3 Effective Tips To Kick-Start A Used Car Business
- BY Jaspreet Kaur
Feature Writer, BusinessEx
- Nov 26,2018
- 11 Mins Read
The automotive industry has tremendously risen over the years. Owning a Car, which was being considered a privileged luxury item, is now easily accessible with the emergence of the EMI system. As a result, every upper middle class seeks to buy a car today. According to IBEF (Indian Brand Equity Foundation), “Rise in middle-class income and young population may result in strong growth.” Further, “India is expected to become a leader in shared mobility by 2030, providing opportunities for electric and autonomous vehicles. Shifting focus towards electric cars can also provide opportunities in the sector.”
Thus, it can be deduced that the growth opportunities in the automotive industry are manifold. Similarly, the market for the used car has also initiated at the beginning of the millennium. In the lapse of years, the used car market is still deemed a novel sector, thus it renders ample opportunities to outsiders to explore the market and become a niche player.
Today, buyers exhibit an interest in purchasing a new car as well as a used car. According to Ken Research report, “The domestic used car market has been constantly evolving and even though most of the major players have made their entry in the used car segment of the industry, many carmakers are still to realize the potential of this market. Once they do, the used car market will expand further.” “The used car sales in India at 3.22 million vehicles which are approximately ~times the sales in the new-car segment as recorded in FY’2013...”
The report is exemplary to inform the growth opportunities available in the used car market. If one wants to commence a used car business, then it is a hassle-free process. All one requires is to adhere to fool-proof strategies and handy suggestions.
- Try Your Hand In The Used Car Market
Before commencing the used car business, it is essential to determine one’s interest as well as the ability to handle the business. For that, one should engage in the automotive industry by selling the used cars as one’s part-time business. Once the individual gains hands-on experience in the sector, then he would be certain if he can commit to the sector.
- Ascertain A Storage Space For Cars
A spacious storage or parking space is one of the essentials for a used car business. Primarily, buyers visit the car dealer to purchase a used car and without checking the car model, the deal cannot be made. Thus, considering this problem, it is essential to display a varied variety of used cars in the showroom. If the showroom does not have enough space to occupy all cars, then the car dealer should acquire or lease an enlarged space wherein visitors can come and have a proper look at the car.
- Create A Motor Trade Insurance
Motor trade insurance is a component that every buyer seeks while purchasing a used car. The insurance policy is primarily an insured amount that is received when a car gets damaged. Thus, the car dealer needs to form motor trade insurance for the used cars. To create the motor trade insurance, the car dealer needs to meet an insurance broker, who would facilitate in making an apt policy. While sharing details with the insurance brokers, the car dealer should not play smartly, and deliberately miss out or omit details.
This kind of trickery later can result in the loss of the car dealer because if the omission in the policy is found out, then the car dealer would be accountable to pay out the entire insurance amount. So, it is important to share concise as well as precise details with the insurance broker.
Follow the above-mentioned suggestions and start the used car business effortlessly.
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