How to start a Used Car Business without any Investment | SWOT Analysis | Profit

 How to Start a Used Car Business without any Investment


Used car business


Used car/ Pre-owned Car business is an Evergreen business because Day by Day Automobile industry is growing. Even we can start this business with Zero Investment. If you have an idea to start a business or you are into the used car business surely I will tell you this article is very helpful for you and you are in the right place.


    In this article, we are going to see how we start a Used Car business without Any Investment, What is used car business, the Pros & Cons and SWOT Analysis, and more.



    What is Used Car Business


    What is Used Car Buinsess

    I think you can understand the image, Used car business means we connect the buyer and seller to sell and buy cars, actually, this is one type of used car business for this type of used car business we don't need any investment to start a business we need only contacts to start. for this deal, we get a commission, that is our revenue. that will be around 2% to 5% depends upon the car's value and customer, we cant get a commission from both buyer and seller.


    this is one type of used car business you buy a car from the customer with the full payment and then sell the car to someone. In this scenario what is your profit? you can't get a commission from the seller or buyer because you made the purchase. so in this case, you want to add your profit so you want to work out the following things.

    • Interest for capital which is you invest
    • Mechanical cost if you did mechanical work
    • Any expense you made for car
    • and Finally Profit

    you want investment to do like this.



    Used Car Business Market

    Used car Business is an Evergreen business Automobile industry is a growing business New Car Sales in World, 

    China is the top country in car sales in the world. As of 2020, car sales in China were 20.2 million units, next to china's top 5 countries are(in million units)




    So every year New car sales are growing in the world So obviously customer for used car business also growing



    Ways to Buy and Sell Car 

    In 2021 we have so many ways to buy and sell the car I will tell some of the ways

    • Contacts
    • Local Area Group
    • Social Media Group
    • New car Showroom
    • Classified sites
    • Newspaper Advertisement
    • and more

    My favorite way and workable way in the above list to procure a car is New Car Showroom because 80% of customer buy the new car with the Exchange of their Old car so we can simply go and make a contract with nearby new car showroom Manager to take all the exchange car.


    And one of the best ways to sell a car is Contacts and group make your own customer base that will helps you lot to sell a car, for that you want to fulfill the customer needs, for the beginners use Classified sites to make a customer base.



    Revenue/ Profit in Used Car Business

    Commission

    You get a commission from the buyer and seller for buy and sell the car as we mentioned above the first type of used car business primary revenue is Commission. for example, if you make a deal for 5lac rupees your commission somewhat around 10k to 15k this is one day work. Sounds Good right.


    Profit 

    In the above-mentioned second type of used car business, you include the profit at the marginal cost of the car, Used car dealers actually fix the profit ratio as 10% on the car buying price.


    Additional Revenue

    • Accessories
    • Auto finance Payout (if buyer need finance to buy a car you can make an arrangement and get a payout for that)
    • Car Polish
    • and more... 


    SWOT Analysis

    Strengths
    Weaknesses
  • Growing Industry
  • Zero Investment
  • Corporate Entry
  • Opportunities
    Threats
  • Large target market
  • Flexible working hours
  • loss of trust
  • Competition


  • Conclusion

    The used car business is an evergreen business so if you have any idea to start do it. but one thing before starting a business we want consider some things do all the checks and get into business one of my favorite and interesting business.

    If you have any doubt or Question feel free to text me



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