business
THE A-Z OF BUSINESS How to start your second-hand car sales business.
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t is interesting to see that there is little choice in Gibraltar to buy second-hand cars. In an ever-growing demand for motorcars, there is some room for opportunity for those that wish to enter such motoring business. There are however certain rules to follow, and regulations to comply with, as well as the usual procedures that one would go through in any new business. Business plan, site rental, sales hut, finance and the long usual etcetera that goes with every business. The first step is to find out on your own what the market is like. What are people buying in Gibraltar as far as motorcars are concerned? Is there really a market? There is a market, certainly, but how active is it? Are we going to specialise in a market of everyday utility motorcars? Or are we going to do something entirely different and sell sports cars? Or Possibly small vans? This last idea may be worth analysing.
thoroughly. Some long hours will have to be spent looking into what could it be like if we decided to go ahead with this or that particular type of car we want to sell. The following step would be to test the market. You do not have to buy big stocks to see some results. Buy one or two cars that you know people could be keen on buying and make sure you buy at the right price. And the right car. Study carefully its service history and have the vehicles inspected by a seasoned mechanic. Make sure the car is clean and never had a major accident. Insist on having this in writing in the bill of sale or contract. Your first deals are of paramount importance. This motor sales business is very much a reputation business and you want to get it straight from day one. Honesty and integrity are quintessential in any business, and probably a lot moreso if you
What are people buying? Is there really a market?
Once the idea has been decided, the next step is to study that specific market carefully and 22
are dealing in second-hand cars. There are some very bad dealers out there‌ and some honest ones as well. Make sure you become a member of the honest group. If you do, word of mouth will help you tremendously and your business will be on the way to success.
Honesty and integrity are quintessential in any business.
An acquaintance of mine, who we shall call Miguel, started off by selling the occasional German car in Marbella and Estepona, up to five years old and up to 60,000 km. He would have two or three at a time. Now he has stocks of several dozen cars and his reputation is spotless. He never took a client for a bad dishonest drive. He issues a guarantee when a sale is concluded, which is normally covered by an insurance policy he takes and pays for personally. His business is doing well. This is a case to study and copy. The market in Gibraltar may possibly be smaller. It is not a huge one, but it is certainly a market and a very healthy one as well, so it’s probably worth a good try. GIBRALTAR MAGAZINE MARCH 2020