bankruptcy luxury purchases
How do used car dealers purchase so many cars? [privately owned dealers]?
aside from the large dealers, im speaking in terms of like 20 cars on a used dealer lot- how can a dealer afford to purchase 20 cars? then does he just file bankruptcy if he can’t afford them, how does this work?
if there are any websites explainig.. please inform me.
thanks!!!! any help is appreciated.
I am thinking about opening a used luxury car dealership in tampa, florida.
At one time, I had 35+ cars for sale, each parked on the curb within a few miles of where I lived. (Mostly lower end)
Aside from a few instances when I was first starting out, I bought and paid for all my cars with cash and did not have any debt.
Most auctions have some type of 3rd party financing, called “floor planning” but it is usually fairly expensive and not a good deal.
I would strongly discourage you from opening a luxury car dealership without knowledge of the above.
I have seen people inherent a bunch of money, open a car lot with high rent and expensive employees and burn through it in less than a year. There is no substitute for experience.
Most car dealers do not carry debt. Those that do are at a competitive disadvantage.
My advice would be to prove to yourself that you can regularly buy & sell cars on your own, before you go about taking on debt and expensive overhead.
