CAR DEALERSHIP MANAGEMENT
Car dealership refers to buying and selling of new or used cars in showrooms either directly or through salesmen employed specifically for the same.
The following are the points to be considered before you start a car dealership business
1.Before you begin your business, decide if you want to deal with new or used cars, If you choose to start a new car dealership, it’s important to keep in mind that the initial investment is substantially higher than a used car dealership. Starting a used car dealership, on the other hand, doesn’t require such a large initial investment, but the earning potential is lower.
2.The next step would be to formulate a business plan, A solid dealership should begin with the vehicles themselves; are you going to sell one brand or multiples? If selling both new and used cars is a possibility, it’s also important to include this in the business plan. Other business plan stipulations include determining business equipment costs, researching manufacturer car costs versus used car prices, calculating employee salaries, lease and sales agreement costs, and planning your advertising budget.
3.The third step is obtaining the license for your dealership.If you want a full-fledged dealership, then you need a dealer’s license that permits you to sell an unlimited number of vehicles a year. A dealer’s license is also necessary if you want your sales activities to fall within the Consumer Rights and Safety laws. All car dealerships require comprehensive insurance coverage whether they deal with used cars, new cars, or both. Typical car dealership insurance coverage includes general liability, lot coverage, and comprehensive plans that cover everything from property damage to inventory loss.
4.Getting the right salesman is the key to success of your dealership business. From the condition of the vehicle to following through specific promises during the selling process, letting your customers know exactly what they’re getting is the key to success. Other salesman traits include not being too pushy during a sale, knowing how to handle the negotiation stage properly, and knowing when to give potential buyers some breathing room.
5.Choosing the right location for your business also plays a major role. The larger the population, the more sales you’ll make. Then there’s the location’s visibility to take into consideration. If your lot is on an obscure road or set back from the roadside, you’ll likely draw fewer customers.
6.Managing your inventory is also very important. As a car dealership owner, the last situation you want to find yourself in is not having plenty of options for your customers. Making a sale is great, but a dwindling inventory is not. Because of this, you’ll have to play inventory chess regularly and predict when you’ll need to restock and what you’ll need to restock with.
7.Having the right software for your business is the final step. The right software can help in minimizing a lot of admin work and shift focus on sales rather than having to do tedious tasks.
If you want to grow your automation business, Moiboo software is the solution.
Agreements can be saved on the cloud. They can be created on the tab and signed digitally. Saves space and time.
Invoices can be sent through whatsapp / email/sms to customers. Great way to save paper
Some jobs require approval from customers, this can be obtained over SMS
4. PROFIT PER CAR
Calculate the cost of every car sold and profits made real time. Helps you quote the right prices and reduces losses.
Transactions can be done in any currency as multi-currency facility is available.
6. VEHICLE MANAGEMENT
Set SMS reminders for due dates of Insurance, Maintenance etc of every car. Along with all statutory details
Make informed purchases based on what is selling. Helps you reduce non-moving stock purchase.
8. DOCUMENT MANAGEMENT
Attach pictures, Insurance and other documents to every invoice on the cloud Never miss a document again
9. MOBILE APP
Be updated of the work being done on your mobile app.Helps you control your business from anywhere.
10. COMMISSION CALCULATION
Calculate commissions for mechanics automatically with pre-defined details. Save time at the month-end
Create payment vouchers for driver payments and expenses. See Profitability of Business.
12. FLOOR CREDIT MANAGEMENT
Manage Floor credit transactions and Credit company accounts in the software. You can save time spent on manual excel workings.
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