Last updated: Mar 04, 2023, 7:35 PM IST
The demand for used cars in India is on the rise in India due to rising prices of new cars and higher interest rates charged by banks on car loans. Used cars are more popular with consumers than new ones. Moreover, in India, the majority of people who want to buy a car cannot afford the ex-showroom price and many of them opt for used cars.
This article covers every aspect of opening a used car showroom, from conducting market research to managing the business.
The demand for used cars in India has been growing in recent years. According to reports, the Indian used car industry was valued at $24.24 billion in 2019 and is expected to grow at a CAGR of 15.12% between 2020 and 2025. So, before launching your business, research the market and customers. This will give you a better idea about used car demand and the sales potential of your targeted segment.
Create a blueprint
Deciding on the business goal is the first step in developing a business strategy, and when opening a used car showroom, this goal should be your top priority. It brings you as many recommendations and brand recognition as possible. When developing your business plan, consider the location where you plan to open your used car showroom, as well as the relevant facts, figures and industry indices.
If you have enough capital on hand, you are good to go. If necessary, you can get bank loans to finance your used car showroom. The initial costs that may be incurred include:
· The monthly office or lot fee
· Legal costs associated with setting up the business, such as ownership and no-sell agreements
Other items such as furniture, desks, laptops, telephones,
· Costs of marketing and promotion, both online and offline
· Consultancy costs for the accountant’s office supplies
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