Starting YOUR OWN Car Dealership

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🎬 Rob's Editor (Jeff):

[McCartneyville]

I am a 3rd Gen independent dealer. This break-down is spot on Robbie! Can I call you Robbie? Some of the best advice my Dad passed down to me: "Son, stay small and keep it all."

[fcdeville]

Great video!! I open my used car lot in 1987 I was 24, myself and father were partners back then. We bought our main building on contract with a $700 a month payment for 120 months, instantly added an addition for a 3 car shop, paved the lot, signage etc. Back then all you needed was a phone, calculator and a pen with a few forms. we both came in with 15K each for inventory, three years later bought the building next for more space in cash Never had a floorplan. Now next month Im going to be 60 and its time to start thinking of selling and moving on. When someone who is interested in buying my place asks what is it going to take to buy and run the place, they go into shock. With 2 million for the property and another million for inventory--payroll, computers updating the buildings (grandfathered in) they melt like an ice cream cone on the 4th of July. Anyone can sell a few cars a year, but do it hundreds or sometime a thousand of times a year and do it for 36 years the number of gets very small.

[Ruffianthystoic]

As a car dealer in FL I stay away from floor plan. I buy all my vehicles with my own money. 14 years strong . 💯

[joshuavinson]

The key take away is that there is a lot more involved than most people realize. A lot of people jump headlong into it, and wind up in serious dead.
Appreciate the video.

[TheMrSauers]

Also finding inventory, I got lucky that I sold cars for 10+ years in WNC and know a lot of managers at franchise stores and some high end independent dealers. I’ve not bought a single car from an auction and I’m proud of that. If it wasn’t for buying cars wholesale and knowing the business I wouldn’t have had the success we have. Still can’t wait to have that chat with you.

[garyclark]

I work in the insurance business, mostly with commercial truck dealers, and businesses who lease out utility trucks. What Rabbit says is true. A good place to check out are municipal vehicle auctions and utility auctions. I once bought a Ford truck that belonged to a phone company.

[Travesty_INC]

Rob, please keep these kind of videos coming. Hearing how about business REALLY is done and goes is priceless info.

[Barton_Motors_Ltd]

One of your best videos ever uncle rob.
I’m a younger fella up in Canada who has his dealers license but no space of mine own yet. Our government and economy sure makes it near impossible/unaffordable to own space up here. Its becoming hard to keep faith. Hoping to open up my own lot someday. Cheers 👍

[urgetodrive]

Great chat. Couple of additional points from my own experience. 
(1) DMV fees go way beyond the dealer course that Rob mentioned up front. There is a laundry list of fees and ticky-tacky things you have to pay for before even hoping to get your license issued. It all adds up and before you know it you'll be into the DMV (and related expenditures) for at least $500. Also, none of this happens very fast - remember, you're dealing with government bureaucrats who don't give a crap and aren't known for efficient service. Count on it all taking two months - minimum - before you get signed off and have a license on the way.
(2) City / local municipality taxes. You need a business license where your dealership is going to operate...and you better triple check that selling cars is allowed by the zoning laws wherever your dealership is located. If it's not and you need a variance...get ready to write some large checks (could be thousands). If it's zoned for auto sales then you might only need to pay $1-200 for business license (yearly) but then they'll come at you for other stuff like hazardous waste fees (Fats, Oils, Grease tax aka FOG fee).
(3) Insurance is the biggest PITA (as Rob pointed out) ... you'll find it pretty easy to get a garage liability policy but if you want comp/coll/liability on your ability to actually drive the cars....whooboy, have fun even finding a company who offers those coverages for a new dealer.

[Rascofresco]

Everyone wants to become a car dealer until they see the mountain of effort and dedication required

[arnoldrodriguez]

My family built, owned and operated 5 convenience stores for about 25 years in the 80s, 90s and early 2000s. The construction cost alone before a drop of gas or can of beer was sold was reaching 7 figures in the 1990s. Twenty years ago we walked away from operating them and became landlords. Each month I receive an email from 7-Eleven telling me the rent has been deposited in my bank account, no more stress. Start out small, watch your pennies and always always be attentive and at your business. Absent owners won’t be owners for very long.

[everydayfun]

rob you really explained the nessisary key points of starting a car dealership busniess always start small and manage the dealership throughly i thought maybe a big dealership made sense but after you said that a small car dealership is also profitable man now i really wanna start my own car dealership and i look forward to meet you one day sir!

[MrBestest]

You went into great detail describing the process. I've always worked for dealerships. Was a general manager of a used car dealership for quite a few years. I just moved to Florida and I'm working at a Buick GMC Cadillac dealership now and selling 15-20 cars a month myself. Really thinking about taking the next step and opening up my own dealership.

[alimuheyaddin]

I have a dealership for 9 years.
I went to big fast until I had 3 locations after that I noticed the best way is to keep it small after that I went back to one location and keep the overhead the lowest is possible.
Used car business so hard and need a lot of cash & knowledge .

[donthewellguy]

You sir are the reason that I am now “Don The Well Guy”…
I made the jump and my boss gave me a small percentage and every year I gain a little more and a little more.
I should fully own this company I work for within the next 8 years…
But listening to you, made me save my money, do my research, and make the jump… Just I was offered a deal that I couldn’t refuse…
Sometimes you just have to make the jump.

Can’t wait to see your new shop opening coming up…
I’m really hoping to be able to make it to meet you.

[flatlandAutoSales]

Thanks Rob, just starting the process here in Kansas. I happen to own my building, warehouse. The bond wasn't bad, they require 50k here, luckily I have good credit. The biggest hurdle you mentioned was the insurance, $8k a year hurts. I love starting businesses having absolutely no idea what Im doing, makes it exciting hahaha

[dsicher]

Great info Rabbit. Appreciate you taking the time on this.

[blairhofmann]

Not me I run a shop and I hate dealing with used dealers. Except for Rob...he the best!

[melvinjames]

Good video pretty informative. I Dona trucking company and I thought about some cars trucks but I believe you’re right about the commercial vehicles when people come to buy a specialized unit they’re serious.

[SquidRider]

EST. 2020, this is spot on. It's hard. Good luck to all the future Rabbits! I love it but it's hard.