Sports cars never go out of fashion and it is the dream of many motorists to own their own sports cars. In addition to an exhilarating experience behind the wheel and stylish good looks, sports cars are considered to be status symbols so they will always appeal to those that want to be seen as a success in their life. This is something that any intelligent entrepreneur will be interested in because there is the potential for success with something that is so desirable and always in-demand.
Starting a Dealership
Starting a car dealership selling used cars could therefore be an intelligent business idea for any entrepreneur that has a passion for automobiles. Buying and selling sports cars could be a lucrative business if you know how to succeed in this industry and it can also be rewarding selling people an item that will improve their life in so many ways.
Buy legitimate vehicles Goes without saying that your dealership needs to sell good cars that are in great condition and without mechanical issues. To safeguard each investment use a car hpi check to investigate previous vehicle history like theft, mileage checks and outstanding finance alerts. Hpi services have become an essential part of running a dealership as modern car crime rises across the United Kingdom.
Popular Sports Cars
Of course, in order to succeed in this industry, you will need to make sure that you have the most popular sports cars for sale. There are all kinds of popular and desirable sports cars in the UK at the moment, including a few entry-level sports cars which will be more affordable right through luxury, high-end sports cars which will come with a hefty price-tag. Here are a few of the most popular sports cars in the UK right now:
- Porsche Cayman
- BMW M2 Competition
- Toyota GR Supra
- Mazda MX-5
- Toyota GT86
- BMW Z4 M40i
- Alpine A110
- McLaren 570S
- Nissan GT-R
- Ford Mustang
Tips for Starting a Sports Car Dealership
Of course, it is not simply a case of buying these sports cars and then opening the doors to your sports car dealership. This is a unique type of business to run and you will need to carry out thorough market research and create a detailed business plan to guide you in the early stages. Additionally, securing funding will be key for buying inventory to start with so you will need to raise startup capital whether this is from bootstrapping, angel investors, crowdfunding or venture capitalists. Obviously, you need to have a suitable space for the business which will allow you to showcase your stock but it must also be somewhere that is accessible. Having a proper dealership management system in place will ensure you can manage your business on the go also
Being Aware of Depreciation
It is also important to note that entrepreneurs need to be aware of depreciation with this type of business. As explained by ALA, “depreciation within the car market is very high. Up to 77% of the value of a brand-new vehicle can vanish over a 3-year period, while some used cars can depreciate by as much as 20% within the first six months”. This means that GAP insurance is smart as this will provide financial protection if the vehicle is written off by covering the shortfall between an insurance payout (the current market value) and the amount originally paid.
Sports cars are always in demand which means that this can be a smart business idea for any entrepreneur with a passion for cars and this guide should help anyone interested in this business idea.