Starting a buy here, pay here dealership can be a lucrative business, since your target market will be consumers who expect to pay higher interest rates. Determine your capital for buying the initial inventory. To attract customers, you will need to have a wide selection of vehicles from which to choose.
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The mortgage mess and the deepening economic malaise may dampen sales for franchised dealers, but not necessarily for buy here, pay here stores. This is a recession-proof business, notes Brent Carmichael, a consultant with NCM Associates BHPH 20 Group programs. Yes, the mortgage crunch has pushed some of the BHPH buyers’ credit scores down, but not by much.
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A business plan is a written document that describes your business. It covers objectives, strategies, sales, marketing and financial forecasts. A business plan helps you to: clarify your business.
Most buy-here, pay-here start-ups will require from 250K to 750K to grow to that “turnover” point. Why the disparity? Sales volume, cash down, cost of car, etc.,etc, etc. Overhead of the operation is obviously a significant factor as well and there is a broad range when it comes to dealers' cost of operating. There are certainly plenty of dealers who choose a business plan that requires.
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