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Starting Your Car Auctions Empire

In the realm of automotive innovation, launching a car auctions business stands as a testament to one's visionary prowess and entrepreneurial spirit. It's not merely about selling cars; it's about creating an electrifying platform where enthusiasts and collectors converge to celebrate automotive marvels. To embark on this journey, one must first cultivate a deep understanding of the market dynamics and consumer desires. The cornerstone of success lies in crafting an invigorating environment that transforms every transaction into an exhilarating event. Leveraging advanced digital tools to streamline operations and enhance the bidding experience becomes paramount. Enthrall your audience by curating an impeccable selection of vehicles, augmented with comprehensive histories and transparent evaluations.

white car crossing body of water

The Legal Labyrinth

Imagine exploring uncharted territories where every step is a discovery and every challenge, a call to innovate. That's akin to starting a car auctions business. The first obstacle you're likely to encounter is navigating through the complex web of legal requirements. It's not just about obtaining a business license; you must also understand specific regulations around vehicle sales and auctions in your region. This testing ground separates the visionaries who see beyond the hurdles from those deterred by them.

Finding Your Fleet

Now, let's ponder on sourcing vehicles for your auctions. It's somewhat like planning a mission to Mars; you need the right vehicles that can survive the journey and appeal to your audience. Establishing relationships with car dealerships, private sellers, and even banks and government agencies for repossessed or surplus vehicles becomes crucial. These partnerships are your lifeline, ensuring a steady flow of cars to keep your auctions vibrant and appealing. It's an intricate dance of negotiation and mutual benefit.

red sports car

Technological Integration

In today's world, technology is as fundamental as oxygen. For car auctions, integrating advanced software for inventory management, online bidding, and live stream auctions can catapult your business into new dimensions. It's about creating an ecosystem where participants, regardless of their physical location, feel they're right there with you. This digital transformation demands not only financial investment but also a forward-thinking mindset. Yet, the payoff in terms of reach and efficiency is astronomical.

Building Brand Trust

In any venture as ambitious as colonizing distant planets or as grounded as starting a car auctions business, trust is the foundation. Initially, convincing sellers to consign their prized possessions and buyers to partake in your auctions can be daunting. Like crafting rockets that promise safe return from space missions, your business must promise reliability and integrity. It involves transparent practices, exceptional customer service, and consistent delivery on promises. Over time, this trust becomes your brand's gravity, attracting more stakeholders into your orbit.

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Marketing Mastery

Diving into the realm of marketing your car auctions business requires creativity akin to conceptualizing a spaceship that can break through Earth's orbit. Traditional advertising methods might get you off the ground, but digital marketing strategies will propel you into orbit. Targeted social media campaigns, engaging content creation, SEO optimizations--these are tools in your arsenal to reach a global audience. The aim is not just visibility but creating an experience that resonates with your audience on an emotional level. After all, every bid is not just a transaction but part of someone's dream.

Boost campaigns with 250+ editable templates. Save, reuse, and wield design tools for business growth.

Customer Experience Transformation

Imagine if stepping into a spaceship was as mundane as boarding a bus; space travel wouldn't have the allure it does. Similarly, transforming the customer experience at your car auctions from merely transactional to genuinely exhilarating can set you apart in the cosmos of competitors. This means meticulous attention to every touchpoint - from intuitive website navigation to thrilling auction presentations and impeccable post-sale service. Each element should reflect innovation and drive customer satisfaction sky-high. Remember, in today's world, experiences are as valuable as the cars on auction.

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Nurturing Partnerships

In this journey towards establishing a successful car auction business as we would strive towards Mars colonization--it's all about fostering lasting partnerships. From securing sources for your vehicle inventory to collaborating with tech companies for software solutions--it's these alliances that fuel growth and innovation. Think of it as assembling a team of astronauts; each member brings unique skills vital for mission success--nurturing these relationships paves the way for mutual successes and breakthroughs in unexplored territories.

Leveraging Design Tools

In wrapping up our exploration without actually concluding it--consider the role of compelling visuals in captivating an audience--a lesson learned from designing spaceships no less! Utilizing design platforms like Desygner becomes instrumental in crafting promotional materials that not only grab attention but also communicate the essence of your brand effectively across various media channels--making it easier than ever before to launch your vision into reality while keeping aesthetics at heart.

## Starting Your Car Auctions Business: The Gateway to SuccessIn the vast and competitive world of car auctions, the inception phase holds immense power, akin to the initial thrust propelling a rocket into space. Starting correctly is not just advisable; it's imperative. It lays down the foundational stones upon which a business can erect a towering structure of success, innovation, and customer satisfaction.### The Art of First StepsEmbarking on the journey with a clear blueprint in mind transforms complexities into streamlined processes. A well-charted beginning ensures that every aspect of the business, from procurement to sales strategy, aligns with the overarching vision. It's about setting a course that not only anticipates growth but also scalability and adaptability. Imagine launching a vehicle with precision engineering and cutting-edge technology - that's what a meticulously planned start offers your car auctions business.### Unleashing PotentialA thoughtful initiation unlocks untapped potential. It fosters an environment where creative solutions flourish, driving the business towards uncharted territories of innovation. Such an approach not only distinguishes your venture in a crowded market but also builds a resilient brand capable of weathering economic fluctuations and evolving consumer preferences.### Building RelationshipsStarting on the right note is instrumental in forging lasting relationships with clients and partners. It sets a precedent of reliability, trustworthiness, and excellence. Customers gravitate towards businesses that demonstrate commitment from day one, ensuring loyalty that transcends mere transactions. Similarly, solid initial strategies attract partners who share your vision and enthusiasm for revolutionizing the car auctions landscape.### Financial ForesightA well-planned startup is synonymous with financial prudence. By identifying key investment areas and potential financial pitfalls at an early stage, businesses can navigate through the fiscal challenges that many startups face. This foresight enables efficient capital allocation, boosting profitability and ensuring sustainable growth.### ConclusionIn essence, how you start your car auctions business can spell the difference between mere survival and thriving success. A robust beginning paves the way for operational efficiency, innovative breakthroughs, enduring customer relationships, and financial health. It's about casting a stone across the water to create many ripples - each ripple signifying milestones achieved through strategic foresight, meticulous planning, and unwavering determination. Embrace the significance of starting right, and watch as your business transforms into a beacon of excellence in the car auctions arena.

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Sealing the Deal on Your Car Auctions Venture

Embarking on a car auctions business journey requires not just passion for automobiles but also a strategic approach to navigate the market. It's akin to engineering a spacecraft; precision, innovation, and foresight are paramount. As you steer towards the launch of your venture, remember that every detail matters, from curating an exceptional inventory to crafting an unforgettable customer experience.

Digital tools and platforms offer unparalleled advantages in today's market. Just as designing a spaceship relies on cutting-edge technology, so does building your brand's presence. Utilize social media, construct a user-friendly website, and harness the power of digital marketing to fuel your business's growth trajectory towards success.

Networking and collaboration can significantly amplify your reach. Think of it as forming your own coalition of the willing; dealerships, automotive enthusiasts, and collectors alike can provide the thrust needed to propel your business forward. Engaging with these communities opens up a universe of opportunities, facilitating both acquisition of remarkable vehicles and access to prospective buyers.

Lastly, remember that innovation is not a one-time effort but a continuous journey. Stay abreast of industry trends and be ready to adapt. Your ability to innovate will determine how high and far your car auctions business will soar.

  • Develop a comprehensive business plan
  • Secure necessary licenses and permits
  • Cultivate relationships with car dealers and collectors
  • Create an engaging online presence
  • Leverage social media for marketing
  • Offer impeccable customer service
  • Continuously scout for unique vehicles
  • Innovate with tools like Desygner for branding materials

To encapsulate, launching a car auctions business is much like orchestrating a mission to the stars--demanding yet profoundly rewarding. Equip yourself with knowledge, embrace technology like Desygner for your promotional needs, and most importantly, fuel your journey with relentless innovation. Sign up at Desygner today and ignite the engines of success.

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Auto Auction Service Business Plan and SWOT Analysis

Auto Auction Service Business Plan, Marketing Plan, How To Guide, and Funding Directory

The Auto Auction Service Business Plan and Business Development toolkit features 18 different documents that you can use for capital raising or general business planning purposes. Our product line also features comprehensive information regarding to how to start an Auto Auction Service business. All business planning packages come with easy-to-use instructions so that you can reduce the time needed to create a professional business plan and presentation.

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Auto auction companies are always able to generate income from managing the ongoing purchase and sale of vehicles on behalf of third parties. These businesses play an important part in the automotive industry given that they allow third parties to easily divest inventories of vehicles that they no longer want war are looking to sell in bulk. Also, many auto auction companies maintain strong relationships with area municipal policing agencies as well as state-based police agencies that have vehicles that have been confiscated due to criminal activity. In many instances, auto auctions are able to remain highly profitable in any economic climate through the sales of confiscated property. Additionally, many individuals who have cards that they need to sell will turn auto auctions in order to quickly divest these inventories. As it relates to being an automotive focused business, auto auction companies are able to generate extremely high gross margins from their services given that they operate on a commission basis. Usually, these businesses charge a fee equal to 10% to 15% of the sales price per auction. The demand for auto auction services does not wane during times of economic recession.

Typically, the start of cost associated with the new auto auction business ranges anywhere from $50,000 to $150,000 depending on the facility that we used to carry out these auctions. One of the biggest expenses as it relates to these businesses is maintaining a secure warehouse where vehicles can be safely stored on a daily basis while they are being auctioned.

Given the highly predictable and highly economically secure nature of the revenues generated, most private investors as well as financial institutions have a keen interest in providing the necessary capital in order to develop this type of company. If an entrepreneur is looking to develop a new auto auction business and they’re going to be required to have a business plan. This document should feature a three year profit and loss statement, cash flow analysis, balance sheet, breakeven analysis, and business ratios page. As it relates to industry research, there are more than 2,000 companies that are actively engaged in the auction sale of vehicles. Each year these businesses generate an aggregate of $8 billion in commission fees. The industry employs 50,000 people, and in each of the last five years annual payrolls have exceeded $1 billion.

As part of the business plan, a full competitive analysis should also be developed. This includes taking a look at all other auto auction businesses within a 50 mile to 100 mile radius of the company’s plan location. A further examination should also include the number of automotive brokers that operate within the market given that these individuals are often able to operate in a similar capacity but on a one and on one basis. Beyond discussing the competition, a full demographic analysis of the individuals and companies that we purchasing vehicles from the auto auction should be included in as well. This includes discussing statistics relating to population size, population density, median household income, median family income, number of vehicle dealerships in the market, annual revenues, annual profits, and the number of vehicles that are bought and sold within the target market. This information is readily available through a number of both public and private information sources and it can be obtained relatively inexpensively.

Finally, within the auto auction business plan – there should be a significant discussion as to whether or not the business is going to actively trade for its own account in regards to acquiring vehicles and selling them to third parties. Most of these businesses strictly operate in auction capacity, they do have the significant ability to generate income through the acquisition of vehicles that can be sold for the company’s own account. This can be a highly lucrative aspect to operations. In fact, many auto auction businesses will begin to operate in this capacity once you have reached profitability.

An auto auction marketing plan needs to be developed as well. This is going to be one of the more complicated aspects of the business planning process given that a number of different marketing channels he to be used in order to generate continued interest in the vehicles that are being sold to the general public. This marketing plan should include a discussion regarding online advertising as well as traditional print advertising. As it relates to print advertisements, there should be a broad-based marketing campaign that focuses on when auto auctions are scheduled, vehicles that commonly come up during the course of auctions, starting bid pricing, and other information related to the location of the business. These advertisements can be distributed among circulars that focus on use automotive sales.

Of utmost importance to the auto auctions marketing campaign is the use of online sales channels. This includes maintaining a proprietary website that is listed among the major search engines including Google, Bing, and Yahoo. Of significant importance to the online marketing is the usage of social media. One of the ways that auto auctions can quickly be brought to profitability is by frequently showcasing vehicles that are for sale via FaceBook, twitter, Instagram, and related social media platforms. As the business develops a strong following via their social media pages – the costs related to marketing will decline substantially given that people will be able to see listings for vehicles are going to be auctioned within any given timeframe. A dedicated social media manager may be hired so that each vehicle that is going to be auctioned during the course of the week can be showcased to the general public via social media means. The return on investment by using social media platforms in order to showcase vehicle for sale can be phenomenal if it is carried out correctly. Usually, a dedicated social media manager that has an understanding of all major platforms has a salary of about $50,000 to $75,000 per year depending on the market. While this may contribute to a much higher payroll expense and marketing costs – the return on investment can be significant if it is carried out correctly.

Finally as it relates to marketing, many auto auctions will maintain strong relationships with area automotive dealers that are looking to acquire inventories on a wholesale basis. This may allow the company to more quickly turn over any inventory from third-party sellers that are simply looking to divest vehicles. Many automotive dealers also will send a representative to an auto auction to acquire vehicles that are underpriced and can be sold in a retail capacity.

An auto auction service SWOT analysis should be produced as well. As it relates to strengths, auto auction services are almost always able to remain profitable given the continued and ongoing demand for the buying and selling of vehicles. The gross margins generated are extremely high as this is commission driven income. The underlying operating costs associated with this type of business are considered to be moderate and the barriers to entry are moderate as well.

For weaknesses, given that there is now a significant amount of competition online among used-car sales platforms – many people have turned to using these entities in lieu of paying a large commission for having a vehicle auctioned. However, there are still a number of people that engage in auto auctions especially as it relates to police seizures. Additionally, many auto auctions will often provide for the sale of lots of vehicles in one setting. This is something that is not often done online.

For opportunities, these businesses can rapidly expand by increasing the size of their marketing campaign concurrently trading vehicles on their own account. Additionally, an entrepreneur that is starting a new auto auction service can establish additional locations outside of the initial companies target market radius. Banks and lenders look to provide these companies with working capital lines of credit that can be used for expansion purposes.

For threats, one of the primary threat is going to be the continued evolution of technology and how it applies to the sales of both new and used vehicles. Again, there is always going to be a significant demand among dealers, brokers, and other entities that deal in a number of vehicles that need to be bought and sold on a daily or weekly basis. As such, there is a very little risk to avian auto auction business in regards to how they will conduct their business moving forward.

In closing, and auto auction service can be a highly lucrative business investment provided that the owner has a strong understanding of new and used vehicle marketing coupled with strong ties to the community so that people that are actively engaged in this business will be come customers at the onset of operation. These businesses tend to do well in any economic climate, and they are considered recession proof for the most part.

How To Start an Auto Auction

How To Start an Auto Auction

When a dealer makes a decision to sell vehicles at the auction there consequently arises a question: how is this done? How to start auto bidding? The process of launching vehicles at auctions is practically the same on all auction platforms . So take a look at some of the general rules of how to place a vehicle on the auction and start selling your inventory there.

Register with the auction

First of all, before you place your car for sale register with the auction as a seller. Thoroughly think over all the details. Do not proceed at random because there are millions of experienced sellers at the platform and once you make a mistake customers will more likely buy vehicles from them than from you. So browse through similar cars, learn the prices, competition, customers’ preferences, read forums, blogs and only after that begin.

Choose the selling format

Initially, you should choose the auction format. It is a set of particular rules which stipulate a car sale. Depending on the platform select a selling format among such listings as Auction (where a vehicle will be bidden on), Fixed Price (a vehicle is set for sale at a fixed price without bidding), Only Offers (a format allowing buyers to offer their own prices for a vehicle), etc.

Create an effective headline

A good headline is one of the key factors contributing to any successful sale. Most buyers will find your vehicle through the auction search by using the filters or keywords. So your headline should contain the largest number of keywords. You can learn a lot of useful information by typing the keywords into a search bar and browsing your competitors’ cars. Always watch out that the grammar of your headline is correct, without any mistakes. Otherwise, customers won’t be able to find it. Some platforms provide special fee-paying services for keywords. They show your mini-banner to potential buyers if they entered in the search bar at least one of the keywords you paid for (the payment is made per click).

Provide a proper description

The description should be complete, brief, truthful, containing keywords and without errors. Include all the information about your car that you think is important and may be of interest to your potential buyers. It should not be long. Do not use large fonts, bright colors, only capital letters, and emotional «WOW!!!», «GREAT», etc.

Define the Starting bid

Enter the Starting bid or Start price. It is not such a simple task as it may seem. If you start your auction with a low price there is always a possibility that the final bid won’t suit you. If you make it too high buyers may not purchase your vehicle. Try to balance your starting price and make it optimal for the beginning. It’s not bad if you give the customers an opportunity to buy your vehicle by making offers.

Set the auction duration

Determine the duration of your auction. It can be 3, 5, 7, 10 days or more. Many dealers try to calculate the auction time so that its end falls on the weekends when the buyers’ activity is the highest. Do not forget about the time difference. The best time to launch a vehicle is when your target audience has a peak of the day.

Add good photos

The availability of high-quality photos is necessary for a successful sale. Do not post images from other websites. Use a camera and provide your own pictures. All files should be in .gif or .jpg format.

Pay attention to additional options

You should also use some of the additional options and blocks in the form. They bring a full picture of your car. Look through all of them and choose the required ones.

Now you know how to create an online auction for your inventory. The best of luck to you in your sales and deals! Autoxloo provides effective and working solutions for your most comfortable conversions and business strategies. Our technologies and products match any choosy needs and direct your sales to the way you need. Autoxloo auction and marketplace platforms will make your selling competitive and highly efficient.

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car auction business plan

How to Start an Automobile Auction

by Amara Collins

Published on 26 Sep 2017

Auctions are a great way to generate auto sales. Buyers get to purchase a vehicle at what the market dictates based upon competitive bidding. Sellers benefit from auctions because they do not have to pay for long term sales space, utilities, or employee sales wages. Common auctions in the U.S. take place on the Internet and at various locations across the nation.

Business Bank Account

Business License

Auction Location

Automobile Inventory

Preperation

Review your current finances and make sure you are able to commit at minimum $2500.00 to start up costs that go towards licensing, marketing, and automobile inventory.

Make time in your schedule for auction and business development. According to the U.S. Government, most businesses fail in the first two years due to lack of proper management. Set aside no less than 3 hours a day to organize your auto auction.

Research your local competition and understand the role this plays on your business. If there are multiple auto auctions in your area consider moving your location.

Write a business plan outlining your business name, mission statement, annual goals, and method of auction. Decide whether you prefer an online auction or physical location.

Open a business bank account in the name of your auto auction. Do not commingle personal funds with company funds. Pay for business costs and deposit payments with your business account.

Register your business name and obtain the necessary business licenses from your Secretary of State's office. Each state has different requirements for obtaining business licenses but expect to pay from $100.00 - $500.00.

Obtain a tax ID from the department of taxation in your state. Understand your state's tax laws on auto sales and auctions.

Find a suitable location to hold your auto auction and inventory. Large empty lots that allow recurring events work best. Having a lot that allows you to come back and reuse the space saves you the time on scouting new locations. Consult a commercial real estate professional in your area if you are not familiar with short term land leases before entering into a contract.

Buy inventory for your auto auction. Keep in mind when purchasing inventory you need to buy vehicles below market rate in order to turn a profit. Consider government auto auctions and auto wholesalers as inventory sources.

Market your automobile auction. Send out mailers and print advertisements to prospective buyers. E-mail friends, family, and associates to generate interest in your auto auction. Hold promotional events and give away free items.

Maintenance

Open your auction for bidding. If you have an online auction, track results and reply to e-mails quickly. Hire an auctioneer or act as the auctioneer yourself if you have a physical location. The auctioneer conducts the auction and processes the sale.

Follow up with auction winners and make sure the payment is processed and the vehicle is delivered.

Keep records of all auction results, finances, and client contact information.

Educate yourself thoroughly before starting an automobile auction as it requires a financial risk.

Don't bother with copy and paste.

Get this complete sample business plan as a free text document.

Used Auto Sales Business Plan

Start your own used auto sales business plan

Integrity Auto Sales

Executive summary executive summary is a brief introduction to your business plan. it describes your business, the problem that it solves, your target market, and financial highlights.">, auto sales & parts.

There is a need in Lane County for a large selection of quality used cars, and Integrity Auto Sales will sell these top-quality used vehicles at a competitive price. The owner and sales manager have over 30 years of combined experience in new and used auto sales. We will continue to develop our excellent working relationship with local dealers and auctions to bring the savings to the customer.

We will create a purchasing environment that caters to the customer’s needs. We are selling a professional service and an experience in car buying that will bring customers back again, as well as referring friends and family. We estimate an optimistic gross margin over the industry average. We will be successful because of the excellent team we have assembled and the drive and determination of the owners.

Almost everyone needs a car to get from point A to B. Many families have two or more cars. Due to the recent success of the new car market, there is a large inventory of used cars available for re-sale. New car sales have enjoyed the largest single month gain in October up 24%.

Competition

Used car dealers are notorious for unethical sales practices. Customers are inherently cautious and untrusting as a result. The more we can provide a high-quality sales experience, the more successful we will be. Our salesmen will provide a friendly and personal experience for the buyer. We will follow up and ensure customer satisfaction. We will rely on these customers for an excellent reference to other car buyers. This company will build an excellent working relationship with our suppliers and customers.

Integrity Auto Sales provides a unique car buying experience to the customers in the Willamette Valley. One that focuses on customer satisfaction first. We understand that vehicle purchasing is a necessary, but sometimes unpleasant experience. Our goal is to provide the customer with an enjoyable, honest service by satisfying individual customers practical transportation needs with a quality product.

We also believe it is important to have quality vehicles at a low cost, and will back each vehicle with a 30 day limited warranty. Our company will make a profit by generating sales. It will provide job satisfaction and fair compensation to its employees, and a fair return to its owners. Hard work and performance is rewarded through bonuses and commissions. Job satisfaction is very important for employees and owners, we will create a work environment that is enjoyable and profitable for all.

Expectations

  • Growth will be moderate to good, cash flows steady with several months of loss in the beginning
  • Marketing will remain below 10% of sales. 
  • The company will invest residual profits (10%) into financial markets and approximately 50% into company expansion for the first year.

Financial Highlights by Year

Financing needed.

We need $130,000 funding to start. That includes a $100,000 loan. Jonathan will invest $20,000 and Don will invest $10,000. 

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Almost everyone needs a car to get from point A to B. Many families have two or more cars. Due to the recent success of the new car market, there is a large inventory of used cars available for re-sale. New car sales have enjoyed the largest single month gain in October 2001, up 24%.

4.1 Market Segmentation

Our market segmentation will consist of four basic segments; students, retired, families, and singles.

Current Alternatives

Our closest, similar competitors are AA Auto Sales, Big Apple Car Sales, Frank’s Auto Place, Guaranty, R & L Motors, and Sierra Truck, all on Hwy 99 between Eugene and Junction City.

  • The primary competitors will be those in and around Junction City. Guaranty is a large, well-established dealer, with approximately 75% of the local market share. Guaranty has a large operation with a well-trained sales staff. Our sales manager is a former Guaranty sales manager, who understands the competition’s operations very well.
  • Frank’s Auto Place offers a limited selection, and appears to be unorganized. Frank’s does not offer any competitive marketing and primarily focuses on the $1-2,000 vehicle.

Our Advantages

Keys to success.

To succeed in this business we must:

  • Put together a team of experienced professionals.
  • Secure an excellent high-traffic location.
  • Establish a network of suppliers, in order to buy and sell products that are of the highest reliability and quality, at a competitive price.
  • Ensure customer satisfaction by encouraging the two most important values, honor and integrity.
  • Create high morale by rewarding employee success with monetary compensation.

Marketing & Sales

Marketing plan.

Our marketing strategy will focus on four segments. Those segments are described in the following subtopics. We will implement a strategy that treats customers as a community. This means our marketing resources will be centered around advertising both sales promotions (events) and personal sales (customer service, friendly atmosphere).

  • The marketing budget will not exceed $6,000 per year.
  • 100% customer satisfaction, measured through repeat customers, referrals and surveys.
  • To achieve a respectable profit margin within the first three-years.
  • To achieve a healthy net profit by year two.

Students  will include high school and college age students who need a safe and economical car. This group is concerned with price, flashy looks, and being cool. These drivers tend to be less educated and will buy on impulse paying more for less car. They will also buy cars more often than others, on average every two to three years.

The  retired  group will focus on practicality. Cost may be less important than quality and features. This group wants comfortable, nicely equipped vehicles at a reasonable price. They will want a vehicle that will last for years.

Families  will focus on safe, practical vehicles. Something that will last for years, can fetch groceries, carry the kids, and perform long trips. Many will be on a budget, and price may be a big factor. They will shop around and educate themselves on vehicles, shopping for a specific make or model.

The last group is the  singles . They are similar to the students in that they want flashly cool cars, but may be a working professional who can afford to pay more for a higher-quality vehicle.

Sales compensation is based on a percent of profits. We will invest adequate time and resources into training each member of the sales team and into good customer relations. Salesmen will be paid a portion of their salary based on commission. Good performance is rewarded with increased commission and bonuses. However integrity will not be sacrificed for sales. Customer satisfaction will continue to be a top priority. All potential sales will be attended to in a timely fashion and long-term salesperson-customer relationships will take precedence over sales closure.

Locations & Facilities

  • The company office is located at 12345 HWY 99, Junction City, OR 97666.
  • The office is approximately 1,000 square feet and has ample space for the first three years of growth.
  • The 20,000 square foot lot and building is leased from the principal owner.

Integrity Auto Sales sells top-quality used vehicles at a competitive price. Integrity buys pre-inspected vehicles wholesale from well known local car dealers, and auto auctions. Integrity continually maintains a diverse stock of vehicles, providing the widest selection for individual needs.

Vehicles are purchased weekly, to add to the current stock on hand. Each vehicle is thoroughly inspected by an ASE mechanic with over 25 years of experience. Only vehicles that pass this critical 26 point inspection are sold on-site.

Integrity Auto Sales sells all types of used vehicles, from sports cars to RVs. We cater to each customer individually, to satisfy their own practical needs.  We buy only the best used vehicles at or below wholesale in order to bring the savings to the customers. Each vehicle is thoroughly inspected by an ASE mechanic with over 25 years of experience. We also offer an auto finding service to customers. If we do not have the vehicle they want in stock, we will find one for them.

Milestones & Metrics

Milestones table, key metrics.

Our key metrics are: 

  • # of facebook posts and pageviews 
  • # of tweets and retweets
  • # of reps that meet and excel their quotas. 
  • cogs of our most popular cars
  • website page views and shares 
  • Follow our customers figure out their favorite cars and features 

Ownership & Structure

Integrity Auto Sales is a privately held corporation. It will be registered as a Subchapter S, with ownership 60%-Jonathan Dinsmore, 40%-Don Mazzioti.

Management Team

Integrity will start with four initial employees. The owner will manage over all operations and the sales manager will manage all buying and selling of inventory. A records clerk and lot attendant will also be hired initially.

Once the gross margin and cash flow will support it, we will hire an additional salesman and lot attendants (tentatively four to six months).

Personnel Table

Financial plan investor-ready personnel plan .">, key assumptions.

We will accept credit cards and trade-ins of any value. Credit cards will have a negative affect on cash flow in that we may not be paid for several days. Trade-ins will also impact cash flow in that they are an asset and have no real value until sold. We will have to limit the number of credit transactions, and only take in quality trades at a wholesale price to facilitate turning a quick profit. The personnel burden is very low because benefits are not paid to part-timers. And the short-term interest rate is extraordinarily low because of current market rates.

We also assume conservative earnings from selling loans and extended warranties will be made.

The other assumption is that current market conditions will remain for the next two to three years. Low rates will have a positive impact on sales and lending for the short term.

Our cash forecast is extremely unrealistic at the far end of the forecast. We leave it like that knowing that we will revise over time. We call it a cushion, and reassurance, not an accurate forecast. 

Revenue by Month

Expenses by month, net profit (or loss) by year, use of funds.

Almost 90% of start-up costs will go to assets. Start-up costs will be financed through a combination of owner’s investment, short-term loans (VA business loan), and long-term borrowing. The start-up chart shows the distribution of financing.

Other miscellaneous expenses include:

  • Legal fees for business establishment (ownership, and no sell agreement).
  • Stationary, office supplies.
  • Marketing/advertising fees.
  • Initial consultation to establish records with an accountant.
  • Rent for lot and office.
  • Establish a Web page for advertising.
  • Expensed equipment (two computers, two desk, Fax/copier, phone lines, and office furniture).
  • One month initial start-up investment in vehicles.

Sources of Funds

We will be needing $130,000 to start. $100,000 will be a long term business loan. Jonathan will give $20,000 and Don will give $10,000. 

Projected Profit & Loss

Projected balance sheet, projected cash flow statement.

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car auction business plan

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How to Start a Car Auction Business?

how to start Online Car Auction

So many options to buy a car nowadays! Car dealers, classic and online auctions. Which one to pick? If you need something custom and don’t care about money, car dealers can be your option. When it comes to a cheap vehicle many customers opt for car auctions. Often auctions offer good deals because customers love the sense of a bargain. The idea of running auto auctions was born in the mid-1950s, to get rid of old cars. Nowadays thousands of auctions worldwide offer luxury, retro and everyday automotive to satisfy everyone’s needs. Over 9 million cars were sold last year worldwide.

Quick note: Merkeleon built such a car auction for Renault. In this case study , we tell how it went: why Renault chose Merkeleon, how our developers worked, and how they addressed arising issues. Check out!

car auction business plan

Let’s start the ball rolling with a question what is an auto auction?

An auto auction is a type of venture which allows customers to buy a car through a bidding process. Many auctions in the US or Japan have partnered with car dealers, but many online auto auctions are suitable for individual sellers. The mentioned type of auctions allows simple and quick buy from your home.

Why auto auction?

Online car auctions are advantageous to business owners because they are not obligated to pay for long-term sales space, utilities, or employee sales wages. So, many business experts consider auto auctions as a profitable venture. Mentioned mean of business has a significant potential for growth. Many car auctions employ hundreds of people and have incorporated multiple departments on more than 100 acres of facilities.

What’s the difference between classic and online auction?

There is only one thing that makes classic auto auctions different from its online relative. That is the customer should be present during the bidding process. It is conducted by a supervisor all the way: presenting the lot, bidding and declaring the winner. The action of online auctions takes place on a website, where the bid auction software does whatever supervisor can.

What do I need to start an auto auction?

• business plan.

According to the US government, 40% of the startup companies lack a considerate business plan. The business plan could be your lighthouse. Spend at least three hours a day reviewing your business plan, which is a great source of insights.

• Budgeting

Sit down and estimate your expenses on marketing, documents, rent, auction software programs, and maintenance. Get yourself a hand to understand how much money does it take to start the business.

• Pick car auction software 

Around 50% of potential customers left online auctions because a website was difficult to navigate. Try to imagine user’s behavior: all the buyer needs to do is to make a few clicks straight away from registration to money transfer. That’s a simple guide to choose best online car auction software.

• Research and analysis

Ask yourself a question “Why Am I better than competitors?”. Think about the strengths of your business that will beat competitors. So do think twice about your software and the features that similar services don’t have.

Individual seller or car dealer? Choose the one that fits your business needs better and the market where you are. Imagine, you have a dozen competitors. You need the advantage to stand out from the crowd, so the service should support both individual sellers and car dealers. This could be your key to success. Anyway, keep an eye on the market, and if you are on the budget choose the type of seller that profits the most.

Take a look at some good examples of best online car auction sites

High-end Japanese auto auction has more than 10k lots around Japan. USS is the first kind of online auto auction with no middleman comes to my mind.

• Autotrader.com

A leader in selling second-hand vehicles in North America with a long history of downs and ups.

• Ebay car auction

The Auto auction by eBay blasting with hot offers on exclusive racing and retro cars. Make sure you have seen all the lots they have. It is a huge platform for any taste and price range.

A new-generation auction that has embedded apps for mobile platforms. The main competitor of AutoTrader.

• AuctionExpert

The big boss of auto online auctions. About 230k lots are present on this platform. Any range of car: from retro to casual or custom made.

A European online car marketplace that sells cars at a competitive price.

• Autorola.com

Another car marketplace from Europe. Autorola has a significant portfolio of auto auctions by country. Just find your local auction if you live in Austria, not necessarily to go to Denmark.

It’s time for some stats.

Car auctions share a significant piece of the pie of. It is reported in the “Cox Automotive 2018 Used Car Market Report & Outlook Forecast” that “Used cars should experience strong demand and growth in sales across the U.S. in 2018” while “a decline in new-car sales to be expected in the future”. The report says the same thing “Overall UK Auto Industry Sales Figures monthly and yearly” and “Number of cars sold at auction in the United Kingdom (UK) from September 2014 to January 2016 (in units)”.

The amount of car sold in January 2016 in the UK is 169,678.

Now let’s draw attention to the chart “Number of cars sold at auction in the United Kingdom (UK) from September 2014 to January 2016 (in units)”.

110 322 deals have been made on the auto auctions in January 2016 in the UK. That’s 65% of the monthly car sales in the UK (January 2016).

The other thing that contributes to the growth of auto auctions is technology advancement. Auction software leaves no place for a salesman foisting a feature you would better send to the automotive hell, hence the customer can research and pick the options in which there is a real need.

According to the 2016 Beepi consumer automotive index “87% of Americans dislike something about car shopping at dealerships” while “52% of car shoppers feel anxious or uncomfortable at dealerships ”, it goes like this when you choose car dealerships, “ Among millennial women, 62% feel pressured to buy right away and 49% said they felt tricked into buying features they didn’t need”, sounds really convincing, eh? So why not to make some car shopping? And the last already mentioned fact is the price if you haven’t convinced where to buy. According to moody’s “the used car and truck Consumer Price Index will post a year-over-year decline of 1.07% in 2019, slowing from a 3.63% decline in 2017, before prices reach bottom in 2020”. That’s not a good news for businesses but it surely is a sweet nothing to buyers on the budget.

To conclude

Making an online car auction site is a decision that will give the owner a roadmap to fortune. No need to have a fat wallet and hire a crowd of people. The car auction software will save time and expenses. Merkeleon is a company that caters for any client who has an idea to make an online auto auction. We are trying our best to make your best on the market. Stand up and give us a call, if your venture needs to take a step forward.

If you’d like to get more details to the turnkey car auction software solutions, please visit the following page about online auction software or feel free to contact us and get free demo or professional consultation.

car auction business plan

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How to start a car auction business

How to start a car auction business

Starting a car auction business can be a lucrative venture, but it’s important to plan ahead and make sure you’re doing everything right from the start. In this blog post, we’ll walk you through the process of starting a car auction business, from setting up your company to marketing your services. We’ll also give you some tips on how to find success in this competitive industry.

What you need to start a car auction business?

Starting a car auction business requires more than just a love of cars. You need to understand the industry, get licensed, and develop relationships with dealerships, private sellers and buyers. Here’s what you’ll need to start your own car auction business:

1. Business License: Depending on where you live, you may need to apply for a business license or other permits from local or state government. Make sure that your license is up-to-date and that all paperwork is in order before holding an auction.

2. Insurance: Along with the required licensing, you should also obtain proper insurance coverage for your business to protect against potential liabilities. This can include general liability and errors & omissions insurance policies tailored specifically for car auction businesses.

3. Property: You’ll need to secure a location for your car auction business, either through rental or purchase, depending on what works best for you and your budget. Make sure that the space is large enough to accommodate your customers and auctions and includes a loading dock or other amenities such as restrooms, food services, etc.

How to find and buy cars for your auction business?

There are several ways you can find vehicles to add to your inventory. You may wish to buy cars from private sellers through classified ads or online auctions, or purchase them directly from dealerships or leasing companies. If buying directly from a dealership, it’s best to get a wholesale price so you can make a profit when reselling.

How to set up and run your car auction business?

Launching a successful car auction business can be both rewarding and challenging. It requires a significant amount of planning, research, and preparation in order to ensure your business is successful. Here are some tips on how to start your car auction business:

1. Research & Develop Your Business Plan – Before you launch your business, it’s important to develop an in-depth plan outlining all aspects of the process. This should include research into the local market, potential customer base, and any competitors that may exist. Additionally, developing strategies for marketing your services as well as pricing them appropriately will also help you stay organized and prepared for when you do officially launch your car auction business.

2. Obtain Necessary Licenses & Insurance – Before you start your business, it’s important to ensure that you have all the necessary licenses and permits required by the local government. Additionally, insurance is also a must as this will protect you from any potential liability issues that may arise in the course of running your business.

What types of licenses and permits are required to operate a car auction business, and what is the process for obtaining them?

Being in the car auction business requires having the right licenses and permits from the relevant authorities. It is essential to get the required documents in order to ensure the legality of the business. Depending on the type of vehicle auction and the state or city it is located in, the types of licenses and permits required can differ.

  • A business license is generally the first requirement for any car auction business. This is a document issued by the government that allows the business to legally operate in a specific state or city. A business license also often includes other permits, such as a sales tax permit and a seller’s permit. It is important to check with the local government to find out what other permits are required.
  • In addition, some states or cities may require a special license for car auctions, which is usually issued by the Department of Motor Vehicles. This license allows the business to legally buy, sell, and trade vehicles at auction. The process for obtaining this license varies by state, but typically involves submitting an application and providing proof of insurance, registration, and other documents.
  • Other permits that may be required include a zoning permit, building permit, and health permit. A zoning permit is required to ensure that the business is operating in a legally designated area. A building permit is required for any construction that is necessary for the business, such as setting up auction blocks or storage facilities. Finally, a health permit is necessary if food is served at the auction, as it ensures that the food meets health and safety standards.

To sum up, obtaining the necessary licenses and permits to operate a car auction business is essential for the success of the business. The types of licenses and permits required can vary depending on the state or city in which the business is located, and the process for obtaining them can also vary. As such, it is important to research the specific requirements in order to ensure the legality of the business.

What are the costs associated with operating a car auction business, such as leasing or purchasing property, hiring staff, and marketing expenses?

Operating a car auction business can be a lucrative business, but there are certain costs associated with it that must be accounted for when weighing the upside potential. The costs of running a car auction business include leasing or purchasing property, hiring staff, and marketing expenses.

Leasing or purchasing property for a car auction business can be expensive. The size of the space you need for the auction will depend on the volume of cars and the number of attendees you are expecting. Additionally, you may need to purchase or rent additional space if you plan to store cars on-site. You will also need to factor in the cost of utilities, insurance, and maintenance.

Hiring staff is an important part of running a successful car auction business. You will need to hire staff to manage the auction process and handle customer service. Depending on the size of the business, you may need to hire a team of auctioneers, clerks, salespeople, and security. You will also need to factor in the cost of employee benefits such as health insurance and paid time off.

Marketing expenses are also an important cost to consider when launching a car auction business. You will need to invest in marketing to reach potential buyers and sellers. This may include advertising in print, online, or on television, as well as creating promotional materials such as flyers and posters. You may also want to consider sponsoring events or trade shows to get exposure for your business.

Overall, there are many costs associated with operating a car auction business. It is important to carefully consider all of these expenses before launching a business, to ensure that you can make a profit.

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Car Dealership Business Plan: Complete Guide

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  • January 11, 2023

car auction business plan

Whether you’re looking to raise funding from private investors or to get a loan from a bank (like a SBA loan) for your car dealership, you will need to prepare a solid business plan.

In this article we go through, step-by-step, all the different sections you need in your car dealership business plan. Use this template to create a complete, clear and solid business plan that get you funded.

1. Executive Summary

The executive summary of a business plan gives a sneak peek of the information about your business plan to lenders and/or investors.

If the information you provide here is not concise, informative, and scannable, potential lenders and investors may lose interest.

Though the executive summary is the first and the most important section, it should normally be the last section you write because it will have the summary of different sections included in the entire business plan below.

Why do you need a business plan for your car dealership?

The purpose of a business plan is to secure funding through one of the following channels:

  • Obtain bank financing or secure a loan from other lenders (such as a SBA loan )
  • Obtain private investments from investment funds, angel investors, etc.
  • Obtain a public or a private grant

How to write an executive summary for your car dealership?

Provide a precise and high-level summary of every section that you have included in the business plan. The information and the data you include in this segment should grab the attention of potential investors and lenders immediately. Also make sure that the executive summary doesn’t exceed 2 pages.

The executive summary usually consists of the 5 main paragraphs:

  • Business overview : introduce your car dealership: what is your business model (franchise vs. independent business ; new vs. used car dealership), how many cars will you have in inventory? Are you partnering with any car manufacturer(s)? Where would your store be located? Etc.
  • Market overview : briefly analyze the car dealership industry in your area (market size and growth), your competitors and target customers: average income of your target audience, demographic distribution, customer preferences etc.
  • Management & people : introduce the management team and their industry experience. Mention your business partner(s), if any. Also give here an overview of the different teams, roles and their reporting lines
  • Financial plan : how much profit and revenue do you expect in the next 5 years? When will you reach the break-even point and start making profits? Also include here a small chart with your key financials (revenue, net profit )
  • Funding ask : what loan/investment/grant are you seeking? How much do you need? How long will this last? How will you spend the money?

car auction business plan

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2. Business Overview

In the business overview section of your car dealership business plan, you should expand on what your company sells, to whom, and how it is structured. A few examples of questions you must answer here are:

  • The history behind the project: why did you choose to open a car dealership today?
  • Your business model : Are you franchising or is this an independent store? Are you selling new or used vehicles?
  • Products & services : What vehicles / brands do you plan to sell? Are you planning to add any additional services (e.g. car repair & checkups, etc.)
  • What is the legal structure of your company? Who are the directors / shareholders?

a) History of the Project

Briefly explain how did you come up with the plan to start a car dealership business. What motivated you to get into this business venture? 

Also try to demonstrate to investors your interest and passion for the car industry and car dealership in general.

For example, you might have worked in a car dealership and/or at a car manufacturer sales department in the past, and found immense growth potential for this type of business in your area.

car auction business plan

b) Business Model

Explain in this section what business model you chose for your car dealership. Here are a few questions you must answer:

  • Will you start an independent dealership, franchise model, chain store, etc.?
  • Will you open a brand-specific dealership?
  • Would your car dealership deal in new cars, used cars, or both?
  • Do you plan to open an online dealership?
  • Would you offer service and repairs in your car dealership?

c) Products & Services

Now that we have briefly introduced what your business model is, you must explain in detail what exactly you intend to sell. There are 2 things here:

  • Products (cars): what vehicles and brands do you intend to sell? Why did you choose these vehicles / brands?
  • Services : if you offer additional services (e.g. car repairs, checkups), explain what they are

In addition to the products and services, you should also include a list of prices for each. Of course, this doesn’t need to be exact. Car prices fluctuate based on various factors. Yet, you must be able to provide a range of prices for each category (e.g. sedan, luxury cars, vans, etc.).

If you specialize in a specific brand, you can provide a list of prices per model in appendix as well.

The prices are important as they will allow investors to tie your product offering with your financial projections later on.

car auction business plan

d) Legal Structure

Explain the legal structure of your nursing home in this section. Are you starting a corporation, a limited liability company, or a partnership? Who are the investors? How much equity do they actually own? Is there a board of directors? Do they have prior industry experience?

3. Car Dealership Market Overview

A complete understanding of the car dealership industry is important for the success of your business.

Therefore, you must cover here 3 important areas:

  • Status quo : how big is the car dealership industry in your area? How fast is the market growing? What are the trends fuelling this growth (or decline)?
  • Competition overview : how many car dealership competitors are there? How do they compare vs. your business? How can you differentiate yourself from them?
  • Customer analysis: what are your target customers? What are their customer preferences?

a) Status quo

When looking at the car dealership industry, try to start at the national level (US) and narrow it down to your service area (a city for example). You should answer 2 important questions here:

How big is the car dealership industry in your area?

How fast is the car dealership industry growing in your area, how big is the car dealership industry in the us.

The auto parts and car dealership industry in the US is huge: it was worth $1.18 trillion in 2021 as per the National Automobile Dealers Association . As per the same report, there were 16,676 light vehicles car dealerships in the US in 2021 which generate an average revenue of $71 million.

car auction business plan

Sales are divided between new (52%) and used vehicles (37%) as well as services and parts (11%).

car auction business plan

After the US, assess the size of the car wash industry in your city or area. Focus on the zone where you plan to offer your services.

Naturally, you might not be able to get the data for your specific city or region. Instead, you can estimate the size of your market, for more information on how to do it, read our article on how to estimate TAM, SAM and SOM for your startup .

Luckily, NADA publishes statistics per state so you can narrow it down easily. For your city instead, you will need to do work out some estimates. To give you an example, let’s assume you plan to operate in an area where there are already 30 car dealership businesses (in a 25 miles radius for example).

Assuming our business is based in Connecticut, we can use the state’s average annual turnover of $49,661 : we can reasonably assume that the car dealership industry is worth $1.5 million in your area . In other words, there are over 35,100 light vehicles (new and used) being sold in your area each year (assuming the average retail price of $43,000).

Now that we know your area’s market size, let’s look at growth instead.

Fortunately, you can use NADA’s number again as they publish annual reports. Just use your state’s market size growth, and explain the growth (or decline). This can be due to average car prices, or volume.

car auction business plan

b) Competition overview

You should discuss both your direct and indirect competition in your business plan. Other car dealerships in the region will be your immediate competitors. Internet auctions, individual dealers, etc., will be your indirect competitors. 

In this section, you should also discuss the essential components of the business models of your main competitors. Your research should be focused on their clientele, the kinds of cars they offer, and their strengths and weaknesses.

A thorough competitive analysis is crucial as it may allow you to discover and address a customer need or preference that none of your rivals is addressing today.

Here are some of the questions that you must answer in this section:

  • How many competitors are there in the area where you want to open your car dealership?
  • Are they franchises or independent stores?
  • Do they partner with specific car manufacturers?
  • What type of cars do they offer (luxury, economy, used, new, etc.)?
  • What is the average price range of the cars they sell?
  • How many employees do they have?
  • Do they offer services and repairs?
  • Do your competitors offer buyback on the cars sold by them previously to the client?
  • What type of offers and discounts do they offer to attract customers?
  • How many cars / vehicles do they sell on average per month?

car auction business plan

c) Customer analysis

Now that we have a good idea of the car dealership industry in your area as well as competition, now is time to focus on your target audience: customers.

Knowing your customer is extremely important before you get into any business. This is all the more relevant for car dealership where customer preferences and tastes are very different.

For example, if you are planning to get into a luxury car dealership business, you should look into:

  • The estimated population of high-income people in your area
  • Types of luxury cars that are in demand (hatchback, sedan, SUV, etc.)
  • Shopping preference of your target customers (online or offline)
  • How frequently do they buy (or exchange) new cars?
  • Is their buying decision influenced by offers or discounts?
  • What features do your target customers want in their new luxury cars?
  • What type of additional services do they expect from their dealers?

4. Sales & Marketing Strategy

This is the section of your business plan where you outline your customer acquisition strategy. Try to answer the following questions:

  • What are the different marketing strategies you will use?
  • What are your Unique Selling Points (USPs)? In other words, how do you differentiate from your competitors?
  • How do you intend to track the success of your marketing strategy?
  • What is your CAC or customer acquisition cost?
  • What is your marketing budget?

What marketing channels do car dealerships use?

A few marketing channels that car dealership businesses typically use are:

  • Signage, billboards
  • PPC ads, Facebook ads, etc.
  • Print media
  • Loyalty programs
  • Online local listing (Google Business)
  • Content marketing (share content like vehicle maintenance tips, safe driving tips, etc.) on platforms like blogs, social media, etc.
  • Word of mouth, recommendations

You must have a fair and nearly accurate estimate of your marketing budget. Therefore, make sure to budget for marketing accordingly in your financial projections.

car auction business plan

What are your Unique Selling Propositions (USPs)?

In other words, how do you differentiate yourself vs. competitors? This is very important as you might need to win customers from competitors.

A few examples of USPs are:

  • Products: you may be the exclusive distributor or a car make in your area for example
  • Services : you may offer repairs and regular checkups for your customers
  • Location : you store is closer to a busy road and/or to where your customers live

Your USPs will depend on your business model, competitor analysis, and target audience. Whatever your USPs are, it should appeal to your potential customers and attract them.

5. Management & People

You must address 2 things here:

  • The management team and their experience/track record
  • The organizational structure: the different team members and who reports to whom

Small businesses often fail because of managerial weaknesses. Thus, having a strong management team is vital. Highlight the experience and education of senior managers that you intend to hire to oversee your car dealership.

Describe their duties, responsibilities, and roles. Also, highlight their previous experience and explain how they succeeded in their previous roles.

Organization Structure

Even if you haven’t already hired a VP of sales, sales managers, support staff and any other relevant staff members, you must provide a chart of the organizational structure outlining the different teams, roles and their reporting lines.

car auction business plan

6. Financial Plan

The financial plan is perhaps, with the executive summary, the most important section of any business plan.

Indeed, a solid financial plan tells lenders that your business is viable and can repay the loan you need from them. If you’re looking to raise equity from private investors, a solid financial plan will prove them your car dealership is an attractive investment.

There should be 3 sections to your financial plan section:

  • Your historical financials (only if you already operate the business and have financial accounts to show)
  • The startup costs of your project (if you plan to start a new car dealership, or purchase new inventory, expand your store, etc.)
  • The 5-year financial projections

a) Historical Financials (if any)

In the scenario where you already have some historical financials (a few quarters or a few years), include them. A summary of your financial statements in the form of charts e.g. revenue, gross profit and net profit is enough, save the rest for the appendix.

If you don’t have any, don’t worry, most new businesses don’t have any historical financials and that’s ok. If so, jump to Startup Costs instead.

b) Startup Costs

Before we expand on 5-year financial projections in the following section, it’s always best practice to start with listing the startup costs of your project. For a car dealership, startup costs are all the expenses you incur before you open your shop and starting making sales. These expenses typically are:

  • The lease deposit for the commercial space you rent (if you don’t buy it)
  • The design and renovation of the existing facilities
  • The inventory costs (the initial stock of vehicles you must buy to sell them at opening)

For example, let’s assume you want to buy 30 light vehicles as a start for inventory, and you take on a loan where you need to put down 15% upfront. Now, assuming these vehicles each cost $50,000 on average, this means you must put down $300,000 yourself. This comes in addition with any other startup cost mentioned above (lease deposit, renovation costs, etc.).

c) 5-Year Financial Projections

In addition to startup costs, you will now need to build a solid 5-year financial model as part of your business plan for your car dealership.

Your financial projections should be built using a spreadsheet (e.g. Excel or Google Sheets) and presented in the form of tables and charts in your business plan.

As usual, keep it concise here and save details (for example detailed financial statements, financial metrics, key assumptions used for the projections) for the appendix instead.

Your financial projections should answer at least the following questions:

  • How much revenue do you expect to generate over the next 5 years?
  • When do you expect to break even?
  • How much cash will you burn until you get there?
  • What’s the impact of a change in pricing (say 20%) on your margins?
  • What is your average customer acquisition cost?

You should include here your 3 financial statements (income statement, balance sheet and cash flow statement). This means you must forecast:

  • The number of vehicles you sell over time ;
  • Your expected revenue ;
  • Operating costs to run the business ;
  • Any other cash flow items (e.g. capex, debt repayment, etc.).

When projecting your revenue, make sure to sensitize pricing and the number of customers as a small change in these assumptions will have a big impact on your revenues.

car auction business plan

7. Funding Ask

This is the last section of the business plan of your car dealership. Now that we have explained what type of vehicles your company sells to whom and at what price, but also what’s your marketing strategy, where you go and how you get there, this section must answer the following questions:

  • How much funding do you need?
  • What financial instrument(s) do you need: is this equity or debt, or even a free-money public grant?
  • How long will this funding last?
  • Where else does the money come from? If you apply for a SBA loan for example, where does the other part of the investment come from (your own capital, private investors?)

If you raise debt:

  • What percentage of the total funding the loan represents?
  • What is the corresponding Debt Service Coverage Ratio ?

If you raise equity

  • What percentage ownership are you selling as part of this funding round?
  • What is the corresponding valuation of your business?

Use of Funds

Any business plan should include a clear use of funds section. This is where you explain how the money will be spent.

Will you spend most of the loan / investment to acquire the cost for the inventory (the vehicles)? Or will it cover mostly the cost of buying the land and building the store?

Those are very important questions you should be able to answer in the blink of an eye. Don’t worry, this should come straight from your financial projections. If you’ve built solid projections like in our car dealership financial model template , you won’t have any issues answering these questions.

For the use of funds, we recommend using a pie chart like the one we have in our financial model template where we outline the main expenses categories as shown below.

Privacy Overview

Online Car Auction: Setting up a Car Dealership Proposal

Introduction.

The auto industry is one of the largest industries in the world and this creates a lot of problems for various stakeholders in the industry. This essay will explore avenues that could be used in the process of setting up a car dealership within the car auction business. The essay is also going to look into ways and means of shipping cars within the car auction industry.

The auto industry has evolved over the years and this has made car sales to increase through use of different channels. One of the growing channels for sale of cars is the internet due to the growth of online car auctions sales.

The online car auction has been on the rise and as a result, car dealers in the world currently make use of e-commerce sites to advertise and conduct trade. Therefore, several pre-requisite have to be met in the process of establishing an online car auction.

There are several factors that one needs to consider before starting a business especially in the auto industry. The best tool to use in analysing a business start-up is a SWOT analysis on all factors affecting the online car auction industry. Moreover, we will also analyse the export of cars and the general trend within the auto industry.

Type of Business: Before any person or organisation intends to start a business, a consideration on the kind of business has to be analysed. For instance, in the auto industry an organization can consider if they are going to sell at the retail or wholesale level. An organisation might come up with its own online portal like EBay or if it is the case of an individual, he/she might make use of a site like EBay.

Moreover, in most cases retail auto dealers sell to individuals while wholesale business in most cases deal with selling to other dealers in different regions.

Consequently, an organisation or an individual might decide to focus on selling all types of vehicles or to sell a certain kind of automobiles (Krane, 2003). For instance, an organisation might have a niche and decide to sell trucks only, sedans only or other segments of vehicles in the auto industry.

Cost: This is a major factor that needs to be factored in the process of establishing an online auction business. Various costs have to be incurred in the process of establishing an online auction site. These costs include registration costs, licensing, advertising, and operational costs among others.

As a result, careful budgeting and planning has to be done. However, the major costs that an online business owner should watch out are security and shipping. Online transactions are faceless and thus it susceptible to fraud and therefore adequate security measures should be undertaken (Rubenstein, 2010).

Another major worry for online businesses is shipping especially in the case of international trade since several countries have different shipping rates and rules. While shipping to some regions could be considered non-commercially viable with problems like piracy and the sort.

Thus, in an online auction you could either set for the customer to pay for shipping or for you to pay the shipping (Morris, 2011). These are some of the major cost factors that need to be addressed in the process of setting up an online auto auction business.

Licensing: Before you set up an online auto auction in the United States of America, an organisation has to secure different business licenses. One of the mandatory licenses is a driver’s license that has to be issued with the US motor vehicle department. It is important to note that an individual can sell a limited number of vehicles without a license.

This rule however does not apply for businesses or people selling large consignments of cars (Sinclair, 2007). Businesses exporting used or new cars the Unites States have to register with the office of foreign trade and this makes business more challenging. Apart from business and foreign trade licenses, businesses have to also consider that some countries require a certificate of vehicle inspection form the country of origin.

This document is used to ascertain that certain regulations such as the age of the car do not exceed a certain number of years. For instance, Saudi Arabia only allows 4 year old cars to be imported into the country. Thus, all these licenses have to be acquired by the business during set up process.

Price: This is a major factor considered by consumers and sellers in the process of trade. A consumer will buy a car or product based on the price of the car at the time of the sale. As a result, the seller has to price his car competitively for his/her car to be bought and at the same time make a profit.

During the setting up of an online auction site, thorough research has to be conducted before a reasonable reserve price is set. Factors that need to be factored in this process include the age of the car, mileage, features of the car (Jerenz, 2008).

It is advisable to include and document all the features and condition of the vehicle for it to attract genuine and competitive bids. Since the online auction business relies on trust based on information shared in the process of conducting trade. Availing all the information is necessary in attracting customers and at the same time building a good reputation for the business (Rubenstein, 2010).

Insurance: The auto industry relies heavily on insurance for the protection of interests of all stakeholders. Thus, an online auto auction business owner should have insurance all the cars his/her organisation is selling. This helps in cushioning the business against losses such as theft, shipping of damage to the vehicles.

Insurance covers such as general liability, comprehensive plans or a surety bond helps in protecting your business (Morris, 2011). For instance a surety bond might be expensive but it aids in covering of losses incurred as a result of failed contract with a supplier or vendor. The trade in used cars is lucrative but also risky hence an online auction business owner must get an insurance cover.

Documentation: In the process of doing business, it is important for documents of trade to be used. However, the online auction trade is mainly conducted without formal documents. In consequence, a business owner must make the effort to ensure all the needed and necessary documents are in order.

This is necessary for the purposes of trade since an online auction owner makes use of various channels within the trade process (Daft, 2006). For instance he/she has to work with custom officials during shipping, banks and other trade intermediaries. Moreover, the consumer has to be availed inspection documents, warranties, mileage and other documents necessary after purchase of the vehicle (Barringer, 2008).

The online auto auction of used cars has grown over the years due to various factors shaping the business world. The advancement of technology has accelerated online trade and the auto industry has also taken cue. Therefore, more auto online trade is conducted today and most of the trade is on used vehicles.

Sites like EBay sell cars based on user ratings for different third party car buyers and sellers (Jarvenpaa, 2008). The successful implementation of the online trade has been based on trust and security measures under taken by online auctions site owners.

The major driving force is price and the factors listed above with a bid to maintain and grow this industry. Based on research conducted, the auto online auction for used cars is set to grow due to consumer demand and ease of doing business. Therefore, it is recommended for a business owner to consider selling used cars using online auctions sites bearing in mind the above business factors.

Conducting an online auction site is quite challenging and business owners have to conduct good business research before commencing business. This is made more difficult since trade is conducted online where transactional and security risks are great. As a result, a business owner has to conduct good research and take the necessary precautions in opening an auto online auction business.

Some of the factors he should look into are insurance, licensing, price and costs and if these factors are catered for and mitigated then a good business can be developed. The auto online auction trade is set to grow and this will have a good ripple effect on business owners venturing in this trade.

Barringer, B. (2008). The Truth About Starting a Business. London: Allen & Unwin.

Daft, R. & Marcic, D. (2006). Understanding Management. Detroit, MI: John Wiley and Sons.

Jarvenpaa, S. L., Tractinsky, N., & Vitale, M. (2008). Consumer trust in an internet store. Information Technology and Management , 45–71.

Jerenz, A. (2008). Revenue Management and Survival Analysis in the Automobile Industry. Chicago, IL: Cengage Learning.

Krane, B. & Markowitz, J. (2003). Analysis of eBay . New York, NY: Lippincott Williams & Wilkins.

Morris, M. (2011). Starting a Successful Business: Choose a Business, Plan Your Success . New York, NY: Jones & Bartlett Learning.

Rubenstein, J. (2010). The Changing Global Auto Industry: A Geographical Analysis. Boston, MA: Jones & Bartlett Learning.

Sinclair, J. & Spillane, T. (2007). eBay motors the smart way: Selling and buying cars, trucks . Denver, CO: Springer Publishing Company.

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IvyPanda. (2022, April 10). Online Car Auction: Setting up a Car Dealership. https://ivypanda.com/essays/online-auto-auction/

"Online Car Auction: Setting up a Car Dealership." IvyPanda , 10 Apr. 2022, ivypanda.com/essays/online-auto-auction/.

IvyPanda . (2022) 'Online Car Auction: Setting up a Car Dealership'. 10 April.

IvyPanda . 2022. "Online Car Auction: Setting up a Car Dealership." April 10, 2022. https://ivypanda.com/essays/online-auto-auction/.

1. IvyPanda . "Online Car Auction: Setting up a Car Dealership." April 10, 2022. https://ivypanda.com/essays/online-auto-auction/.

Bibliography

IvyPanda . "Online Car Auction: Setting up a Car Dealership." April 10, 2022. https://ivypanda.com/essays/online-auto-auction/.

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How Do Car Auctions Work?

car auction business plan

Ever thought about getting a car, but not through the usual dealership route? Welcome to car auctions —a place where you can grab great and used vehciles, often at a good deal. This guide is here to break down what car auctions are all about.

What Are Car Auctions?

Think of a car auction like a big car sale where you and others bid on cars. The person willing to pay the most gets the car. These sales can be organized by anyone—the government, car dealers, or even private groups of sellers.

How Does a Car Auction Work?

Here's the fun part. Cars are shown with a some info about them. People start making offers, and the price goes up. If you want the car, you'll have to bid higher than others. The person with the highest bid at the end gets the car.

Where Do Car Auctions Get Their Cars?

You might wonder where all these auction cars come from. Some are older cars people traded in for new ones, while others might have been taken back by banks, and some might just be from someone who collects cars and has too many.

Why are cars at auction so cheap?

Not all cars at auctions are super cheap, but many are more affordable. Why? Some cars might have been taken back by banks, or maybe a dealership had too many of a certain car. But remember, while you might get a good deal, there's always a bit of risk (which we’ll touch on below).

What are the pros and cons of buying a car at auction?

Getting a car at an auction can be a steal. But like everything, there are good and bad sides. You might get a great deal, but there might also be hidden issues with the car since everything's so fast-paced. Auction cars can be a treasure trove or a can of worms. Knowing the good and the bad can save you a lot of surprises. Auctions can offer a wide variety of cars at potentially lower prices. Especially if a vehicle has a minor defect that's easy to fix, or if you're looking for a rare model, auctions can be gold mines. It's easy to get swept up in the thrill of bidding and end up overpaying. Always do your homework, set a strict budget, and whenever possible, inspect the car or have a professional do it.

  • Affordability: Cars at auctions often come at a lower price than dealerships or private sellers.
  • Variety: Auctions provide access to a broad range of vehicles, from everyday models to rare finds.
  • Potential for Great Deals: With some research and patience, you can snag a car well below its market value.
  • Unknown Vehicle History: While some auctions provide vehicle reports, not all do. You might be unaware of potential issues or past accidents.
  • As-Is Sales: Many auction cars are sold "as-is", meaning you take on all the risks once the hammer drops.
  • Competitive Bidding: You could get caught in a bidding war and end up paying more than you intended.

Decoding Car Titles at Auctions

So you're thinking about venturing into car auctions? Great move! But before you jump into the bidding action, there's some essential lingo to get familiar with, especially when it comes to car titles. These titles are basically a car's resume, and just like job resumes, some have more colorful histories than others.

Salvage Title: The Lowdown

When a car has a salvage title, it means it's had some pretty significant damage in its past. Insurance companies label it a total loss , be it from accidents, weather damage, or other events. These cars often have tempting price tags at auctions. However, there's a catch: Getting them back on the road and insured might be more of a task than you'd expect. If you're considering one, it's smart to dig a bit deeper into its history.

Rebuilt Title: A Fresh Start

A rebuilt title indicates that a car, which once was branded salvage, has been fixed up and passed the necessary inspections to be deemed roadworthy again. In the auction world, these cars can look attractive since they've had some restoration. But remember, the quality of those repairs can vary. It's always a good idea to have the car checked out or get more information on the repairs before placing your bid.

Cleaning a Salvage Title: Upgrading its Status

In auction terms, transitioning a car from a salvage to a rebuilt title is like giving it a new lease on life. It's been through repairs, met specific standards, and passed inspections. The bonus? A car with a cleaned-up title is often easier to insure and can have ‌improved market value. However, always hold onto documentation of the repair process—it offers transparency and might be useful down the line.

The Car Auction Process

Alright, let's say you're ready to jump into an auction. What should you expect? From signing up to making that final bid, here's the rundown.

Registration and Preparation

First, you gotta sign up with the folks running the auction. They'll need some ID, maybe an address, and sometimes some cash upfront (don't worry, it's usually refundable). Do your homework on the cars available and figure out how much you're willing to spend.

This is where things heat up. You'll place your bid by raising a hand or, if it's online, by clicking a button. Stay sharp, know your max spend, and be ready to make quick decisions.

Reserve Prices

Some cars have a set minimum price. If no one bids that much, the car isn't sold. So, if you're wondering why a car didn't sell even though you had the highest bid, this might be why.

If you win a bid—congrats! Now you pay up. Depending on the auction, you can use cash, checks, or even bank transfers. Keep an eye out for extra fees.

What Happens After You Buy a Car at Auction?

You won the car—now what? If you bought it online or from a place far from home, you'd need to figure out how to get it. And of course, there's paperwork, like getting the car's title in your name.

Digital vs Physical Auctions

With more people turning to online shopping, car auctions haven't been left behind. Let's compare online auctions and traditional in-person ones. Online auctions offer convenience. You can bid from anywhere, and they often have a wider selection. However, you're relying on pictures and descriptions, which might not reveal all the flaws. In-person auctions let you see and often inspect the car, but they require you to be physically present, which might be limiting. There are several renowned online car auction sites, like eBay Motors and Copart. Always read user reviews, understand their fees, and if possible, visit the car or send someone to inspect it before bidding.

Tips For When You’re At An Auction

Auctions can be exciting, but when you’re there, you want to make sure you’re getting a good deal. Follow these tips when you’re at one so you can guarantee you drive away for a decent ride—at a decent price.

Here’s a full list of websites we recommend:

  • eBay Motors
  • IAAI (Insurance Auto Auctions)
  • Auto Auction Mall
  • Cars and Bids
  • Capital Auto Auction

Inspect the Vehicles

If possible, always take the opportunity to inspect a car before making a bid (when attending an auction in person). Here's what you should keep an eye out for:

  • Body and Exterior: Check for any dents, rust, or signs of an accident. Remember, repairs can be costly.
  • Tires: Make sure the tires are in good condition and don't need an immediate replacement. You want to avoid as many out-of-pocket costs as possible when you drive away with your new vehicle.
  • Interior: Smell the inside a musty smell could indicate a leak. Also, check seats, controls, and the dashboard for wear or damage.
  • Engine: Even if you're not a car expert, a quick look can show signs of potential problems, like leaks or corroded parts.
  • History Report: If available, this can show if the car's been in accidents or had other significant issues.

Tips for Buying a Car at Auction

Jumping into the auction world can feel a bit like diving into deep water. Here are some tips to keep you afloat and get the best deal:

  • Know the Value: Research the market value of any car you're interested in. This way, you won't end up overpaying.
  • Stay Calm: Bidding wars can get intense. Remember to breathe and stick to your budget. If you can’t get the car you’re looking for on that day, you can always try again.
  • Ask Questions: Don't be shy. If you're unclear about something, ask the auction staff.
  • Check Payment Options: Different auctions have different rules. Know what they accept (and any fees) before you bid.
  • Understand the Terms: Some auctions might have "as is" sales, meaning you're getting the car with all its problems. Know what you're agreeing to.

Navigating Auction Fees

Winning a bid feels great! But don't forget about the extra costs. Many auctions charge a buyer's premium, which is a percentage of the final bid amount. So if you bid $10,000 and there's a 10% buyer's premium, you'll pay $11,000 in total. There might also be documentation fees, transportation costs, or even charges for online bidding. Always check the auction's terms and conditions, and factor these fees into your budget.

Ready, Set, Bid!

Car auctions offer an adventurous alternative to the traditional ways of acquiring a vehicle. Whether you're there for the thrill of the bid, hunting for a unique find, or just hoping to snag a great deal, there's a lot to gain from this experience. But remember, as with any adventure, it's best approached with preparation and knowledge. From understanding the importance of titles to anticipating extra costs and knowing how to spot potential issues with a vehicle, you're now armed with the essential info to navigate the bustling world of car auctions. So next time you hear the auctioneer's call, you'll be ready to bid with confidence and hopefully drive away with a gem of a find. Happy bidding!

About the Author: This article was crafted by the LOOP Marketing Team. Comprising of seasoned professionals with expertise in the insurance industry, our team is dedicated to providing readers with accurate, up-to-date, and valuable information. At LOOP, we're passionate about helping families navigate the world of car insurance, ensuring they get the best coverage at the most affordable rates. Learn more about our mission and values here.

For more insights on auto insurance and other related topics, visit our blog .

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Start A Classic Car Auction Business - Business Ideas

Please note that the data provided in this article are estimates and may vary depending on various factors, and should not be considered as perfect or definitive.

Starting a classic car auction business requires a great deal of effort, dedication, and most importantly passion .

If you're interested in how to sell classic car, or selling classic car online, you can use this page as a guide for everything you'll need to know.

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Successful businesses, pros & cons, marketing ideas, direct sales.

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For direct selling to succeed, hire a few (or many) salespeople to support the sales conversion process. It's critical that you assign them specific roles and responsibilities to nurture the client and provide excellent support.

Learn more about direct sales ➜

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Word of mouth is when a consumers reflects their interest in a company’s product or service in their daily dialogues.

Therefore, word of mouth advertising is essentially a free advertising triggered by the customers experience.

According to Nielsen , 92% of people trust recommendations from friends and family.

Therefore, in today’s hyper-connected world, a single recommendation through a word of mouth can have a huge impact to your business.

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Therefore, social media allows brands access to cost-effective advertising by enabling them to interact with a large audience.

Learn more about social media advertising ➜

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car auction business plan

Flipping Auction Cars For Profit: A Step-By-Step Guide

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Flipping cars from auctions is a great way to make money. It’s also a lot of fun and can be done on the side while you’re working full-time, or you can even turn it into a full-scale business. The concept of “car flipping” is relatively easy; you buy a vehicle at a reasonably low price, fix it up, and then sell it at a higher price for a nice profit.

Some people might think that the process of buying, fixing, and selling cars is too lengthy and complicated. However, the process has become much more straightforward and profitable with regular local auctions and the introduction of car auction websites. An average car flipper can make a profit of around $1200 per car ( ridester ), which is quite alluring!

What is Car Flipping?

Flipping cars usually includes purchasing a vehicle at a low price with the intention of selling it quickly to make fast money. Usually, people prefer to flip used cars, but you can also find people flipping new cars. The buying and selling for flipping is done privately and not through a dealership. The auto market has changed in the last few years, and this is one of the numerous new opportunities that are now available to make huge profits.

Difference between Car Flipping and Reselling

Flipping and reselling are often used interchangeably, but even though they seem similar, there is a critical difference between them. Flipping refers to buying something, fixing it up (if necessary), and selling it quickly for a profit.

Reselling, however, may or may not be for a quick buck. Some resellers can hold on to their assets for a long time, waiting for the market demand to reach a peak or for the correct buyer to show up. Used car dealerships function along the same lines – acquire pre-owned vehicles, fix them up, and then list them for sale, waiting for interested buyers to show up.

While the car flipping business might seem enticing, it isn’t without disadvantages. Let’s take a look at what’s good and what’s not.

Spyne price

Pros and Cons of Car Flipping

You can do car flipping for a living or as a one-time thing. Here, we have discussed some pros and cons of flipping auction cars that will help you decide to take a step toward this venture.

There are plenty of reasons why you should consider flipping vehicles:

  • Quick profits : This is the main reason anyone takes up car flipping. When done right, profits can range from $500-$2000. How much profit you make depends on factors like demand, rarity, price, etc.
  • Gaining mechanical knowledge : Fixing up cars gives you insight into various aspects of the vehicle. You understand the cost of repairing the mechanics, the body, or electrical repairs. This experience will help earn higher profits in future flips.
  • Being your own Boss : A big reason to pursue it as a business is that you would be in charge. Flipping cars for profit requires constant effort, but you can do it alone, and all the profits are your own.
  • Job Satisfaction : Having the vision to flip a car successfully can be a source of great personal pride, apart from financial returns. After a few successful flips, it will become easy to understand what makes flipping cars a profit and what leads to a loss.

Before you run off to create a car flipping business plan, take a look at the cons:

  • Unanticipated Expenses : Sometimes, the car you source turns out to have hidden issues, which increases the repair budget. These may be from undiagnosed faults, mechanical defects, etc. They add up and reduce your potential profits.
  • Over-Committing : This mostly happens in overestimating one’s potential. A complicated car can be challenging to deal with. Complications can lead to time delays or throw off your budget. When flipping cars, be realistic about your abilities, and outsource work when needed.
  • Holding Costs : The longer you have the car, the more money you lose on maintenance and cleaning. Another major factor you need to consider is depreciation when selling a relatively new car.
  • Difficulty Selling : Sometimes, you won’t find buyers for your vehicles as soon as you’re done flipping. This further increases the holding costs.
  • Time-Consuming : If you’re working alone, flipping a vehicle will be a time-exhausting activity. Even with a team, you must be more present in decision-making, which would also consume a lot of time.

The Art of Car Flipping

New to car flipping? Here are steps you can take to begin your journey:

Step 1. Finding Undervalued Vehicles

You can use car auction websites to find cars on the internet quickly. They usually have a search filter that allows you to find vehicles by make, model, or price range. Salvage Bid, eBay Motors, and Auto Auction Mall are great examples of such car auction websites.

You can also visit local auctions to find cars if you are unfamiliar with how the car auction websites work. You can follow magazines, like Auto Dealer Today and Used Car Dealer Magazine, to find offline auctions. They provide helpful information, including where such events are scheduled.

Be sure to check your local classifieds. Ask friends and family for leads on good deals at a local car auction or a swap meet.

Step 2. Setting A Budget

Setting a budget for your car flip is essential. $1,500 can be set for a serviceable vehicle with moderate mileage, and you have experience flipping cars. The profit on such a deal can be between $500-$800. A higher budget can translate to a higher profit, but we advise against spending over $5,000 on purchasing a car because the number of potential buyers decreases at higher prices.

Step 3. Checking Market Value

Preparation can help you find great deals on undervalued cars. Before you go to an auction, research the market price for common models, make, trims, and model years. At a public auction, the organizers sometimes reveal the inventory beforehand, allowing you to conduct thorough research. This will help you find the undervalued vehicle that can fetch you the most profit.

Step 4. Inspecting the Interior and Exterior

Before bidding on a car, it’s time to ensure it’s in good shape. Here are some things to look for:

  • Dents, scratches, and other damages – Check for all the damage sustained by the car in its previous life. You’ll need to fix them all before selling the vehicle yourself. Significant damages will drive your profits down, so you should only select cars with minor, fixable niggles.
  • Rust – Rusting is one of the most common problems with old vehicles. If you see rust on a car, don’t buy it! Instead, try finding another vehicle that doesn’t have any rust problems at all.
  • Low mileage – If a car has low mileage and looks like it hasn’t been driven much, this could be an ideal purchase opportunity for you!
  • Potential for sale – Remember that you’re buying a car only to sell it for a profit. As such, the automobiles you select must have the potential for further sales. If there isn’t any at all (or very little), then why bother buying it?
  • Documents – Never buy a car if its papers aren’t in order. As you have to sell it forward, improper documentation will only hurt your sale.

If you’re buying online, look closely at all the pictures and videos available. If possible, contact the seller directly and ask them about the details. We suggest checking the car out in person and performing a thorough vehicle inspection to know about all its flaws and shortcomings.

Step 5. Buying the Car for Flipping

If you’ve done your research and followed the steps above, you probably have a great deal in front of you. The next step is to buy a car. When purchasing through an online auction site, know what vehicle you want so you don’t waste time comparing makes and models. Any time lost will let other potential buyers swoop in and steal it.

Try to get in touch with the seller directly before bidding on their car; they may have some information that will help narrow your search (for example: how much time has passed since their last transmission service?).

That could save both parties time by avoiding unnecessary back-and-forth emails about whether or not certain things need replacing/updating/fixing. However, remember that this isn’t always possible through car auction websites.

Step 6. Fixing Issues and Getting the Car Detailed

Complete the necessary repairs and then list the vehicle for sale. The selling price will have to be reduced if the buyer has to do additional work on the vehicle before they drive it. It is an excellent practice to get the vehicle’s detailing done by a professional. The interior and exterior should be detailed to impress the buyer.

Step 7. Sell Your Car

Now, it’s time to sell. Choose the right platform to sell your vehicle – whether you want to go for offline or online means. In the former case, you can go for private buyers or a collector (if you have a classic car). For selling it online, you can choose from many different websites.

You can sell your vehicle on a regular online car retail platform, like Carvana and CarGurus, or opt for online car auctions . Choose your platform wisely, as not all have the same services and client base.

When selling cars online, write attractive description text and include high-quality images and videos with each listing so that potential buyers can get a virtual feel for the car without any hassle. If you’re unsure about spending bucketloads of money on photoshoots, try an automated car photography and editing platform like Spyne.

To Summarize

Flipping a car includes buying cars at a low price and selling them quickly for a profit. Auto auctions are an excellent place to buy undervalued cars for flipping, and car auctions can also be used to sell your flipped car. We have already discussed the steps to be followed from start to end, but after everything has been done well, how fast your car sells will come down to your listing. High-quality images and 360 car photography can go a long way in helping you boost your business.

If you do not want to burn a hole in your pocket for this, book a demo with Spyne today.

Q. Is flipping cars profitable?

Yes, it can be profitable. The profit depends on the vehicle you buy, how much you pay to fix it and how much you manage to sell it for. If the car you’re selling is in good condition and in demand, you’ll surely drive home with a heavy wallet.

Q. How do you flip a car for profit?

There are many auctions in the local market or on car auction websites. Once you’ve found the right auction, it’s time to determine what cars to buy. It’s crucial that you know what your budget is and how much profit you can make on each car. You don’t want to overpay for a car just because it looks good or has low miles, but don’t underpay either, lest someone steals your deal.

After acquiring a vehicle, you need to fix it up and make it ready for sale. Once that is done, choose how you want to sell your car – offline or online. Next, set a reasonable price that should be high enough to bring you profit but not turn away buyers.

Q. How much profit do car flippers make?

Profit margins can be high, with reports suggesting an average gain of $1,200 per car! However, it is a risky business. The vehicle you’re buying and selling may have been in a horrible accident, leaving it too damaged to be easily repaired, or it might just be a lemon.

You could lose money if you buy something that’s not worth selling forward, or if there’s some other issue with the vehicle that no one told you about before (like transmission problems, etc.). If everything goes well with your flips, then great! You’ll make some good cash on the side

car auction business plan

Young, enthusiastic, and curious are the three words that describe Spyne’s content team perfectly. We take pride in our work - doing extensive research, engaging with industry experts, burning the midnight oil, etc. Every word we write is aimed at solving our readers’ problems.

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UK Small Business Startups and Funding

  • Business Type
  • Business Plan for Auto Auction

Auto Auction Small Business Idea and Business Plan

Starting your own small business in the UK isn’t easy but having a properly developed business plan will help you achieve success.

To start a Auto Auction business in the UK, take the time and explain the idea via a business plan.

Understanding all of the aspects of the business idea will be the key to getting the Auto Auction business running like a well-oiled machine. The business plan you develop will help you organize the elements needed into a strategy that you can actually use to startup, by paving a clear road map as to what you need to follow for the lifespan of your business.

Starting a Auto Auction business isn’t easy, but when done right, it can lead to a lot of success.

To help you get started, you can use the free business plan builder tool to develop your own Auto Auction business plan.

The business plan template is very easy to use, is interactive and will quickly and easily help you create your business plan just by answering the needed questions about your small business idea.

Create your own Auto Auction business plan for free using the Business Plan Builder

The free business plan template builder is divided into a few easy to follow steps.

The free business plan builder template is provided by UKStartups.org to help you develop your own business plan. For step by step guidance, see the 5 steps below.

Once completed, the result will be a clean, professional plan that will help you start your own Auto Auction small business in the UK.

When you have completed your Auto Auction business plan, the next step will be to find available funding that will help, or to speak with a funding adviser who will assist you each step of the way to securing the needed funds to make your Auto Auction business startup.

If you are looking to limit your startup costs when starting up a Auto Auction small business in the UK, this free business plan builder tool will be it.

Starting a Auto Auction business is only one of the ways others have used this free business plan tool. There are hundreds of different ideas you can start, and if you need guidance, do reach out to a UKStartups expert to get the needed assistance and guidance.

Step 1. Your business information

To develop a proper Auto Auction business plan with the free business plan builder template, it is important to answer each of the questions about your business to the best of your abilities.

What is your business? What are the products/services you provide? Who are your customers? What are your goals…etc?

Having a clear explanation will help you create a in-depth business plan that you can actually use to start the Auto Auction business and to apply for needed funding to cover your startup costs.

Step 2. Projecting your revenues/income

The Auto Auction industry can have great results. Planning and projecting the financial figures to approximate what you will make each year is crucial to building a strong business plan.

What do you think your business will make from each of its products/services? Simply list your products/services, enter the appropriate financial figures (costs and expenses).

If you don’t have the figures, in many cases it is recommended to do a a bit more research on other Auto Auction businesses locally and within your own region to get an idea of potential revenue. You can do your best to estimate the figures and growth potential.

If you need assistance in projecting, you can always contact UK Startups funding experts for the help.

Step 3. Your business market

As a Auto Auction business, having a clear explanation of the market and industry that you are in will help you plan for the figure and will ensure you can take the business to the next level.

Explain your location of business, share specifics about your customers, showcase your competition and explain the advantages you have over your competition.

Step 4. The future plan

Starting your own Auto Auction business and getting it off the ground is important to you.

No matter if you’re planning on applying for government funding for your Auto Auction business or not, it is important to plan out the future and provide an explanation of how you will grow the business. This means explaining your marketing plan, your sales strategy and clearly outlining a growth plan for the next few years.

Be sure to break this down step by step to show how you intend on making sure your Auto Auction business can grow each year.

Keep in mind that often business plans are focused on key people. Be sure to discuss yourself, your role and any other key figures in the business as well.

Step 5. The financials

In the end, it all comes down to the financials. If you are seeking funding, or not – the business plan you develop needs to have clearly defined financials or projections. The business plan builder tool makes it easy to develop your financial charts by simply entering your expected revenues per month and year. If you don’t have the figures as it’s a new business be sure to project the figures based on your expectations. If you need help with this, ask the UK Startups experts .

A clear breakdown of your funding needs is also recommended in case you are seeking funding and this free business plan template will help you with exactly that. When developing your Auto Auction business plan using this free template, the above 5 steps are recommended in order to succeed. While there are other key points that will assist you in starting your business, finding funding...etc, the free template will help put you on the right path

Be sure to request a professional to review your business plan , to answer any questions you may have and to help you with the funding search once you’ve done the initial free template. You can request this directly via UKStartups.org and through the Small Business Startup Platform as a member.

If starting a Auto Auction business is just one of your ideas, perhaps considering other options, here are some popular small business’s others have chosen to startup

  • Korean Church
  • Heating Oil Supplier
  • Laundry Service
  • Paintball Center

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Sample Car Dealership Business Plan

how to start a car dealership business

Writing a business plan is a crucial step in starting a car dealership. Not only does it provide structure and guidance for the future, but it also helps to create funding opportunities and attract potential investors. For aspiring car dealership business owners, having access to a sample car dealership business plan can be especially helpful in providing direction and gaining insight into how to draft their own car dealership business plan.

Download our Ultimate Car Dealership Business Plan Template

Having a thorough business plan in place is critical for any successful car dealership venture. It will serve as the foundation for your operations, setting out the goals and objectives that will help guide your decisions and actions. A well-written business plan can give you clarity on realistic financial projections and help you secure financing from lenders or investors. A car dealership business plan example can be a great resource to draw upon when creating your own plan, making sure that all the key components are included in your document. The car dealership business plan sample below will give you an idea of what one should look like. It is not as comprehensive and successful in raising capital for your car dealership as Growthink’s Ultimate Car Dealership Business Plan Template , but it can help you write a car dealership business plan of your own.

Example – DriveDream Motors

Table of contents, executive summary, company overview, industry analysis, customer analysis, competitive analysis, marketing plan, operations plan, management team, financial plan.

Welcome to DriveDream Motors, your newest destination for all automotive needs in the vibrant heart of San Diego, CA. As a beacon of quality and reliability in the local car dealership scene, we are dedicated to elevating the vehicle purchasing experience. Our extensive range includes brand-new models directly from manufacturers and pre-owned vehicles that meet our stringent quality and reliability standards. Beyond sales, we provide a comprehensive array of automotive parts and accessories, positioning us as a one-stop shop for our customers. Our strategic location in San Diego ensures convenience for anyone visiting us, making their car buying journey as smooth as possible.

Our trajectory towards becoming the leading car dealership in San Diego is paved with key success factors and notable achievements. Leveraging the vast experience of our founder, who has previously steered a dealership to success, we have a solid foundation in business strategy and customer service excellence. Our competitive edge is further sharpened by offering a superior and diverse vehicle selection, exceeding customer expectations. Since launching on January 5, 2024, we have successfully established a compelling brand identity, secured a prime location, and are continuously building towards our vision with every milestone achieved.

The Car Dealership industry in the United States, with a valuation surpassing $1 trillion, presents a lucrative opportunity for DriveDream Motors. Expected to grow at a steady CAGR of 3% in the coming years, factors such as increasing consumer disposable income and a surge in demand for vehicles lay a fertile ground for our success. Particularly, the trend towards online car shopping aligns with our strategy to invest in a robust digital presence, enabling us to cater to a broader audience and secure a competitive advantage in the San Diego market.

DriveDream Motors is committed to serving a diverse clientele in San Diego, including families in search of reliable transportation, individuals looking for an upgrade, and military personnel stationed in the area. Recognizing the city’s commitment to sustainability, we also cater to eco-conscious buyers with a selection of electric and hybrid vehicles. By tailoring our inventory and services to these key segments, we ensure a broad appeal and meet the varied needs of our community.

Our competitors, such as North Park Auto Sales, Car Czar Auto Sales, and Branco Motors, each bring their strengths to the San Diego car dealership market. However, DriveDream Motors sets itself apart by offering an unmatched selection of superior quality vehicles and a wider variety of options, catering to the diverse preferences of the San Diego community. Our commitment to excellence in customer service and our extensive range of vehicles, from eco-friendly models to luxury sports cars, places us in a unique position to provide an unparalleled shopping experience.

DriveDream Motors has crafted a comprehensive marketing strategy that spans both digital and traditional platforms. Our product and service offerings range from new and used cars to automotive parts and customization accessories, catering to all automotive needs with competitive pricing. We leverage social media, SEO, and email campaigns to engage potential customers, complemented by community events and strategic partnerships for broader reach. Our focus on exceptional customer service and an innovative referral program are key to transforming customers into brand ambassadors, ensuring our growth in the competitive San Diego market.

Our operational blueprint focuses on maintaining a streamlined inventory system, conducting daily vehicle inspections, and leveraging a robust CRM. Key milestones include securing a prime location, completing necessary legal formalities, and launching a comprehensive marketing campaign. We prioritize continuous staff training and strive for excellence in customer service to enhance the buying experience. Our goal is to achieve initial sales targets and foster continuous improvement through customer feedback, adapting to market trends to ensure long-term success.

At the helm of DriveDream Motors is Isabella Lee, our President, whose extensive experience in the automotive industry and proven leadership skills form the backbone of our operations. Isabella’s strategic vision and passion for the automotive sector are instrumental in guiding our dealership towards achieving its ambitious goals, making her an invaluable asset to our team and driving us toward lasting success in the San Diego market.

Welcome to DriveDream Motors, a new and vibrant Car Dealership dedicated to serving the wonderful community of San Diego, CA. As a local business, we recognize the gap in the market for high-quality car dealerships within the area, and we’re here to bridge that gap. Our commitment lies in providing exceptional service and a diverse selection of vehicles to cater to every taste and need.

At DriveDream Motors, our offerings span across various categories to ensure we meet our customer’s expectations. We deal in both new and used cars, providing an extensive range of options for our buyers. Additionally, we understand the importance of maintaining your vehicle, which is why we also supply automotive parts and accessories. Our goal is to be your one-stop-shop for all your automotive needs.

Located in the heart of San Diego, CA, DriveDream Motors is perfectly positioned to serve the local community and beyond. Our strategic location allows us to connect with our customers easily and provide them with the convenience they deserve.

Our edge over the competition is clear. DriveDream Motors is spearheaded by a founder with a proven track record of success in running a car dealership. This experience is invaluable to us and is a pillar of our confidence in the success of our venture. Moreover, our commitment to offering better cars and a wider variety than our competitors puts us in a unique position to meet the diverse needs of our customers.

Since our establishment on January 5, 2024, as a Limited Liability Company, DriveDream Motors has hit several milestones. We’ve crafted a logo that resonates with our brand identity, chosen a company name that reflects our mission and vision, and secured an ideal location that promises a bright future for our dealership. These accomplishments are just the beginning of our journey towards becoming the leading car dealership in San Diego, CA.

The car dealership industry in the United States is a vast and thriving market. According to recent research, the industry generated approximately $1.1 trillion in revenue in 2019. This indicates the significant size and financial importance of car dealerships within the country. Moreover, the industry employs over 1.1 million people, making it a crucial source of job opportunities and economic growth.

Market projections suggest that the car dealership industry in the United States will continue to experience steady growth in the coming years. It is expected to have a compound annual growth rate (CAGR) of 3.7% from 2020 to 2027. The increasing demand for vehicles, coupled with the rise in disposable income and favorable financing options, are some of the factors contributing to the positive market outlook.

The trends in the car dealership industry bode well for DriveDream Motors, a new car dealership serving customers in San Diego, CA. One notable trend is the growing preference for electric and hybrid vehicles. As more consumers prioritize eco-friendly transportation options, DriveDream Motors can capitalize on this trend by offering a wide range of electric and hybrid models. Additionally, the shift towards online car shopping is another opportunity for the dealership. By providing a seamless online purchasing experience and offering virtual vehicle tours, DriveDream Motors can attract tech-savvy customers who value convenience and efficiency.

Below is a description of our target customers and their core needs.

Target Customers

DriveDream Motors will target a diverse range of customers, with a primary focus on local residents in San Diego. This segment includes both families seeking safe and reliable transportation and individuals looking for their first car or an upgrade. The dealership will tailor its inventory and services to meet the varied needs and preferences of this core demographic, ensuring a broad appeal.

Furthermore, DriveDream Motors will also aim to attract military personnel stationed in the San Diego area. The city’s significant military presence offers a unique customer base that requires dependable vehicles for both personal and professional use. Special promotions and financing options will be designed to cater to the needs of this segment, recognizing their service and providing value-added benefits.

Another important customer segment includes eco-conscious buyers interested in electric and hybrid vehicles. San Diego’s commitment to sustainability and its environmentally aware population make this an ideal target market for DriveDream Motors. The dealership will offer a selection of eco-friendly vehicles, along with information and incentives to encourage sustainable automotive choices.

Customer Needs

DriveDream Motors understands the essential need for high-quality cars among residents who value reliability, performance, and aesthetics in their vehicles. Customers can expect an inventory that meets rigorous standards, ensuring each car is not only visually appealing but also mechanically sound. This commitment to quality is the cornerstone of the dealership’s promise to its customers.

In addition to vehicles, DriveDream Motors recognizes the importance of offering top-tier car parts and accessories. Customers seeking to enhance their driving experience or maintain their cars in peak condition can find everything they need under one roof. The dealership prioritizes the availability of genuine, high-quality parts and accessories, catering to the specific needs of car enthusiasts and everyday users alike.

Moreover, DriveDream Motors appreciates the importance of providing a holistic customer experience. From the moment customers step into the dealership, they can expect attentive service tailored to their individual needs. Whether it’s finding the perfect car, securing financing options, or seeking advice on vehicle maintenance, the team is dedicated to ensuring satisfaction at every turn.

DriveDream Motors’s competitors include the following companies:

North Park Auto Sales specializes in offering a wide variety of used cars, including sedans, SUVs, and trucks, catering to a broad demographic looking for quality vehicles at competitive prices. Their price points vary widely, accommodating budget-conscious buyers as well as those seeking luxury pre-owned vehicles. Located in the heart of San Diego, they serve customers across the metro area, capitalizing on a prime location that attracts a diverse clientele. Key strengths include a vast inventory and strategic positioning, while a potential weakness might be the lack of new vehicle sales, limiting options for customers seeking the latest models.

Car Czar Auto Sales focuses on providing customers with a curated selection of used vehicles, emphasizing quality and reliability. Their products range from economy cars to premium SUVs, with price points designed to meet the needs of mid to high-end buyers. Operating out of a single location in San Diego, Car Czar Auto Sales targets local residents seeking vehicles that offer a blend of performance and value. A major strength is the personalized customer service and a rigorous vehicle selection process. However, their limited geographical reach and inventory might be seen as weaknesses compared to competitors with multiple locations and broader selections.

Branco Motors takes a unique approach by specializing in electric and hybrid vehicles, catering to environmentally conscious consumers seeking sustainable transportation options. They offer competitive pricing on a range of eco-friendly cars, positioning themselves as a go-to dealership for customers prioritizing green technology. Situated in a convenient San Diego location, Branco Motors appeals to a niche market within the city and its surrounding areas. Their key strength lies in the specialized focus on electric and hybrid vehicles, addressing growing consumer interest in sustainability. However, this specialization might also be a weakness, as it could limit their appeal to a broader audience not yet ready to transition to electric or hybrid vehicles.

Competitive Advantages

At DriveDream Motors, we pride ourselves on offering an unparalleled selection of superior vehicles that surpass our competitors in both quality and variety. Our commitment to excellence ensures that every car on our lot meets rigorous standards of performance, safety, and comfort, allowing our customers to shop with confidence. We understand the diverse needs and preferences of our clientele in San Diego, and by providing a wider range of options, we cater to every taste and requirement. Whether you’re in the market for a sleek sedan, a robust SUV, or an eco-friendly electric vehicle, our extensive inventory promises something for everyone, making us a one-stop destination for car buyers seeking the best.

Beyond our exceptional vehicle offerings, our competitive edge is further sharpened by our unparalleled customer service and tailored purchase experiences. We believe that buying a car should be as enjoyable as driving one, which is why our team goes above and beyond to ensure a seamless and personalized buying process. From offering expert advice without the pressure to sell, to crafting flexible financing options that fit various budgets, we prioritize the needs and satisfaction of our customers above all else. This customer-centric approach not only sets us apart from the competition but also fosters lasting relationships with our clientele, establishing DriveDream Motors as a trusted name in the automotive industry in San Diego.

Our marketing plan, included below, details our products/services, pricing and promotions plan.

Products and Services

DriveDream Motors caters to a diverse clientele, offering an extensive range of products and services designed to meet the needs of car buyers and owners alike. From those in the market for a brand-new vehicle to individuals seeking reliable automotive parts and accessories, DriveDream Motors ensures a comprehensive shopping experience. The dealership prides itself on its commitment to quality, customer service, and competitive pricing.

At the forefront of DriveDream Motors’ offerings are new cars. Customers can explore a wide selection of the latest models from various manufacturers. Whether one is looking for a compact car, an SUV, or a luxury sedan, DriveDream Motors provides a variety of options to suit different preferences and budgets. The average selling price for new cars at the dealership hovers around $35,000, with fluctuations depending on the make, model, and included features.

In addition to new vehicles, DriveDream Motors also specializes in used cars. This segment caters to buyers seeking quality vehicles at more affordable price points. The dealership meticulously inspects each used car to ensure reliability and customer satisfaction. The average selling price for used cars is approximately $20,000, though this can vary significantly based on the car’s age, condition, and mileage.

Beyond vehicle sales, DriveDream Motors offers an array of automotive parts. For those looking to replace or upgrade parts of their vehicle, the dealership stocks genuine parts that guarantee compatibility and performance. Customers can expect to find parts at an average price point of $150, although more specialized or high-performance parts may carry a higher price tag.

Lastly, DriveDream Motors provides customers with a selection of automotive accessories. These range from aesthetic enhancements to practical additions that improve the functionality and comfort of one’s vehicle. Accessories are competitively priced, with an average cost of $100. This allows customers to personalize their vehicles without breaking the bank.

Throughout its product and service offerings, DriveDream Motors remains dedicated to delivering value, quality, and a positive shopping experience. Whether customers are in the market for a new or used vehicle, or simply looking to maintain or customize their existing car, DriveDream Motors stands ready to serve the automotive needs of the San Diego community.

Promotions Plan

DriveDream Motors embraces a comprehensive marketing strategy to attract customers, with online marketing at the forefront of its efforts. By leveraging the power of the internet, the dealership ensures widespread visibility across multiple digital platforms. This approach includes utilizing social media channels, where engaging content will captivate potential buyers and foster a strong community around the brand. Furthermore, DriveDream Motors will invest in search engine optimization (SEO) to ensure its website ranks high in search results, making it easier for customers to find them when searching for new cars in San Diego, CA.

In addition to online marketing, DriveDream Motors will employ a variety of other promotional methods. Email marketing campaigns will keep subscribers informed about the latest deals, new inventory arrivals, and exclusive events. The dealership also plans to host test-drive events, allowing customers to experience the thrill of driving their dream cars firsthand. These events will not only serve as an excellent opportunity for direct engagement but also help to build lasting relationships with the community.

Local partnerships with businesses and community organizations will further amplify DriveDream Motors’ presence in San Diego. By collaborating on events and promotions, the dealership will tap into established networks, reaching a broader audience. DriveDream Motors will also explore traditional advertising avenues such as radio and local newspapers to ensure a well-rounded promotional strategy that connects with customers across different media.

To enhance customer experience and satisfaction, DriveDream Motors will implement a referral program. Satisfied customers will receive incentives for referring friends and family, creating a word-of-mouth marketing effect that is both authentic and powerful. This strategy acknowledges the value of personal recommendations in the automotive industry and leverages it to attract new customers.

Lastly, DriveDream Motors will ensure its sales team is well-trained in customer service excellence. By providing outstanding service, the dealership aims to generate positive reviews and testimonials, further bolstering its reputation in the local market. Online reputation management will be a key focus, with the team actively responding to reviews and feedback to maintain a positive image.

Overall, DriveDream Motors will employ a multi-faceted promotional strategy that combines online marketing with traditional advertising, community engagement, and exceptional customer service. This approach will not only attract customers but also build a strong, loyal customer base in San Diego, CA.

Our Operations Plan details:

  • The key day-to-day processes that our business performs to serve our customers
  • The key business milestones that our company expects to accomplish as we grow

Key Operational Processes

To ensure the success of DriveDream Motors, there are several key day-to-day operational processes that we will perform.

  • Inventory Management: Regularly update and manage the inventory of cars, ensuring a diverse selection of vehicles that meet the needs and preferences of our customer base.
  • Customer Service: Provide exceptional customer service by greeting customers promptly, understanding their needs, and guiding them through the car selection process with expertise and empathy.
  • Sales Process: Conduct the sales process efficiently, from test drives to explaining financing options, ensuring a smooth and transparent experience for the customer.
  • Vehicle Maintenance: Perform regular maintenance and thorough inspections on all vehicles to ensure they are in excellent condition before sale.
  • Marketing and Promotions: Execute marketing strategies and promotions to attract new customers and retain existing ones, including social media campaigns, email marketing, and community events.
  • Financial Management: Monitor daily financial transactions, including sales, expenses, and profits, to ensure the dealership operates within its budget and achieves its financial goals.
  • Staff Training: Provide ongoing training and development for all staff members to enhance their product knowledge, sales techniques, and customer service skills.
  • Compliance: Ensure compliance with all local, state, and federal regulations related to car sales, including licensing and environmental regulations.
  • Feedback and Reviews: Encourage and collect customer feedback and online reviews to assess the dealership’s performance and identify areas for improvement.
  • Partnerships: Establish and maintain partnerships with local businesses, financial institutions, and car manufacturers to enhance the dealership’s offerings and reputation.

DriveDream Motors expects to complete the following milestones in the coming months in order to ensure its success:

  • Securing a Prime Location: Finalize the lease or purchase of a strategically located lot that is easily accessible, visible, and appealing to potential customers in San Diego, CA. This location should also provide ample space for displaying cars and customer parking.
  • Obtaining Licenses and Permits: Complete all necessary legal formalities to operate a car dealership in California, including obtaining a dealer’s license, a business license, and any other local permits required for operation.
  • Building and Showroom Setup: Design and set up an inviting showroom and customer service area. This includes purchasing or leasing office equipment, setting up IT infrastructure for inventory management, customer relationship management (CRM), and financial accounting systems.
  • Inventory Acquisition: Establish relationships with car manufacturers and/or used car suppliers to acquire a diverse and appealing inventory that meets the needs and preferences of the local market.
  • Staff Hiring and Training: Hire a skilled team, including sales personnel, finance officers, and service technicians. Provide them with comprehensive training to ensure high levels of customer service and knowledge about the cars being sold.
  • Marketing and Branding Efforts: Develop and implement a strong marketing plan to build brand awareness and attract customers. This should include digital marketing, local advertising, and hosting launch events to generate buzz in the community.
  • Launch Our Car Dealership: Officially open DriveDream Motors with a grand opening event aimed at generating sales leads and establishing relationships with potential customers in the community.
  • Establishing Service and Maintenance Offerings: Set up a service department to offer maintenance and repairs, which can provide an additional revenue stream and help build long-term customer relationships.
  • Achieving Sales Targets: Focus on reaching the initial revenue goal of $15,000/month. This involves closely monitoring sales activities, refining marketing strategies, and possibly adjusting inventory based on customer demand and feedback.
  • Customer Feedback and Continuous Improvement: Implement a system for collecting customer feedback and regularly review this feedback to make necessary adjustments to the business model, customer service, and inventory offerings. This continuous improvement will help in adapting to market changes and customer preferences, thereby reducing business risks.

DriveDream Motors management team, which includes the following members, has the experience and expertise to successfully execute on our business plan:

Isabella Lee, President

With a proven track record of leadership and achievements, Isabella Lee brings a wealth of experience to DriveDream Motors. Having previously managed a car dealership, Isabella possesses a deep understanding of the automotive sales industry, including market dynamics, customer relationship management, and operational efficiencies. Her hands-on experience in dealership management has equipped her with the insights necessary to drive sales, improve customer satisfaction, and navigate the complexities of the automotive market. Isabella’s leadership skills, combined with her ability to strategize and execute effectively, make her an invaluable asset to DriveDream Motors, positioning the company for long-term success and growth.

To realize our growth objectives, DriveDream Motors requires $925,000 in funding. This investment will be allocated towards capital improvements, including location buildout and the acquisition of essential equipment, and operational expenses such as inventory procurement, marketing initiatives, and staff salaries. This financial foundation is crucial for establishing our presence in the market, attracting a diverse customer base, and achieving our goal of becoming the leading car dealership in San Diego, CA.

Financial Statements

Balance sheet.

[insert balance sheet]

Income Statement

[insert income statement]

Cash Flow Statement

[insert cash flow statement]

Car Dealership Business Plan Example PDF

Download our Car Dealership Business Plan PDF here. This is a free car dealership business plan example to help you get started on your own car dealership plan.  

How to Finish Your Car Dealership Business Plan in 1 Day!

Don’t you wish there was a faster, easier way to finish your car dealership business plan?

With Growthink’s Ultimate Business Plan Template you can finish your plan in just 8 hours or less!

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Car Dealership Business Plan: Complete Guidance

  • January 11, 2023

Whether you’re searching to raise funding from confidential capital or to get a loan from a bank (like an SBA loan) for insert car offices, you determination needing to prepare a solid business plan. Title 29-A, §1051: Vehicle auction business-related allow

In this article we go through, step-by-step, all the different sections you need in your car distributor business plan. Use this template to create a complete, clearance and sound business plan that get him sponsored. This tips is perfect for those who plan on opening and auto auction business. Read these special before you begin your venue.

1. Executive Summary

The executive summary of a business plan gives a sneak peek of the information about your business plan to lenders and/or investors.

Is the information you provide here the not concise, informative, plus scannable, possible lenders and investors may lose interest.

Though the executive summary is the first and the most important section, is should normally be the last strecke you write because it will have the summary of different divisions included in the ganze businesses project lower. Motor Vehicle Wholesale Auction licence: A motor automotive large auction ... Please providing an operational businesses model; Hand attracted or computer-generated ...

Why take you need a business plan for your car dealership?

The goal concerning a business plan is to attach funding through one of the following channels:

  • Obtain bank sponsorship otherwise secure a loan from additional lenders (such as a SBA loan )
  • Secure private investments from capital funds, angel investors, etc.
  • Obtain adenine public or a private grant

How to write an leitendes summary for your car agent?

Provide a precise and high-level executive of any section that you have included in the business plot. The information real the data you include in this operating should grab the attention of potential investors and lenders direct. Also make sure is the executive overview doesn’t exceed 2 pages.

The leitender summary commonly consists the the 5 main paragraphs:

  • Business overview : introduce your passenger dealership: what is your business modeling (franchise to. independent business ; new vs. used car dealership), how lots cars will you have in inventory? Are you partnering in any car manufacturer(s)? Where would your store be located? Ect.
  • Market overview : briefly analysis the car dealership industry the thine area (market size and growth), your competitors and target customers: average income of your target audience, demographic distribution, buyer preferences eat.
  • Management & people : introduce to management team and their industry experience. Mention your business partner(s), if every. Also give here an overview starting the different teams, roles and their reporting lines
  • Financial layout : how much profit and generated do you expect in the next 5 years? When will you reach the break-even point press launch making profits? Furthermore include here a small chart with your key financials (revenue, net profit )
  • Funding ask : what loan/investment/grant are you seeking? What much do you necessity? Instructions extended will this last? How will you spend this money?

Your Dealership Financial Model

How one expert-built 5-year Excel financial model for to business plan

Passenger Dealership Financial Model

Read an expert-built 5-year Excel financial model for your business plan

2. Business Overview

In which economy overview section of your car dealership business plan, you should expand on what own company sells, to choose, and how it is structured. ONE few examples of questions you must answer here are:

  • The history behind the project: why performed you selected to get a car trade currently?
  • Your business prototype : Are they franchising or is this one separate store? Are thou selling new or used wheel?
  • Products & services : What vehicles / brands do you plan to sell? Are you planning to add any additional services (e.g. car repair & examinations, etc.)
  • What is the legal structure for your companies? Who are the directors / shareholders?

a) My off the Project

Briefly explain how did you come up with an plan to how a car dealership business. What motivated you to gain for this business venture? 

Also try to demonstrate up investing your interest and passion fork the car industry and cars agent by general.

For example, you might having worked in a car dealership and/or at a car manufacturer sales department in the past, and found immense growth potential for this type on shop by your area.

b) Business Model

Tell in diese section what business select you chose for your car dealership. Here are one few questions you must answer:

  • Will your start an independent dealership, franchise view, chain store, etc.?
  • Will you open one brand-specific dealership?
  • Would your car dealership store in latest motor, used cars, or both?
  • Perform you plan to open an online dealership?
  • Would you proffer service and repairs in your car dealership?

c) Products & Services

Now that we have briefly introduced what owner business print is, you must explain with detail what precis you intend to retail. There are 2 things here:

  • Choose (cars): about car and brands do you intend to sell? Reasons did you prefer these vehicles / trade?
  • Services : if thee offer additional services (e.g. passenger repairs, checkups), explain what they are

In addition the the products and services, thou should also include a list of prices for all. Of course, this doesn’t need to be accurate. Car prices fluctuate based to various factors. Yet, you must be able to providing a range of prices for each sort (e.g. stretch, lavishness cars, vans, etc.). Used Auto Sales Business Layout Example - Bplans

If you specialize in an specific brand, you could making a list of prices per model in appendix since well.

The prices are crucial as they will allow investors to tie your product offering with your financial projections later on.

d) Legal Structure

Explain the legal structure by your nursing home in this section. Are you starting a corporation, a limitation accountability company, or a partnership? Who are the investors? How much equity doing they actually own? Is there a board of directors? Do they have prior industry experience?

3. Car Dealership Market Overview

A complete understanding of the car dealership industry will critical by who success of your employment.

Therefore, you must cover here 3 important areas:

  • Status quo : how big is the car dealership industry in your area? How fast is the market growing? What are that trends fuelling all growth (or decline)?
  • Competition overview : how many automobile dealership competitors are there? Wherewith do it compare or. your business? How can you differentiate yourself by them?
  • Customer analysis: what are your targeting customers? What are their customer preferences?

a) Status quo

If looking by an car dealership industry, try toward start at the national level (US) and narrow it down to your service area (a city for example). You should answer 2 important answer here: ... vehicle auction business license authorizes business at the licensed premises only. The boundaries of the business are determined by the planned entered with ...

  • How big is the car dealership industry in your territory?
  • How faster belongs the car dealership industry growing into your area?

How big is the car department trade in the US?

The auto sections and car concession industries in the US is huge: it was worth $1.18 trillion in 2021 since per the Federal Aircraft Dealers Association . As per the same report, there had 16,676 light vehicles car dealerships in that COLUMBIA in 2021 where create an average revenue of $71 million.

Sales are divided between new (52%) and use vehicles (37%) as well as services and parts (11%).

How big is the car dealership industry in your section?

After the US, assess the size of the car wash industry in your choose or area. Focus on of sector where you plan go offer your services.

Naturally, you be did be abler to get the data used your specific city instead territory. Instead, your can estimate the size of your shop, for more information on how for do it, read our browse on how into estimate TAM, SAME and SOM on autochthonous startup .

Luckily, ZILCH publishes statistics per state so you can narrow it down easily. For your city instead, you will need to do work outward some estimates. To give you an example, let’s assume you plan to operate in an area where there are already 30 car dealership businesses (in a 25 miles radius on example).

Assuming ours business is based inbound Connected, we can use the state’s average annual turnover out $49,661 : person can inexpensive assume that the car dealership industry is worth $1.5 million in your area . Into other words, there are over 35,100 light automotive (new and used) being sold in your area each year (assuming the average merchandise price of $43,000).

How fast a the car dealership industry growing in your area?

Now that we know your area’s market size, let’s look at growth instead.

Fortunately, you can utilize NADA’s number again as they publish annual reports. Just use your state’s market size growth, and explain one growth (or decline). This can be due to mean car prices, or volume. Detect how Helm reshaped ACV Auctions into a analog auctioning director, streamlining the car trade for dealers and driving industry innovation.

b) Match overview

You should discuss both your direct and indirect competition inside your business plan. Other car find in the region will be your immediate competitors. Internet auctions, individual vendor, etc., will being your indirect competitors.  An auto auction service SWOT analysis should be produced like now. As it relates to strengths, automatic live services are almost always capability to remain profitable ...

Into this absatz, you should see discuss an essential components of the business models of will main competitors. Your research should be focused on they clientele, the kinds from cars they quote, plus their strengths and weaknesses. How Do I Get a Lizenz to Buy Cars the Video?

ONE thorough competitive analysis is crucial like it may allow it to discover and address a my require other preference that none of the rivals is addressing today.

Here are some from the questions this to must answer in this section:

  • How many competitors are there in to area where you what to open your car dealership?
  • Exist they franchises or independent stores?
  • Achieve they partner with specific car manufacturers?
  • What genre out cars do few offer (luxury, commercial, used, new, etc.)?
  • What is the average price range on the cars they sell?
  • How many employees make they have?
  • Do they offer services and repairs?
  • Do your competitors quotes buyback upon the cars sold the your previously to the client?
  • What type of offers and discounts do they offer up get customers?
  • What many cars / vehicles do handful sell on average each month?

c) Customer analysis

Now so we have a good idea of the car dealership industry at your area as well how competing, now your time to special on your targeting audience: customers.

Knowing your customer is extremely important before you get at any business. This is all the more relevancy for car concession where customer preferences the palates are very different. schedule your 10-year business plot. ... An example of an inward force is a miete car companies: how i decides on remarket its cars be impact the auction industry.

For example, are you are planning for get for a luxury your dealership business, it should look into:

  • The estimated population of high-income population in your area
  • Types of luxury cars that are in demand (hatchback, sedan, SUV, etc.)
  • Shopping preference on your targeting customers (online with offline)
  • How frequently do group purchase (or exchange) brand cars?
  • Has their buying decision influenced by offers or discounts?
  • What features do the target my want in their new luxury cars?
  • What artist of additional services do they expect from their traders?

Car Dealership Economic Prototype

Download an expert-built 5-year Excel financial model for your company plan

Automotive Dealership Financial Model

Downloads any expert-built 5-year Excellence financial model for the business plan

4. Sales & Marketing Strategy

Aforementioned a an section of your business plan show you outline your custom acquisition mission. Try to answer of following challenges:

  • Thing are the different marketing strategies you will use?
  • What are thine Unique Sale Points (USPs)? Inside other words, method do you decide from your competitors?
  • How done you intend to track the success of your marketing company?
  • What is your CAC or my acquisition cost?
  • Which is your marketing get?

What marketing channels does car dealerships use?

A few marketing channels that car dealership business typically use are:

  • Signage, billboards
  • PPC ads, Facebook ads, other.
  • Pressure media
  • Digital ads
  • Loyalty programs
  • Online local listing (Google Business)
  • Satisfied marketing (share topics like vehicle maintenance tips, safe driving tips, etc.) on platforms like blogs, socialize press, etc.
  • Talk of mouth, recommendations

To should possess a honest and about accurate estimate of your marketing budget. Therefore, make sure to budget for marketing correspond in to financial projections. For many of about, workaround those dealer markups and shopping a used motor at auction ourselves sounds like an better plan. And, once heading off on the nearest auction with a wad of cash are your pocket, it’s helpful to understand the different types regarding vehicle auctions, as well how the rules and requirements associated are each.

What are your Special Selling Propositions (USPs)?

In other words, how do you define them vs. competitors? Dieser is very important as you might need toward win customers from candidates.

A few examples of USPs been:

  • Products: thee may be the exclusive distributor instead a car make in your region for example
  • Professional : you may offer repairs or regular checkups for your your
  • Location : you store is closer to a busy road and/or to where yours customers live

Your USPs will depend on your business print, competitor analysis, and target public. Whatever your USPs represent, e should appeal to your potential customers and attract them.

5. Management & People

You must address 2 things here:

  • The management team and her experience/track file
  • The organizational structuring: the different team elements and who reports to whom

Supervision

Small businesses often fail because of managerial weaknesses. Thus, having an strong executive team the vital. Highlight the my and education of seniors managers ensure you want to rental to oversee your car dealership.

Label their duties, responsibilities, and castings. Also, accentuate their previous experience and explain how they succeeded in their previous roles.

Arrangement Structure

Evened are you haven’t already hired a VP of sales, achieved managers, support employee and any different relevant staff members, you must supply a chart of who organizational structure outlining the different teams, parts and their coverage lines.

6. Financial Plan

The financial plan is perhaps, with the board summary, the most important section is any business plan.

Indeed, a solid financial plan tells lenders that your business is viable and can repay the mortgage you need from them. If you’re looking to raise equity from private investors, a solid financial plan will detect them your car department is an attractive investing.

There have be 3 sections to your financial planner unterabschnitt:

  • Your historical financials (only if you already operate the business and have financial accounts to show)
  • The startup costs of your project (if you plan to start a new car dealership, or acquire new inventory, expand your store, etc.)
  • The 5-year financial projections

a) Historical Financials (if any)

To the scenario where you already have einige historical financials (a few quarters or a few years), include them. A summary about your financial statements at the form off graphical e.g. revenue, gross profit also bag profit is enough, save the resting for the appendix. So many options to buy a car presently! Car dealer, classic and online auctions. Which one to choice?

If her don’t have any, don’t worry, most new businesses don’t have any historical financials and that’s okay. If so, jump to Startup Costs instead.

b) Startup Expense

Before wee expand to 5-year financial projections within of followed section, it’s always optimal practice to start with directory an startup fees of your project. On a car dealership, startup costs are all the expenses you enter from she open your shop also beginning manufacturing sales. These expenses generally are:

  • The lease deposit for the commercial space you rent (if you don’t buy it)
  • The design the renovation of the existing facilities
  • The inventory costs (the initial stock starting vehicles you must buy toward alienate them at opening)

Used example, let’s assume you want toward buy 30 light vehicles as a start for record, and you taking on a take where you need to put go 15% upfront. Now, assuming that rolling each cost $50,000 on ordinary, that means you must put down $300,000 yourself. This comes in addition about optional other startup cost mentioned foregoing (lease submit, renovation costs, etc.).

Car Dealership Financial Model

Download an expert-built 5-year Exceed financial model for thy business plan

Car Dealership Fiscal Model

Transfer an expert-built 5-year Excel financial model for your work plan

c) 5-Year Financial Projections

In addition to startup expense, you will get need to build an solid 5-year financial model as part of your business plan for your car dealership.

Your financial projections should be constructed using a spreadsheet (e.g. Excel or Google Sheets) and presented into the form of tables additionally charts in your business plan.

As habitually, keep it concise here and save details (for example detailed financial statements, financial performance, key assumptions used used the projections) for and supplement instead.

Your monetary projections should answered at least the tracking questions:

  • How much turnover accomplish they expect to compose pass the next 5 years?
  • When do you awaiting to break even?
  • How much cash intention you burn until you get there?
  • What’s this impact of a alter in price (say 20%) off your margins?
  • What are your average customer acquisition cost?

You should include here their 3 financial statement (income make, balance sheet the cash flow statement). This means you be forecast:

  • The batch of transport you sell over time ;
  • Your expected revenue ;
  • Operating fee to run the business ;
  • Any other currency flow items (e.g. capex, debt repayment, etc.).

When projecting your revenue, make sure to sensitize price real the number in customers as a small change inches these assumptions will have one big impact on you revenues. Dealer and Wholesaler (Motor Vehicle & Powersports) - Motorcar ...

7. Financing Ask

This is the last section of the business set of your car department. Now that we have explained what type of mobile your company sells to whom and at what price, but also what’s thine marketing strategy, where you go additionally how you get there, this section must reply the following questions:

  • How much funding do you need?
  • What financial instrument(s) do you what: the such equity press debt, or even a free-money public grant?
  • How long will this funding last?
  • Where else does the money come from? If yours apply for a SBA loan for example, where does the other part of the equity come from (your own capital, residential investors?)

If you raise debt:

  • Whatever part of the total funding the loan represents?
  • What exists the corresponding Debt Service Coverage Ratio ?

If you raise equity

  • What percentage ownership are you selling as part of this funding round?
  • What is the corresponding valuation of the business?

Use of Capital

Random business layout should include a clean use of funds section. Save is location you explains how the money will be spent.

Will you spends majority of which home / investment to acquire the cost for who item (the vehicles)? Or will it cover mostly the cost of buying the land and building of store? AUCTION OF FUTURE: 2027

Those are very important questions you should subsist proficient toward answer in and blink of an eye. Don’t worry, this should come straight by your financial hochrechnung. If you’ve built solid projections like to unser car dealership financial model template , you won’t have any issues answering these questions.

With the use of money, we recommend using a pie table like the one we have for our financial model template where we outline the main expenses categories as shown below. Online Car Auction: how to start? | Merkeleon Software

Download an expert-built 5-year Excel financial model on your business plan

Car Store Financial Model

Free an expert-built 5-year Excel financial model for your shop create

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car auction business plan

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Free business plan template (with examples)

Alan Bradley

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“Verified by an expert” means that this article has been thoroughly reviewed and evaluated for accuracy.

Updated 3:37 a.m. UTC Feb. 12, 2024

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Featured Image

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Starting a business can be a daunting undertaking. As with so many large projects, one of the most difficult challenges is just getting started, and one of the best ways to start is by putting together a plan. A plan is also a powerful tool for communication and can serve as a cornerstone for onboarding new partners and employees or for demonstrating your philosophy and priorities to potential collaborators. 

A solid business plan will not only provide a framework for your business going forward but will also give you an early opportunity to organize and refine your thoughts and define your mission statement, providing a guidepost that can serve as a beacon for your business for years to come. We’ve provided a business plan template below to help guide you in the creation of your new enterprise.

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Business plan template

What should a business plan include?

Regardless of the type of business you own or the products and services you provide, every business plan should include some core elements:

  • Mission statement. The definition and executive summary of your business.
  • Market analysis. A breakdown of the market segment and customers you hope to reach, built through primary (gathered by you) and secondary (gathered from outside sources) research.
  • Organization and logistics. The nuts and bolts of how your business is operated
  • Products or services. What your company provides its customers.
  • Advertising and marketing. How you intend to get your products in front of your customers.
  • Forecasting. Revenue forecasting for partners or potential investors.

Why do you need a business plan?

A business plan is a framework for success. It provides a number of key benefits:

  • Structure. The outline around which to design your business.
  • Operational guidance. A signpost for how to run your business from day to day.
  • Expansion. A vision for the future growth of your enterprise.
  • Definition. A platform to consider every element of your business and how best to execute your plans for them.
  • Collaboration. A synopsis of what’s exceptional about your business and a way to attract funding, investment or partnerships.
  • Onboarding. An efficient summary of your business for new or potential employees.

Business plan examples

We’ve created two fictional companies to illustrate how a business might use a business plan to sketch out goals and opportunities as well as forecast revenue.

Bling, Incorporated

Our first hypothetical example is a jewelry and accessory creator called Bling, Incorporated. A hybrid business that manufactures its products for sale both online and through physical retail channels, Bling’s mission statement is focused on transforming simple, inexpensive ingredients into wearable statement pieces of art. 

Market analysis includes gathering data around sourcing sustainable, inexpensive components, aesthetic trends in fashion and on which platforms competitors have had success in advertising jewelry to prospective customers. Logistics include shipping products, negotiating with retailers, establishing an e-commerce presence and material and manufacturing costs. 

Bling, Incorporated advertises initially through social platforms like TikTok and Facebook, as well as with Google AdSense, with plans to eventually expand to television advertising. Revenue forecasting is structured around a low overhead on the basis of inexpensive materials, no dedicated storefront and broad reach through digital platforms.

Phaeton Custom Cars

Phaeton is a custom car builder and classic car restoration business with a regional focus and reach. Its mission statement defines it as a local, family-owned business serving a community of auto enthusiasts and a broader regional niche of collectors. 

Market analysis breaks down the location and facilities of other competitor shops in the region as well as online communities of regional car enthusiasts likely to spend money on custom modifications or restoration projects. It also examines trends in valuations for custom parts and vintage cars. Logistics include pricing out parts and labor, finding skilled or apprentice laborers and mortgaging a garage and equipment. 

Phaeton advertises in regional publications, at local events and regional car shows and online through Facebook and Instagram, with an emphasis on a social presence highlighting their flashiest builds. Revenue forecasting is built around a growing reputation and high-value commissions.

Frequently asked questions (FAQs)

A business plan may not be a prerequisite for every type of business, but there are few businesses that wouldn’t benefit from one. It can serve as an important strategic tool and help crystalize a vision of your business and its future.

Business plans do just that: they help you plan the future of your business, serve as a platform to brainstorm ideas and think through your vision and are a great tool for showcasing why your business works to potential investors or partners.

Blueprint is an independent publisher and comparison service, not an investment advisor. The information provided is for educational purposes only and we encourage you to seek personalized advice from qualified professionals regarding specific financial decisions. Past performance is not indicative of future results.

Blueprint has an advertiser disclosure policy . The opinions, analyses, reviews or recommendations expressed in this article are those of the Blueprint editorial staff alone. Blueprint adheres to strict editorial integrity standards. The information is accurate as of the publish date, but always check the provider’s website for the most current information.

Alan Bradley

Alan is an experienced culture and tech writer with a background in newspaper reporting. His work has appeared in Rolling Stone, Paste Magazine, The Escapist, PC Mag, PC Gamer, and a multitude of other outlets. He has over twenty years of experience as a journalist and editor and is the author of the urban fantasy novel The Sixth Borough.

Sierra Campbell is a small business editor for USA Today Blueprint. She specializes in writing, editing and fact-checking content centered around helping businesses. She has worked as a digital content and show producer for several local TV stations, an editor for U.S. News & World Report and a freelance writer and editor for many companies. Sierra prides herself in delivering accurate and up-to-date information to readers. Her expertise includes credit card processing companies, e-commerce platforms, payroll software, accounting software and virtual private networks (VPNs). She also owns Editing by Sierra, where she offers editing services to writers of all backgrounds, including self-published and traditionally published authors.

How to start a small business: A step-by-step guide

How to start a small business: A step-by-step guide

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  • Roughly 110 mi from Moscow City Centre, Ryazan is a must-do for many road-trippers. With attractions like Monument to Evpatiy Kolovrat, there’s no shortage of things to see and do here.
  • Around 110 mi away, Vladimir is another city worthy of a place on your road trip itinerary. Be sure to check out Vladimir Central Prison while you’re in town.
  • After all that driving, treat yourself to some time out in nature at Pavilion of Ostrovsky. It’s approximately 190 mi from Moscow City Centre.

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CDC plans to drop five-day covid isolation guidelines

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Americans who test positive for the coronavirus no longer need to routinely stay home from work and school for five days under new guidance planned by the Centers for Disease Control and Prevention.

The agency is loosening its covid isolation recommendations for the first time since 2021 to align it with guidance on how to avoid transmitting flu and RSV, according to four agency officials and an expert familiar with the discussions.

CDC officials acknowledged in internal discussions and in a briefing last week with state health officials how much the covid-19 landscape has changed since the virus emerged four years ago, killing nearly 1.2 million people in the United States and shuttering businesses and schools. The new reality — with most people having developed a level of immunity to the virus because of prior infection or vaccination — warrants a shift to a more practical approach, experts and health officials say.

“Public health has to be realistic,” said Michael T. Osterholm, an infectious-disease expert at the University of Minnesota. “In making recommendations to the public today, we have to try to get the most out of what people are willing to do. … You can be absolutely right in the science and yet accomplish nothing because no one will listen to you.”

The CDC plans to recommend that people who test positive for the coronavirus use clinical symptoms to determine when to end isolation. Under the new approach, people would no longer need to stay home if they have been fever-free for at least 24 hours without the aid of medication and their symptoms are mild and improving, according to three agency officials who spoke on the condition of anonymity to share internal discussions.

Here is the current CDC guidance on isolation and precautions for people with covid-19

The federal recommendations follow similar moves by Oregon and California . The White House has yet to sign off on the guidance that the agency is expected to release in April for public feedback, officials said. One agency official said the timing could “move around a bit” until the guidance is finalized.

Work on revising isolation guidance has been underway since last August but was paused in the fall as covid cases rose. CDC director Mandy Cohen sent staff a memo in January that listed “Pan-resp guidance-April” as a bullet point for the agency’s 2024 priorities.

Officials said they recognized the need to give the public more practical guidelines for covid-19, acknowledging that few people are following isolation guidance that hasn’t been updated since December 2021. Back then, health officials cut the recommended isolation period for people with asymptomatic coronavirus from 10 days to five because they worried essential services would be hobbled as the highly transmissible omicron variant sent infections surging. The decision was hailed by business groups and slammed by some union leaders and health experts.

Covid is here to stay. How will we know when it stops being special?

The plan to further loosen isolation guidance when the science around infectiousness has not changed is likely to prompt strong negative reaction from vulnerable groups, including people older than 65, those with weak immune systems and long-covid patients, CDC officials and experts said.

Doing so “sweeps this serious illness under the rug,” said Lara Jirmanus, a clinical instructor at Harvard Medical School and a member of the People’s CDC, a coalition of health-care workers, scientists and advocates focused on reducing the harmful effects of covid-19.

Public health officials should treat covid differently from other respiratory viruses, she said, because it’s deadlier than the flu and increases the risk of developing long-term complications . As many as 7 percent of Americans report having suffered from a slew of lingering covid symptoms, including fatigue, difficulty breathing, brain fog, joint pain and ongoing loss of taste and smell, according to the CDC.

The new isolation recommendations would not apply to hospitals and other health-care settings with more vulnerable populations, CDC officials said.

While the coronavirus continues to cause serious illness, especially among the most vulnerable people, vaccines and effective treatments such as Paxlovid are available. The latest versions of coronavirus vaccines were 54 percent effective at preventing symptomatic infection in adults, according to data released Feb. 1, the first U.S. study to assess how well the shots work against the most recent coronavirus variant. But CDC data shows only 22 percent of adults and 12 percent of children had received the updated vaccine as of Feb. 9, despite data showing the vaccines provide robust protection against serious illness .

Coronavirus levels in wastewater i ndicate that symptomatic and asymptomatic infections remain high. About 20,000 people are still hospitalized — and about 2,300 are dying — every week, CDC data show. But the numbers are falling and are much lower than when deaths peaked in January 2021 when almost 26,000 people died of covid each week and about 115,000 were hospitalized.

The lower rates of hospitalizations were among the reasons California shortened its five-day isolation recommendation last month , urging people to stay home until they are fever-free for 24 hours and their symptoms are mild and improving. Oregon made a similar move last May.

California’s state epidemiologist Erica Pan said the societal disruptions that resulted from strict isolation guidelines also helped spur the change. Workers without sick leave and those who can’t work from home if they or their children test positive and are required to isolate bore a disproportionate burden. Strict isolation requirements can act as a disincentive to test when testing should be encouraged so people at risk for serious illness can get treatment, she said.

Giving people symptom-based guidance, similar to what is already recommended for flu, is a better way to prioritize those most at risk and balance the potential for disruptive impacts on schools and workplaces, Pan said. After Oregon made its change, the state has not experienced any disproportionate increases in community transmission or severity, according to data shared last month with the national association representing state health officials.

California still recommends people with covid wear masks indoors when they are around others for 10 days after testing positive — even if they have no symptoms — or becoming sick. “You may remove your mask sooner than 10 days if you have two sequential negative tests at least one day apart,” the California guidance states.

It’s not clear whether the updated CDC guidance will continue to recommend masking for 10 days.

Health officials from other states told the CDC last week that they are already moving toward isolation guidelines that would treat the coronavirus the same as flu and RSV, with additional precautions for people at high risk, said Anne Zink, an emergency room physician and Alaska’s chief medical officer.

Many other countries, including the United Kingdom, Denmark, Finland, Norway and Australia, made changes to isolation recommendations in 2022. Of 16 countries whose policies California officials reviewed, only Germany and Ireland still recommend isolation for five days, according to a presentation the California public health department gave health officials from other states in January. The Singapore ministry of health, in updated guidance late last year, said residents could “return to normal activities” once coronavirus symptoms resolve.

Even before the Biden administration ended the public health emergency last May, much of the public had moved on from covid-19, with many people having long given up testing and masking, much less isolating when they come down with covid symptoms.

Doctors say the best way for sick people to protect their communities is to mask or avoid unnecessary trips outside the home.

“You see a lot of people with symptoms — you don’t know if they have covid or influenza or RSV — but in all three of those cases, they probably shouldn’t be at Target, coughing, and looking sick,” said Eli Perencevich, an internal medicine professor at the University of Iowa.

Coronavirus: What you need to know

New covid variant: The United States is in the throes of another covid-19 uptick and coronavirus samples detected in wastewater suggests infections could be as rampant as they were last winter. JN.1, the new dominant variant , appears to be especially adept at infecting those who have been vaccinated or previously infected. Here’s how this covid surge compares with earlier spikes .

Covid ER visits rise: Covid-19, flu and RSV are rebounding in the United States ahead of the end-of-year holidays, with emergency room visits for the three respiratory viruses collectively reaching their highest levels since February.

New coronavirus booster: The Centers for Disease Control and Prevention recommends that anyone 6 months or older get an updated coronavirus shot , but the vaccine rollout has seen some hiccups , especially for children . Here’s what you need to know about the new coronavirus vaccines , including when you should get it.

  • CDC plans to drop five-day covid isolation guidelines February 13, 2024 CDC plans to drop five-day covid isolation guidelines February 13, 2024
  • Is this covid surge really the second biggest? Here’s what data shows. January 12, 2024 Is this covid surge really the second biggest? Here’s what data shows. January 12, 2024
  • Covid kills nearly 10,000 in a month as holidays fuel spread, WHO says January 11, 2024 Covid kills nearly 10,000 in a month as holidays fuel spread, WHO says January 11, 2024

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Plume of black smoke rose into the air as the aircraft collided with traffic on Interstate 75 in south-west Florida.

Two people killed after small private jet plane crash-lands on Florida highway

Bombardier Challenger 600, carrying five people, ‘pulverized’ a car and slammed into a wall, scattering pieces of it across interstate

Two people have died after a small private jet plane attempted to make an emergency landing on Interstate 75 in south-west Florida on Friday afternoon, colliding with two vehicles and bringing traffic to a halt as a plume of black smoke rose into the air.

The crash landing happened near the Pine Ridge Road exit in Collier county, just north of where the interstate heads east toward Fort Lauderdale along what is known as Alligator Alley.

It occurred moments after the crashed jet’s pilots told an airport traffic controller that the plane “was not going to make the runway” after losing both engines, the Associated Press reported, citing audio the news outlet obtained.

Brianna Walker saw the wing of the plane drag the car in front of hers and slam into a wall.

“It’s seconds that separated us from the car in front of us,” she said. “The wing pulverized this one car.”

Walker and her friend spotted the plane moments before it hit the highway, allowing her friend to pull over before the crash.

“The plane was over our heads by inches,” she said. “It took a hard right and skid across the highway.”

Walker said an explosion of flames then burst from the plane with a loud boom. Pieces of the plane littered the highway.

“It feels unreal, like a movie,” she said. “It was seconds between us dying.”

Florida highway patrol said the plane also struck a pickup truck on the highway.

The Federal Aviation Administration identified the aircraft as a Bombardier Challenger 600 jet and said five people had been aboard when the crash happened around 3.15pm local time.

The plane had taken off from an airport at Ohio State University in Columbus, Ohio, at about 1pm and was scheduled to land in Naples around the time of the crash, said Robin King, the Naples airport authority spokesperson.

A pilot had contacted the tower requesting an emergency landing, saying they had lost both engines. The tower lost contact and then airport workers saw the smoke from the interstate just a few miles away.

King said they sent fire trucks with special foam to the scene and three of the five people on board were taken from the wreckage alive.

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Adam Fisher, a Collier county sheriff’s office spokesperson, confirmed two deaths, but said he didn’t immediately know whether the victims had been passengers on the plane or had been on the ground.

Molly Best, a highway patrol spokesperson, said three people from the plane had survived and two other people had been killed. But she declined to specify whether the two fatalities were from the plane or the vehicles involved, saying next of kin were still being notified.

According to the FlightAware.com aircraft tracker, the plane was operated by Hop-a-Jet Worldwide Charter based in Fort Lauderdale, Florida. The aircraft had been scheduled to fly back to Fort Lauderdale Friday afternoon. Hop-a-Jet did not immediately respond to an email and phone message seeking comment.

A spokesperson for Ohio State University said the aircraft was not affiliated with the university and they had no further information about it.

The FAA and the National Transportation Safety Board will determine precisely why the jet made an emergency landing on the interstate at the time of the crash, with the NTSB leading the investigation. One NTSB investigator arrived at the crash site Friday afternoon, with several more expected to arrive on Saturday. They will document the scene and examine the aircraft, which will then be taken to a secure facility for further evaluation. A preliminary report about the cause of the crash can be expected in 30 days.

Among the evidence that investigators had started looking at by Saturday were the communications between the plane’s pilot and the air traffic controller at the Naples airport.

“We’re clear to land but we’re not gonna make the runway,” the pilot said on a recording of the communications, according to the AP. “We’ve lost both engines.”

The Florida highway patrol said in a news release that the southbound lanes of the interstate had been closed and advised motorists to seek alternate routes.

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Moscow-City – The Moscow International Business Center

  • 3 years ago

The Moscow Intenational Business Center

Moscow-City is an iconic location for life and work in Russia’s capital. Enormous skyscrapers, business centers, the best restaurants and retail spaces – all this is concentrated in one place. The ultramodern Moscow-City towers are truly striking in their outward appearance, and the layout of the apartments inside and the fantastic views that can be seen from the higher floors are nothing short of impressive.

This skyscraper compound, often referred to as Moskva-City, is the Russian take on Manhattan, where businessmen strike multi-million dollar deals daily while ordinary life goes on next door. Its state of the art spaces offer the ultimate convenience. The infrastructure of this business district is so well-developed that anyone can find something interesting for themselves here: from residential apartments to boutiques, clubs, exhibitions and more.

When the foundations for the Moscow-City skyscrapers were laid, a special kind of concrete was used, the properties of which are amplified by many times compared to standard concrete. Even in the event of a plane crashing into one of the buildings, the structural integrity of the towers will be preserved.

The architects of the Moscow-City Business Center have created a unique locality that has integrated into itself the hub of the capital’s business life and a whole ensemble of historical monuments. Anyone can admire the beauty of these skyscrapers from within or without the compound. There are also a number of apartments for sale or rent available in the MIBC itself. But first, let’s have a look at some more interesting facts about the financial core of Russia’s capital.

  • 1 How It All Began
  • 2.1 Moscow-City Central Core
  • 2.2 Tower 2000
  • 2.3 Evolution Tower
  • 2.4 Imperia Tower
  • 2.5 Moscow Tower and St. Petersburg Tower
  • 2.6 Steel Peak Tower
  • 2.7 Federation Tower
  • 2.8 Mercury City Tower
  • 2.9 OKO Tower Complex
  • 3.1 Afimall City Shopping Center
  • 3.2 Bagration Bridge
  • 3.3 Expocentre Fairgrounds
  • 4 Renting and Buying Real Estate in Moscow-City

How It All Began

The history of Moscow-City goes all the way back to 1992. The government of Moscow at the time wanted to bring into existence its own skyscrapers like the ones in London or New York. And the idea caught on. In 1992 the project for the construction of the huge “Moscow-City” MIBC compound was enthusiastically approved, kick-starting the painstaking preparatory works. The original intention was that the skyscrapers would only house office space. However, as time went on, the towers began to welcome in ordinary residents who wanted to live on the territory of this business and finance hub.

Moscow-City is undoubtedly a city within a city. Its grandeur is mind-boggling. It is perfect in every way: from location to infrastructure. And today, anyone can get a feel of the atmosphere of the “capital city” of Russia’s business world – many of the apartments in Moscow-City are available for rent. Any citizen of Russia and even nationals of other countries can make use of these offers.

What It’s Like in 2021

Today Moscow-City is not just a magnificent and fascinating sight, but also a real hub for the work, life and leisure of thousands. Its infrastructure is organized in such a way that there is no need to leave the territory of the “city within a city” at all. This business district contains everything one may need for work and recreation. And if one does decide to venture out into the larger metropolis, the MIBC’s three subway stations make this remarkably simple to do.

Moscow-City stands on the Presnenskaya Embankment . Each of the buildings in the district has a name, which simplifies its identification. Some of the buildings form complexes that are united under one name, such as the Neva Towers and the Naberezhnaya Tower complex of two skyscrapers and one high rise. There are a total of 16 towers in the MIBC, of which the most popular are:

  • Moscow-City Central Core;
  • Tower 2000;
  • Evolution Tower;
  • Imperia Tower;
  • City of Capitals (Moscow Tower and St. Petersburg Tower);
  • Steel Peak Tower;
  • Federation Tower;
  • Mercury City Tower;
  • OKO Tower Complex.

Moscow-City Central Core

This is the most complex building within the MIBC compound. Its total floor area is a whopping 1 476 378 sqft (450 000 m²). It consists of two massive parts, each of which boasts a truly impressive infrastructure. The underground part includes 3 Moscow Metro stations, a parking lot for automobiles and a shopping mall. The aboveground part houses a concert hall and a hotel.

Tower 2000 is a skyscraper having 34 stories. Its total floor area is 200 318 sqft (61 057 m²), most of which is office space. The key feature of this skyscraper is its direct connection to the Bagration Bridge, which has its own shopping arcade. The tower has everything one may need while working here, including a large parking lot and several restaurants.

Evolution Tower

This elegant structure is 836 feet (255 m) high – that’s a whole 54 stories! The total floor area here is 554 462 sqft (169 000 m²). The Evolution Tower’s key feature is that it has its own Wedding Hall. This skyscraper houses large office spaces, a parking lot and several restaurants.

Imperia Tower

MIBC’s Imperia Tower is the undeniable focal point of the MIBC’s business life. Its height is 784 feet (239 m), which means one can hold conferences and resolve key business matters on the 59 th floor! And that really is amazing! The tower has everything: offices, hotels, restaurants and parking lots. But if you want a truly unforgettable experience, visit the viewing platform! It is situated on the 58 th floor and a simply astounding view of Moscow can be seen from it.

Moscow Tower and St. Petersburg Tower

The Moscow and St. Petersburg Towers are the chief representatives of the MIBC. The Moscow Tower has 76 stories and is 990 feet (302 m) high, while the St. Petersburg Tower has 65 stories and stands 843 feet (257 m) tall. Both towers offer fantastic views of the capital city.

Most of the floors of these two skyscrapers are taken up by luxurious sky apartments. There are also several recreational and entertainment centers, office spaces, restaurants, etc.

Steel Peak Tower

Also known as the Eurasia Tower of Moscow-City, this supertall skyscraper has a total of 680 912 sqft (207 542 m²) of floor space. Most of this is taken up by offices, and the rest – by residential quarters (around 65 616 sqft or 20 000 m²). The tower also houses a number of the greatest restaurants, studios and shopping centers.

Federation Tower

The Federation Tower is a complex of two skyscrapers, known as Tower East and Tower West. Tower East is the second highest building in Europe (the first is a skyscraper recently erected in the city of St. Petersburg). Its height is a colossal 1 223 feet (373 m) and that makes 95 stories! Tower West, on the other hand, is noticeably shorter at 794 feet (242 m).

The Federation Tower is a multifunctional complex.

Mercury City Tower

The Mercury City Tower skyscraper is widely known as one of the tallest buildings in Europe. Its height is 1 112 feet (339 m) and it has 75 stories. It is multifunctional by concept, holding within its walls shopping centers, offices and all kinds of other spaces. It is also possible to rent apartments here.

OKO Tower Complex

The OKO Tower Complex consists of two towers – the North Tower (49 stories and 803 ft or 245 m in height) and the South Tower (85 stories and 1 155 ft or 352 m in height).

Each of the MIBC’s tower complexes has its own recreational and entertainment areas, restaurants and parking lots. The top floors of most of these buildings contain luxurious fully-furnished apartments. At night, the towers shine with bright lights, while inside them the panoramic windows reveal astounding views of Moscow. This breathtaking view of the capital of Russia is why visiting Moscow-City is a must!

What Not to Miss

There are many interesting landmarks within the Moscow-City compound, but three of them are truly deserving of special attention:

  • The Afimall City Shopping Center;
  • The Bagration Bridge with two galleries and a shopping arcade;
  • The Expocentre Fairgrounds.

Afimall City Shopping Center

The Afimall City Shopping and Entertainment Center is located in Moscow-City’s Central Core. It is divided into 4 zones, each with its own theme – one for every season of the year. The shopping center houses the biggest indoor fountain found worldwide. The height of this watery wonder is 118 feet or 36 meters.

The shopping and entertainment center contains everything one might expect from one of the largest centers of its kind:

  • Retail brand stores;
  • Exhibitions;
  • Game rooms;
  • and Restaurants.

The main recreational space is roofed with a giant transparent dome, which is an impressive sight to behold.

Bagration Bridge

Bagration Bridge with its upper and lower galleries has a shopping center all of its own and was the first structure to be built as part of the Moscow-City business district. Its lower gallery is a shopping arcade and its upper gallery is an open-air viewing platform with a spectacular view of the MIBC and the Moskva River. The hall of the bridge houses the 23 foot tall sculpture called “Tree of Life”. Having gone through the bridge via either one of its two galleries, a pedestrian would find themselves standing right on the Kutuzovsky Prospekt.

Expocentre Fairgrounds

The Expocentre Fairgrounds exhibition venue is located at the very heart of the capital. The first exhibition held at the Expocentre happened all the way back in 1959, much earlier than the MIBC was erected. Today it is the venue of many interesting events.

Exhibitions with very diverse themes are regularly held at this complex. An up-to-date schedule can be found on the official webpage of the Expocentre. The events can be free or fixed-price entry, depending on their type.

Renting and Buying Real Estate in Moscow-City

Moscow-City is not only a work and business hub, but also a residential neighborhood. Any citizen of Russia can rent or buy apartments or elite sky lounges here. The variety of residential real estate available inside the skyscrapers is impressive, including options for any pocket. The following buildings in the MIBC contain residential blocks:

This skyscraper has a mirror glass façade which reflects the passing clouds. Just imagine how beautiful that looks! Anyone can buy an apartment in the Federation Tower. Such properties are not only a good investment, but also a mark of prestige. The average price of residential real estate here is 45 million rubles for an apartment with a total floor area of 334 sqft (102 m²). The average price of a square meter (3.28 square feet) is in the range of 650 to 700 thousand rubles. There are two- and three-room apartments available in the Federation Tower, each with its own loggia. As for rent, the minimum price of one month’s stay in a three-room apartment in this skyscraper is 300 000 rubles per month.

The Mercury City Tower skyscraper welcomes citizens from all parts of Russia. This building is no less tall than the world-famous Dubai skyscrapers. Living in its apartments is a delight. The minimum cost of an apartment in the Mercury City Tower is 75 million rubles. The average price of a square meter (3.28 square feet) is 800 thousand rubles. And for those looking for a lower price point, some of the properties are also available for rent – in this case you will pay a minimum of 250 thousand rubles per month.

The Imperia Tower is a key cluster of interesting offers. The best options for buying and renting apartments within the MIBC can all be found in this skyscraper. The lowest price of a residential apartment here is 40 million rubles. A square meter (3.28 square feet) in a luxurious apartment in the Imperia Tower currently costs 600 thousand rubles, while the price range of the listings available for rent in this skyscraper is from 350 thousand all the way up to 1 million rubles per month.

This complex, standing on a faceted or “crystal” base, is an architectural engineering project boasting spectacular design. Behind its impressive façades is an abundance of penthouses and apartments having floor areas in the range of 262 sqft (80 m²) to 984 sqft (300 m²). The minimum price of an apartment in the OKO Tower Complex is 40 million rubles (the price of a square meter (3.28 square feet) is 500 thousand rubles). You can rent an apartment here starting from 400 thousand rubles per month.

City of Capitals

The City of Capitals is an exemplary architectural complex. Its sum appearance gives the impression of a huge city. Inside its walls are spacious apartments available for purchase and rent. This complex is considered to be especially prestigious. The prices of apartments here start from 50 million rubles, while the minimum cost of renting is 400 thousand rubles per month.

Please note! The price of real estate available for purchase or rent depends on: the tower, the floor, the total floor area, the furnishings and/or interior design, and other factors.

The key advantages of buying/purchasing real estate in Moscow-City are:

  • Favorable location;
  • Convenient transportation links;
  • Well-developed infrastructure;
  • High safety level;
  • Efficient architecture;
  • Panoramic windows.

Buying real estate in Moscow-City is very much a rational decision, most appealing to those who value the ultimate level of comfort. The residential apartments here boast impressive interior design solutions executed in the contemporary style.

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Date night strike: Thousands of US, UK delivery, ride-hailing drivers stop work on Valentine’s Day

Dozens of ride-hailing workers participated in a strike on Valentine’s Day at O’Hare Airport, calling for higher pay and better working conditions. (Feb. 14)

People protest ride-hailing companies like Uber, Lyft and others in the Transportation Network Provider parking lot at O'Hare International Airport, Wednesday, Feb. 14, 2024, in Chicago. (AP Photo/Erin Hooley)

People protest ride-hailing companies like Uber, Lyft and others in the Transportation Network Provider parking lot at O’Hare International Airport, Wednesday, Feb. 14, 2024, in Chicago. (AP Photo/Erin Hooley)

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Ride-share drivers protest near Orlando International Airport at Airport Lakes Park, Wednesday, Feb. 14, 2024, in Orlando, Fla. Thousands of ride-hailing and delivery workers in the U.S. and the U.K. went on strike on Valentine’s Day, calling for higher pay and other changes to their working conditions. (Joe Burbank/Orlando Sentinel via AP)

People wait in the ride-hailing pickup area at O’Hare International Airport, Wednesday, Feb. 14, 2024, in Chicago. Ride-hailing workers were protesting companies like Uber and Lyft across the country Wednesday, demanding better wages and safer working conditions. (AP Photo/Erin Hooley)

People wait in the ride-hailing pickup area at O’Hare International Airport, Wednesday, Feb. 14, 2024, in Chicago. ride-hailing and delivery workers were protesting companies like Uber and Lyft across the country Wednesday, demanding better wages and safer working conditions. (AP Photo/Erin Hooley)

Carmen Peralta joins other ride-hailing and delivery workers in protest of Uber, Lyft and other companies in the Transportation Network Provider parking lot at O’Hare International Airport, Wednesday, Feb. 14, 2024, in Chicago. (AP Photo/Erin Hooley)

An authorization sticker is displayed on a vehicle in the Transportation Network Provider parking lot at O’Hare International Airport, Wednesday, Feb. 14, 2024, in Chicago. Ride-hailing and delivery workers were protesting companies like Uber and Lyft across the country Wednesday, demanding better wages and safer working conditions. (AP Photo/Erin Hooley)

Rideshare vehicles are parked in the Transportation Network Provider parking lot at O’Hare International Airport, Wednesday, Feb. 14, 2024, in Chicago. Thousands of ride-hailing and delivery workers in the U.S. and the U.K. went on strike on Valentine’s Day, calling for higher pay and other changes to their working conditions. (AP Photo/Erin Hooley)

People wait in the rideshare pickup area at O’Hare International Airport, Wednesday, Feb. 14, 2024, in Chicago. Thousands of ride-hailing and delivery workers in the U.S. and the U.K. went on strike on Valentine’s Day, calling for higher pay and other changes to their working conditions. (AP Photo/Erin Hooley)

Blossom Boston joins other ride-hailing and delivery workers in protest of Uber, Lyft and other companies in the Transportation Network Provider parking lot at O’Hare International Airport, Wednesday, Feb. 14, 2024, in Chicago. (AP Photo/Erin Hooley)

Uber and Lyft driver Marcus Cruz, center, joins other rideshare drivers at a rally for batter pay and working conditions at Austin-Bergstrom International Airport in Austin, Texas, Wednesday Feb. 14, 2024. Thousands of ride-hailing and delivery workers in the U.S. and the U.K. went on strike on Valentine’s Day, calling for higher pay and other changes to their working conditions. (Jay Janner/Austin American-Statesman via AP)

FILE - In this Feb. 9, 2021 file photo, a passer-by walks past a sign offering directions to an Uber and Lyft ride pickup location at Logan International Airport, in Boston. Thousands of U.S. ride-hailing workers plan to park their cars and picket at major U.S. airports Wednesday, Feb. 14, 2024, in what organizers say is their largest strike yet in a drive for better pay and benefits. (AP Photo/Steven Senne, File)

FILE - In this Jan. 12, 2016, file photo, a ride share car displays Lyft and Uber stickers on its front windshield in downtown Los Angeles. Thousands of U.S. ride-hailing workers plan to park their cars and picket at major U.S. airports Wednesday, Feb. 14, 2024, in what organizers say is their largest strike yet in a drive for better pay and benefits. (AP Photo/Richard Vogel, File)

Thousands of ride-hailing and delivery workers in the U.S. and the U.K. went on strike on Valentine’s Day, calling for higher pay and other changes to their working conditions.

In the U.S., Uber and Lyft drivers planned daylong strikes in Chicago; Philadelphia; Pittsburgh; Miami; Orlando and Tampa, Florida; Hartford, Connecticut; Newark, New Jersey; Austin, Texas; and Providence, Rhode Island. Drivers were also holding midday demonstrations at airports in those cities, according to Justice for App Workers, the group organizing the effort.

Meanwhile, U.K. delivery drivers for Uber Eats, Deliveroo, Just Eat and Stuart said they would turn off their apps and refuse deliveries between 5 p.m. and 10 p.m. The group Delivery Job U.K., which called for the walkout, said on Instagram that the strike was “a crucial opportunity to be seen and heard by society.”

Of eight delivery drivers who spoke with The Associated Press on the streets of London Wednesday, all but one said they planned to halt work at 5 p.m. Several, however, questioned whether the strike was long enough to make enough of a financial dent in the businesses.

FILE - An Uber sign is displayed inside a car, May 15, 2020, in Chicago. The Biden administration will enact a new labor rule Tuesday, Jan. 9, 2024, that aims to prevent the misclassification of workers as “independent contractors,” a step that could bolster both legal protections and compensation for many in the U.S. workforce. (AP Photo/Nam Y. Huh, File)

“One day is not effective,” said Evadur Rahman. “If we strike more than one day — two, three, four days — they’re gonna be affected.”

Rahman, a Deliveroo driver who planned to participate in the strike, said his daily pay dropped in recent months from about 140 pounds ($175) for eight hours of work to around 100 pounds ($126). He said he wanted the company to raise the minimum rate it pays per order from 2.90 pounds ($3.64) to closer to 5 pounds ($6.28).

“They must improve the minimum pay,” Rahman said. “It’s not enough for survival in this country.”

Justice for App Workers estimated that thousands of drivers stopped working Wednesday, and said that workers in 12 or more cities beyond the original 10 had held impromptu demonstrations. Delivery Job U.K. had expected 3,000 people to strike.

Jocilyn Floyd, who has been driving for Uber for nearly a decade, joined the picket line Wednesday at O’Hare International Airport in Chicago.

“Uber has proven time and time again that they’re putting profits over people. In shareholder meetings they discuss profits; there’s no question about safety, protection from deactivation or compensation,” Floyd said.

Uber said Wednesday that the strike wasn’t hurting driver availability or customer demand.

“Despite the headlines, we’ve seen no impact to our operations or reliability for riders. In fact, in most markets there are more drivers on the road today than there were during the same period last week,” an Uber spokesperson said.

Uber and other companies that rely on self-employed gig workers say those workers appreciate the flexibility of the job. But many gig workers are pushing to unionize, saying that would give them the ability to bargain over compensation, safety measures and other benefits.

In November, that unionization effort saw a setback in the U.K. , when Britain’s top court ruled that Deliveroo couriers don’t have collective bargaining rights because they aren’t considered employees.

Deliveroo said Wednesday that it has a voluntary partnership with a union that includes annual discussions on pay and it also provides couriers with free insurance and sick pay.

“Rider retention rates are high and the overwhelming majority of riders tell us that they are satisfied working with us,” the company said in a statement.

Rachel Gumpert, the spokesperson for Justice for App Workers, described ride-hailing as a “mobile sweatshop,” with some workers routinely putting in 60 to 80 hours per week. Justice for App Workers, which says it represents 130,000 ride-hailing and delivery workers, is seeking higher wages, access to health care and an appeals process so companies can’t deactivate drivers without warning.

But ride-hailing companies say they already pay a fair wage and have an appeals process in place for deactivations.

Earlier this month, Lyft said it began guaranteeing that drivers will make at least 70% of their fares each week, and it lays out its fees more clearly for drivers in a new earnings statement. Lyft also unveiled a new in-app button that lets drivers appeal deactivation decisions.

“We are constantly working to improve the driver experience,” Lyft said in a statement. Its U.S. drivers make an average of $30.68 per hour, or $23.46 per hour after expenses, Lyft said.

Uber said its U.S. drivers make an average of $33 per hour. The company also said it allows drivers to dispute deactivations.

Associated Press writers Jill Lawless and Brian Melley reported from London. Associated Press Video Journalist Melissa Perez Winder reported from Chicago.

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VIDEO

  1. Car Auction Business Idea

  2. Missouri Collector Car Auction: We Load Up! Pontiac, Chevrolet, Ford cars & trucks + Parts Pulling!

  3. After 40+ years, auctioneer Frank Imholte gets national recognition

  4. Unveiling the Thrilling Reality of Buying Auction Cars Online

  5. Car Dealers SCREWED Buyers, Now They're GOING OUT OF BUSINESS

  6. I bought 3 More Cars On A Online Auction

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  29. Uber and Lyft drivers plan Valentine's Day strikes

    Thousands of U.S. ride-hailing workers plan to park their cars and picket at major U.S. airports Wednesday, Feb. 14, 2024, in what organizers say is their largest strike yet in a drive for better pay and benefits. ... unbiased news in all formats and the essential provider of the technology and services vital to the news business. More than ...