You didn't mention the top reason. That is honesty. Most dealers in my area try to rip people off by hiding defects or doing shady things. When you are honest in this business, you will make less in the short term but in the long run you will have loyal customers who will only buy cars from you and will recommend you to their family and friends
Hands down I gotta give it 2 u, u do post the realities of the car dealership business. I put your videos in a Playlist listen 2 u like talk radio. Much appreciated
I always wanted a used car dealership, however even people i knew who had dealers licenses seemed very secretive on how to obtain one even the process of getting a license they never wanted to share. Your content gave me more information and insight on making that dream come true than years of being around guys who buy cars from auctions and sell them retail
Excellent video, I have owned an small dealership in Indiana (was a mechanic for 14 years before that) since 2013 and everything in this video is spot on. I would actually recommend for people to stay away from floor plans, they don’t only take a huge chunk out of your profits but they also treat you like you are stealing from them every time they come by to do an audit, there was a time I forgot to pay off a 2k dollars car with next gear and they were ready to repo everything I had. Similar to what you said I started with high end cars thinking that I was going to make a killing, man was I wrong lol Now my thing is affordable cheap cars and either cash or bank loan, great video.
I agree absolutely on always learning in the world we live in. The digital landscape changes daily. I do not think most dealers are utilizing GMB as they should. My 2 Cents.
Bonus tip #6: many dealers are cheap af! I've come across many that refuse to do the simplest of repairs. What frustrates me most is that they don't even know something is broken untill after the car is sold, then they beg me to fix it fast cause the customer is taking delivery in two hours. Me: you've had this car on your lot for a month and now you realize the radio doesn't work and you're missing the right rear wheel? Normally I'd charge $300 ,but for you I'll fix it for free. Dealer: aww man why so much? Can you do it free and give me $50 and buff out that crushed fender while you're at it?
Another great video Lucky! I completely agree that we are all Experts in a field of endeavor. I heard once that it takes 10,000 hours of study ti become an expert. My question is how Manu times are you able to become and expert in all areas. Stick to what you are good at.
Would love if you would make a video on how to find a commercial property or how not overpay on commercial property, how to calculate what revenue to expect from lot size and what risks are there. Great content tho.
I got an small dealership I have been through a lot of the stuff you are talking about, my biggest issue right now though is finding banks that are not pushing hundreds of dollars in fees to costumers, I tried with Westlake and their fees are stupid, specially when we are the ones doing everything.
Love the hire a professional comment! To add, if your accountant is just inputting numbers and spitting out what you owe at the end of the year, you’ve got a dud. There is so much value in strategic planning for everything from tax deductions to cash flow to capital structure review (responsible leverage). Nice video!
Nothing pisses me off that some auction buyer taking advantage of a huge line of credit and buying every car at the auction . Problem is you see him taking pics of a bar code and the idiot inflating the price tag.
California recently changed from quarterly sales tax payments, to monthly payments, and most recently some newer smaller dealers will pay sales tax as soon as they transfer the car at the dmv. I am sure this is due to the problems that Lucky is talking about. If you get too far behind they can just pull money out of your business bank account without warning + your bank will charge you an extra fee.
Lucky trust me man just because of the good informations you give , alot of people bring food to the table in home its extremely helpfull... Straight ticket to heaven ✅✅
I sell in a city where almost everyone wants a Honda Accord. Nothing else. I’m thinking I should try somewhere else or joint the many other dealers that sell mostly accords.
Video was a little confusing calling sales tax the tax you pay to the IRS. I refer sales tax as the tax paid to the state on each retail sale and income tax from business profit is paid to the IRS. Either way they both have to be paid or they will be coming for you.
NEVER buy Nissan with CVT transmission or Ford Focuses that have the duel clutch transmission. You are taking a massive gamble if that car has 80k plus mileage.
what would you advise between ONLINE BIDDING AND PHYSICAL BIDDING AT THE AUCTION for new small auto dealership, with no prior knowledge of how car dealerships are run.
@@LuckyLopez777 Thanks Boss, I find your channel very informative and helpful. I am from Nigeria and recently moved here. The whole ball game is totally different how we do it back home. I really want to get it right and not be counted amongst the SOO as u usually say. God Bless Boss.
I have a small dealership here in Northern Nevada, I carry about 5-6 cars at a time. I currently have 4 subprime lenders signed up. Do you have a list of subprime lender that work with small dealers in Nevada? Thanks
Yeah he is correct prices are super high in california automotive life could you do a video on what small car dealership can do to compete with auction high prices how can we stay in business we can't compete with bigger dealers because their pockets are bigger what can we do a video explaining what we can do is much needed
Love the content, thank you :) I commented before about starting with 5 or 6 cash cars on Turo and Hyrecar. Up to 7 now. I'll be at 10 by the year end. Is financing really worth it to shift to a floor plan for a rental business, or should I stick to my all cash model in the long run? I can see financing working better for high end cars, but everything I have is valued $5k to $10k
There is estimating software but it’s very expensive plus you need an experienced estimator to figure out how much collision damage is because it takes a lot to determine what’s wrong with the car and what needs to be fixed or replaced or changed
Time sensitive, I’m trying to buy a Nissan Rogue. (AWD, moonroof) There was one 2018 19k miles for 24.5k, but 29k out the door with taxes and fees, I passed on it and it was sold the next day! Now I have a 2019 21k miles I’m debating on that’s 23k, 26k with taxes and fees. Is that a good price? To me the prices are dropping which is good but not sure if this is already a good deal or if I should wait on it more
Hello how can I get to those classes just open a small car lot want to learn this trade and be successful want to learn about financing and lenders please help need a mentoring
We have been in business for 9 years and have done mostly BHPH for the last half of that. Trying to get set up with some prime lenders/banks now, and not having any luck. We were set up with CUDL years ago, but they now require documented 3 million a year in sales, and we aren't that big. The local banks and credit unions have no appetite for independent dealers. Any suggestions for a prime lending source? I can't even get one let alone five...
Wisdom is a circle. What you receive, you must give back.
And always be willing to receive. The day you stop learning is the day you die
You didn't mention the top reason. That is honesty. Most dealers in my area try to rip people off by hiding defects or doing shady things. When you are honest in this business, you will make less in the short term but in the long run you will have loyal customers who will only buy cars from you and will recommend you to their family and friends
Hands down I gotta give it 2 u, u do post the realities of the car dealership business. I put your videos in a Playlist listen 2 u like talk radio. Much appreciated
Thank you for watching and the comments
I always wanted a used car dealership, however even people i knew who had dealers licenses seemed very secretive on how to obtain one even the process of getting a license they never wanted to share. Your content gave me more information and insight on making that dream come true than years of being around guys who buy cars from auctions and sell them retail
Also marketing and lead gen. Get a couple of birdogs if it’s allowed in your state.
$$$$
Excellent video, I have owned an small dealership in Indiana (was a mechanic for 14 years before that) since 2013 and everything in this video is spot on.
I would actually recommend for people to stay away from floor plans, they don’t only take a huge chunk out of your profits but they also treat you like you are stealing from them every time they come by to do an audit, there was a time I forgot to pay off a 2k dollars car with next gear and they were ready to repo everything I had.
Similar to what you said I started with high end cars thinking that I was going to make a killing, man was I wrong lol
Now my thing is affordable cheap cars and either cash or bank loan, great video.
Floorplans do you put a lot of companies out of business unfortunately
I agree absolutely on always learning in the world we live in. The digital landscape changes daily.
I do not think most dealers are utilizing GMB as they should. My 2 Cents.
Facts!!!
Bonus tip #6: many dealers are cheap af!
I've come across many that refuse to do the simplest of repairs. What frustrates me most is that they don't even know something is broken untill after the car is sold, then they beg me to fix it fast cause the customer is taking delivery in two hours.
Me: you've had this car on your lot for a month and now you realize the radio doesn't work and you're missing the right rear wheel? Normally I'd charge $300 ,but for you I'll fix it for free.
Dealer: aww man why so much? Can you do it free and give me $50 and buff out that crushed fender while you're at it?
only 90% of dealers are Cheap AF lol. I was going to drive arond and do dealership reviews but I didnt want to get sued lol
Another great video Lucky! I completely agree that we are all Experts in a field of endeavor. I heard once that it takes 10,000 hours of study ti become an expert. My question is how
Manu times are you able to become and expert in all areas. Stick to what you are good at.
So true Bob 😁👍
Great video I’m a fairly new dealer in the Birmingham and shoals area. Definitely great tips! I appreciate all that content.
thanks. How are you liking the Car biz so far
Thanks Lucky! we have learned a lot from you and going to open my Dealership in Tx. Wish me the best of luck with your best tips.
Congrats 🎊
Would love if you would make a video on how to find a commercial property or how not overpay on commercial property, how to calculate what revenue to expect from lot size and what risks are there. Great content tho.
Will do 😁👍 thanks for the video idea
I got an small dealership I have been through a lot of the stuff you are talking about, my biggest issue right now though is finding banks that are not pushing hundreds of dollars in fees to costumers, I tried with Westlake and their fees are stupid, specially when we are the ones doing everything.
try CAC
Another great video with great information 👍
Glad you enjoyed it
I screwed up so bad…sales tax money and floor plans killed me
A slow death dollar by dollar lol
Lucky you are one awesome teacher and am glad to fellow your lead in this car business
thanks :)
Love the hire a professional comment! To add, if your accountant is just inputting numbers and spitting out what you owe at the end of the year, you’ve got a dud. There is so much value in strategic planning for everything from tax deductions to cash flow to capital structure review (responsible leverage).
Nice video!
So True!!! Thanks for sharing
Thanks again Lucky. Your content continues to help this new dealer. 🤘
My pleasure!
Great content Lucky! You always open my eyes to a new ways to do business! I really appreciate it!!
I appreciate that!
Nothing pisses me off that some auction buyer taking advantage of a huge line of credit and buying every car at the auction . Problem is you see him taking pics of a bar code and the idiot inflating the price tag.
Facts!!!!
California recently changed from quarterly sales tax payments, to monthly payments, and most recently some newer smaller dealers will pay sales tax as soon as they transfer the car at the dmv. I am sure this is due to the problems that Lucky is talking about. If you get too far behind they can just pull money out of your business bank account without warning + your bank will charge you an extra fee.
OG follower since the 1st video 🥰 before toast was even a thing lmao
Yessssss
Lucky trust me man just because of the good informations you give , alot of people bring food to the table in home its extremely helpfull... Straight ticket to heaven ✅✅
Thanks Tony :)
Love your videos. 🤘
I appreciate that!
yeah right Lucky, I can't learn anything. I know everything!
Teach me :)
I sell in a city where almost everyone wants a Honda Accord. Nothing else. I’m thinking I should try somewhere else or joint the many other dealers that sell mostly accords.
Video was a little confusing calling sales tax the tax you pay to the IRS. I refer sales tax as the tax paid to the state on each retail sale and income tax from business profit is paid to the IRS. Either way they both have to be paid or they will be coming for you.
I Know. as a dealer we pay 4 types of Taxes lol
@@LuckyLopez777 Yep a dealer is basically a tax collector for the state. That's why they frown on car flippers curb stoning.
@@modified15r Correction, not just tax collector - UNPAID tax collector!
Buy Here, Pay Here Financing has to be ridiculously profitable.
It’s pretty crazy I’ve seen people make insane amounts of money off of it
NEVER buy Nissan with CVT transmission or Ford Focuses that have the duel clutch transmission. You are taking a massive gamble if that car has 80k plus mileage.
Facts!!!! but. you can get a brands new Trans from Nissan for 1500. ford 2800 lol
Scotty Kilmer waves off those deals LOL
Great video thanks
Glad you enjoyed it
what would you advise between ONLINE BIDDING AND PHYSICAL BIDDING AT THE AUCTION for new small auto dealership, with no prior knowledge of how car dealerships are run.
always go in person for the first 2-3 yrs
@@LuckyLopez777 Thanks Boss, I find your channel very informative and helpful. I am from Nigeria and recently moved here. The whole ball game is totally different how we do it back home. I really want to get it right and not be counted amongst the SOO as u usually say. God Bless Boss.
Wow, great content. Not gonna lie, I'm scared now 😳
take it step by step and you will be good. and watch my chanel for more videos ;)
@@LuckyLopez777 thank you. I needed to hear that!!
I have a small dealership here in Northern Nevada, I carry about 5-6 cars at a time. I currently have 4 subprime lenders signed up. Do you have a list of subprime lender that work with small dealers in Nevada? Thanks
Westlake. PAC Gold Acceptance. DIve finance. CA finace Nicolas finance Veros lobel gateway. CAC Quality acceptance
Lucky can you do a video on the AFC mobility program for rental cars
I cant. if they dont like the vidoes they will cut of my Clients and students lol
Rates suck
First ! I get a consultation call lol
First!!!
Great videos 👏👏👏👏👏👏👏
Glad you like them!
Thanks
No problem :)
Price of cars in auctions still expensive
what market are you in?
@@LuckyLopez777 I’m in Bay Area California
Yeah he is correct prices are super high in california automotive life could you do a video on what small car dealership can do to compete with auction high prices how can we stay in business we can't compete with bigger dealers because their pockets are bigger what can we do a video explaining what we can do is much needed
Love the content, thank you :) I commented before about starting with 5 or 6 cash cars on Turo and Hyrecar. Up to 7 now. I'll be at 10 by the year end. Is financing really worth it to shift to a floor plan for a rental business, or should I stick to my all cash model in the long run? I can see financing working better for high end cars, but everything I have is valued $5k to $10k
Nice congrats :)
CAn you reach out to me, looking to transition to a starter fleet of 5 cars
@@leshelangbeen7256 sure! I responded on your other post
Please do you know any app online that shows you how much a car collision damaged should cost to fix
There is estimating software but it’s very expensive plus you need an experienced estimator to figure out how much collision damage is because it takes a lot to determine what’s wrong with the car and what needs to be fixed or replaced or changed
How much would you say it cost to start a car rental business. Starting with just two cars?
3500-5000
How do you partner with any banks?
Call them and send them deals
Time sensitive, I’m trying to buy a Nissan Rogue. (AWD, moonroof) There was one 2018 19k miles for 24.5k, but 29k out the door with taxes and fees, I passed on it and it was sold the next day! Now I have a 2019 21k miles I’m debating on that’s 23k, 26k with taxes and fees. Is that a good price?
To me the prices are dropping which is good but not sure if this is already a good deal or if I should wait on it more
I would wait till mid Oct
what type of engine does optimus prime have?
what kind?
Hello how can I get to those classes just open a small car lot want to learn this trade and be successful want to learn about financing and lenders please help need a mentoring
Check out our site. Www.Automotivelife.com
Lucky, what percentage of profit should you try to make per car ? Obviously this will vary but what is the optimal goal? 30% ?
I can put a fixed number or % some models are based off Gross other Volume I did a Volume model
We have been in business for 9 years and have done mostly BHPH for the last half of that. Trying to get set up with some prime lenders/banks now, and not having any luck. We were set up with CUDL years ago, but they now require documented 3 million a year in sales, and we aren't that big. The local banks and credit unions have no appetite for independent dealers. Any suggestions for a prime lending source? I can't even get one let alone five...
If you talk to your Cudl rep they should wave 2 requirements for you prime are hard to get if you dont have cudl or other pime banks
@@LuckyLopez777 Thanks! We'll give it a try
What kind of dealerships are you taking about. Independents? They ain’t dealerships
Independents
What’s your Facebook page?
look in video description
What is your email? I have a few questions.
Email is always in video description. Lucky @ Automotivelife.com
Liked, subbed, and notifications on. Love ya content. Look for an email from me.
thanks :)
check your email please
I checked nothing there
@@LuckyLopez777 I just resent it