Talk About Cars|A Discussion About Cars, Maintenance and Car Buying
Sep
27
Bull Market asked:
This will be operated in California, I am planning to sell 1-2 cars at a time. How much startup Capital is recommended that I have inorder to be in this business?
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This will be operated in California, I am planning to sell 1-2 cars at a time. How much startup Capital is recommended that I have inorder to be in this business?
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Comments
xx_satanic_mechanic_xx on 28 September, 2009 at 5:10 pm #
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If you are selling to the public, you need a dealer license, not just a wholesale license.
in CA, you need a place of business, sign, room to display at least 2 cars at a time, business license, dealer surety bond, dealer auto insurance (NOT cheap). They run a credit and background check.
If you have a place of business, then you need your utilities as well.
Before 2009 began, I was looking at projected costs of business in the $70k area for the year. That did not include inventory. In CA. it will be about the same, but the bond might be a little cheaper.
I wouldnt start with less than $20k liquid. Even that is a shoestring budget.