Starting a dealership / brokerage...

[BadFish]

Jon, I live in a pretty small college town with no 'high-end' import car dealers. However, there are tons of Bimmer/M-B's etc around here...people must go 2 hours away to get to the closest dealer.

I'm interested in starting some sort of business to address the demand for those cars around here. I highly doubt I have the kind of capital it would take to buy a Bimmer franchise, but someone suggested that I start as a import car broker.

I've never really heard of that before, but I guess I'd be hooking buyers up with sellers, and arranging for delivery, etc.

First question, just for my curiosity (and maybe future use): How does one go about getting a Bimmer franchise? What are the costs involved, etc?

Second. have you heard of being an import car broker, and do you know how I'd go about doing that...licenses invloved, etc?

Also, what would be involved with starting a dealership specializing in used imports, or used cars in general?

I have no background in car sales, so I could use any advice you could spare.

I appreciate it.

[Jon S.]

This is a tough post to answer...

One of my biggest dreams has always been to own my own
dealership, and frankly, I am beginning to realize that I
am probably never going to get there.... :(

The car business is rapidly evolving from "Mom & Pop" or
family-owned enterprises to big business/corporate-type
ventures. Whereas Gerald Cutter managed to parlay
a job as a salesman on the line at the local Ford store
into a "megadealer" position, such a progression is
extremely uncommon nowadays...

Outside of the corporate word (e.g. AutoNation),
nepotism is the only way to get your hands on a
franchise. A BMW franchise now costs millions of dollars.
Money alone won't do it. You have to prove experience
in the G.M.'s capacity to even be considered.

There are even "dealers' schools", costly academic institutions
that dealers send their heirs to for a classroom education
of the business...

My advice is to simply get your feet wet selling cars. Any
brand will do. When you are ready, graduate to highline
(BMW if you so desire), and get some more experience.

After that you can become a "broker" in some states if
you really want to. Frankly, I'd never want to be a broker
myself. Brokers are just middlemen, and as margins are
trimmed, they'll end up being cut out of the car business...

[eugeneDC/TX]

what about starting a service shop... maybe you could own/operate, hire some certified techs... sounds like you'd get a lot of business from ppl not wanting to go 2 hours for an oil change...

[BadFish]

Eugene, I haven't considered that.

Jon, can a non-dealer be cetified to do warranty work on certain brands (especially BMW)?

Thanks, guys, for your responses.