 30, 2008 lol Quote Link to comment Share on other sites More sharing options...
crash321 Posted December 30, 2008 Share Posted December 30, 2008 in my opinion not the time to own a new dealership. the best way is to own your inventory clean and clear, no loans. if you have to sit on something for a little extra longer it's not going to kill you. . The Dave Ramsey Way to do business! I like it! Quote Link to comment Share on other sites More sharing options...
Recommended Posts
Join the conversation
You can post now and register later. If you have an account, sign in now to post with your account.