Profits in Car Dealership Business

Profit and loss are a part of every business. But every business hopes for more and more of profit in their lifetime. Profit is the backbone of every business activity. No business can survive without profits. Also profits come to those who bears the risk says Alex Korchmar. Car dealership business just like any other business comes with risk. You have to be very cautious in your dealing approach. There should be utmost transparency in dealing. You have to be very sure that your contact off dealing conveys all the material and immaterial terms to avoid confusion later.





The car dealership requires a lot of money says Aleksandr Korchmar. If you are somebody who doesn’t have a supportive or huge financial standing then make sure you avail good amount of credit, check your financial soundness before entering into this vast business opportunity. The profits in this business depend upon the prevailing conditions of the market. Car dealership requires a very big infrastructure. Most of the owners in this business earn a net profit of 1 to 2 percent which is pretty pitiful. One has to employ 9 to 10 persons working on different parts of the transaction. Profits of a car dealer depends on all vehicles. Luxury cars fetches more profit than other cars. Try indulging in the dealing of the luxury car as it will fetch you more profits and it will be a kick start to your business. If a dealer clears it’s inventory within a month, it can see a tidy profit. The car dealers in USA earn handsome profit as there are not any issues of demand or financing etc.

Car dealership is all depends upon financial working of a person. It is  a very challenging business as far as it’s profit is concerned. Rental of godown , workshop and  inventory cost and many other factors are responsible for the costing Profit is earned from sale of cars, accessories, commission through financing and insurance companies. Also, after sale servicing fetches revenue. 


An average dealer earns around Rs16000/ to Rs30000/ on sale of every unit based on the model of a car Also, incentives offered by different car companies add to the profits. Handling charges of each car ranges from Rs5000/_ to Rs7000/_. You can cut the cost by selling the cars at a faster pase for this you require a good customer base that trusts your dealings. A good customer base has to be earned with your transparent dealing and also by providing quality goods. This is how you expand your business of dealership and maximize your profit in this industry says Alex Korchmar.

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