Business Baron

Used Car Dealership

Used Car Dealership: Forecourt, finance and part-exchange. A forecourt is bought on floorplan finance, and every day a car sits there it costs interest and…

Forecourt, finance and part-exchange. Turn stock over before the interest eats it.

A forecourt is bought on floorplan finance, and every day a car sits there it costs interest and loses value, so days to sell matters more than the price on the screen. Under the VAT margin scheme you pay VAT only on the profit, which is the difference between a viable deal and a loss. Selling finance is regulated by the FCA and is where much of the profit sits, so how commission is disclosed, and what you did about it in the past, is a real liability.

Setup costs
£60,000 to £300,000
Competition
Very high
Category
Transport & Logistics

Related businesses