Automobile business is very lucrative attracting huge profit in the open market. There are many areas a businessman should consider before entering the automobile business.
The business has the service end, spare parts business, retail and the actual buying and selling of vehicles.
Whatever section you consider there are certain things that should be on ground before starting your Automobile business. Let us look at a few automobile related business ventures you can consider.
Most automobile sales are carried out by an auto broker. The auto broker is the go between the buyer and the owner of the car.
The auto broker is either an independent broker or works for a car dealership. The primary function is to influence a deal or purchase.
Auto brokers make moderate commission and are reasonably rewarded. The formality of payment depends on the agreement of the automobile owner and broker.
Brokers generally work on commissions on sale but a few hedges for more funds from both buyer and seller. Auto brokers are generally attached to an automobile sales outlet or a private individual.
To become an auto broker you need to have lots of knowledge of cars, be persuasive and have a measure of integrity. Auto brokers work on commission bases and generally carry out there duties offline.
However, in recent times auto brokers have carried there trade to online commerce. They achieve this by using either paid or free classified to inform members of the public of vehicles for sale.
Auto broker business does not involve much capital involvement because the broker is selling the vehicle without investing a dime.
Sometimes people in the area that know an auto mobile broker will give him there car to sell. Another method the broker uses is scout for cars already put up for sales in his locality liaisons with the owner and finds a buyer.
Automobile flipping is a good business because the business person makes quick turn around. The business format is simple the business man buys a used car does minor refurbishing and resells the car.
If the businessman has a deep knowledge of what people want he will make huge profit. The bottom line is to buy low and sell slightly higher.
The less financial involvement in the buying and repairs the higher the profit margin. The businessman needs to scout around for bargain cars to flips.
Automobile spare parts business is almost larger than the sales automobile business. Cars go through lots of wear and tear and they slowly lose value after purchase. The vehicles engine and other parts like tires and break pads need constant change.
Spare parts have different grades from new to fairly-used to re-purpose. A spare parts dealer could sell either new or used spare parts or both.
Re-purposed spare parts are found in articulated markets and auto junk heaps. To start this business you need a shop decide on the brand of cars and parts you are going to sell. You need to make your business either a wholesale spare parts business or a retail outfit.
Spare parts are sourced via importation or through manufacturing and fabricating companies in the country. You also buy your parts from major players in the industry.
To succeed you need to concentrate on a few models of vehicles and specific parts.
Vulcanizing business in certain countries is good business. The business is very simple and requires moderate training. To vulcanize a tire you use basically three elements, the air pump, jack and spanner to remove the tire and sealants
You can use pressure machines to speedily tire changes or manual strength. Once the tire is repaired and replaced you gauge the air pressure and it’s done.
To do this business you need a public location near a busy street with lots of vehicular movement. Vulcanizing business is just like selling air while making nice profit.
Automated Car wash business
Automated car wash business will put food on your table. You need an outlet and highly efficient machinery. The automation reduces the number of staff you would have employed.
Car wash business is lucrative whatever model you choose. You will earn daily income for your services including add-on like cleaning upholstery and engine oil checks.
Automobile sales store
Businessmen that have the financial might could consider selling vehicles. The business is capital intensive and remunerations are according to sales.
If you want to make quick money automobile sales outlet is not for you. Although auto merchants manage a few sales a month they are far between.
Automobile sales outlets is a good business but also a patient business.
To open an automobile sales outlet you need to source either used or new cars. The number of cars in your show room depends on your budget.
To succeed only stock trending automobile that people like. You don’t gain anything by stocking unpopular brands.
To start the business study the mid-range cars that are popular in your locality. Then stock only these classes of cars for a better chance at regular sales.
Auto Refurbishing and Sales
Buying an old car refurbishing it then selling the car is quite profitable. The business format works once your financial involvement in the refurbishing project is strictly controlled.
To much expenditure in refurbishing an old or used car will impact negatively on you profit margin. Buy only popular brands check the engine and other mechanism including panel beating costs and spraying. Before you start refurbishing a used car for sale check the cost benefit, profit potential and loss.
Automobile leasing creates regular income for the car owner. Leasing is good business if you have a paying customer.
You can lease your car, truck or bus depending on the customers needs. Leasing is time specific and should not exceed the agreed time of use.
Things that impact on the charges are distance, duration and type of vehicle leased. A lease agreement might include a dedicated driver or self driven.
The business person interested in automobile leasing should secure his vehicle by introducing tracker technology. Do you know that construction companies also lease trucks, excavators and other heavy machinery?
Taxi business is a nice business model depending on the structure. Taxi drivers make regular income because transportation is very important.
The business man could open a taxi pool with many vehicles or drive a lone car. The financial investment and vision usually dictates his business model.
Taxi business is done either full time or part time bases.
Call cabs are also taxis but with a slight difference. Call cabs only operate when a client calls the cab company for reservations.
The client requests the services of a cab for certain duration and pays accordingly. Most call cab businesses operate call, carry and drop system.
They are pricier than regular taxis because they go the extra mile of picking the client up at their location.
To start this business buy a few vehicles, market you business and have a website and secretary. The secretary is to answer calls by clients and control the movement of the cabbies.
If you have a vehicle you can turn it into a mobile advertisement. What you need to do is approach any company that you fancy and offer you car as a mobile advert.
The company if interested pays you to advertise their business on your vehicle. What you do is turn the sides, and hood into a work of art.
There are things to consider before trying this business such as local government regulations on advertisement. You can’t get rich doing this business but you get paid.
Mechanics are the engine that keeps cars on our roads. You can study to become an automobile mechanic open a shop and make good money.
Auto mechanics earn nice wages especially if they know the profession thoroughly. To start this business get training, open a store and get proper equipment.
Your work ethics will speak for you and get you new customers.
Automobile body work and spraying business
Automobile body work and spraying business is a money spinner. At some point in time vehicles need body work and a new coat of paint.
To start this business you need to learn panel beating or hire a panel beater. You also need car sprays, colors and other equipment to make the job easier.
A dust free workshop is needed for the spray jobs including air filter masks. The major investment is in the shop and equipment.
Automobile body workshops get a steady flow of customers year round.
Vehicle upholstery business
The vehicle upholstery business specializes only in car upholstery. Many cars or trucks need a face lift especially when the seats are torn or worn.
Upholstery business is not capital intensive and has a flexible format. You can work from any location that you like without hindrance.
However, it’s better to situate your business close to automobile body workshops. The upholstery are usually sown, stitched or pinned with specialized equipment.
The major investments in vehicle upholstery business are equipment and labor costs.
Anti theft auto business
A vehicle is stolen every minute in India so building and anti theft automobile business will make you money. The business is based on advanced technology to track vehicular movement.
The anti theft device is placed in a secret location in the vehicle. If the vehicle is stolen the security company can deactivate the vehicles engine and pin point its location.
The recipients of the device pay an initial sum for the device, and installation of the device. The vehicle owner also pays monthly or yearly service charge.
If you have lots of vehicles in you data base you make lots of money.
What you need to run the business is a computer, and internet connectivity. Other things are the device, a software program and clients.
You can get lots of customers from Banks, insurance houses, hotels and even transportation companies. Car anti theft business is a good business venture.
Sell car tires
Tires go through lots of rigors and the recommended period to change tires is every six months. Transporters change their tires more regularly than private owners.
Tire business is simple and straight forward, buy in bulk and sell retail. All you need is a shop in a good location and lots of tires.
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