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5 Things to Do After You Buy a BMW

Responsible for bringing the sports sedan to the masses, the blue and white roundel commands a respect that few other marques can match. Whether it’s your first or the next of many, buying a BMW is a reason for celebration. In addition, there are a few other things you ought to do.

People have been owning BMWs for quite some time, and while the brand has its fans and haters, you would be wise to listen to the advice of those who have come before you in the annals of BMW ownership.

1. Check for Recalls

BMWs are complex cars, and their engineering often pushes the limits of what’s currently doable. That makes them great to drive, but it can lead to catastrophic failure if a recall isn’t addressed. Speak to your local dealer and understand whether your car needs to have any major recalls addressed so that you can be comfortable owning it for a long time and eventually, selling it.

2. Get Some Driving Skills

Sitting down behind the wheel of a BMW can make you feel prestigious. It can also bring out the worst driver in you. Your fellow BMW owners would appreciate it if you don’t go pulling stunts that are more associated with the Mustang crowd, if you know what they mean. Consider attending a defensive driving school or getting a high-performance driving education, which will help you better understand the limits of your new car and how to explore them safely. Probably off of public roads.

3. Find a Good Mechanic

All cars break down at some point, and while there will always be people who claim that BMWs are unreliable cars, there are many others who’ve had good experiences with the marque. It’s true that the maintenance required to maintain a more premium car with advanced engineering, such as a BMW, is greater than that required by your garden-variety Skoda, finding a capable mechanic whom you trust will offset some of the costs that might come later in ownership. They’ll be able to advise you on the car’s maintenance needs early on.

4. Change Your Tires

Most cars these days run all-season tires that are hard and not designed for “spirited” driving. It’s also true that many owners neglect to change their tires when they’re worn down or past due for a change because of age. Dry and cracked old tires are just as dangerous as worn-out tires, and a set of good sticky summer rubber can really change the on-road behavior of your car. Invest in a good set so that you can enjoy driving your BMW from day one.

5. Drive It!

The Ultimate Driving Machine wasn’t made to sit around in your driveway. If you’re going to be a BMW owner, the best way to do it is behind the wheel of a BMW. These are great cars and cars that demand to be taken out and driven hard. Whether it’s eating up miles on an eye-opening road trip or helping you explore the nearest canyons (at legal speeds, of course), make sure you find some time to go and enjoy your new BMW. With a little attention, it’ll be with you for a long time.

4 Tips for Starting a Used Car Dealership

The passion for starting your own business is something that many people can relate to. Being the boss over something you’re passionate about that helps your community is invigorating.

If you have a passion for BMWs and the desire to start and run a successful business, you should consider starting a used car dealership. Channel your passion into your full-time job and develop your skills as a business owner at the same time.

Read on to learn five essential tips for starting a used car dealership. With the right knowledge and preparation, you’ll shift into the role of a business owner without any bumps in the road.

1. Set Up Your First Steps

The first steps to starting your used car business may seem obvious, but don’t let them get overlooked. First, you’ll need to choose a location for your business. This may be where you live or in a separate city.

Look around a few areas to see what land is for sale or if there are any businesses that are closing. Compare the costs of starting with a couple of fresh acres or using an existing building.

Next, you’ll have to choose a name for your dealership. This may need to follow guidelines provided by BMW, so reach out to a corporate representative to talk further about the specifics. They may have a procedure set in place to help new dealership owners.

After you’ve chosen your dealership’s name, you’ll need to secure a domain name that will be your business’ permanent web address. Be aware that there are upfront fees to claiming the domain name, even if you don’t immediately start building the website. You may also have to pay a yearly fee to maintain ownership of your domain, depending on which company you register with.

Last, you’ll have to think of the logistics. What is your target market? Think of the age range of the people in the area where you’ll set up your dealership. Who is already there and would want a BMW and who do you want to win over? Start with your practical market and make a plan that will grow your business from there.

Don’t worry if this all sounds like a new language to you. Take these steps slowly to get used to the process. You can also consider taking a few business classes or earning a diploma to make you a more successful business manager.

2. Determine Your Breakeven Point

That will help you figure out the initial costs of starting your business and compare it to when you’ll break even. The average used car dealership sells 87 cars per month, but it’s safe to bet that your dealership will sell a little less to nearly equal the amount per month in your first year. You’ll need time to market your business and make it a familiar place that people are willing to trust.

Be prepared for your dealership to not break even the first month. As time goes on, you’ll see a gradual return on your initial investment. Talk with a CPA or calculate your breakeven point to determine what numbers you need to pull to make your first profit.

3. Get Your Business in Order

Before you start construction or open your front doors, you’ll need to obtain a dealer’s business license to legally make a profit off of selling cars that aren’t titled in your name. Your local DMV will help you figure out how to get this license where you live. You’ll have to meet certain requirements, which may include things like:

  • Providing proof of business insurance
  • Passing a background check
  • Registering your business
  • Signing up for a pre-licensing seminar

You should also apply for an Employer ID, also known as a Federal Tax Identification number. It’s how the IRS recognizes your dealership as a business and processes your taxes accordingly. The good news is that it’s free to apply and once you’re approved, you’ll get that number immediately.

After you have your Employer ID, you can register for taxes with a local CPA. They’ll fill you in on any other loose ends that need to be tied up in order for you to be compliant with tax laws. Discuss whether or not your business should be a Limited Liability Corporation (LLC) or an S corporation (S Corp), which may provide better tax breaks depending on where you live.

The next local office you’ll have to call is your city’s business license department. Talk about how you should get your business license and contact the city’s zoning department to double-check that the land you’ll use for your dealership is zoned for that purpose.

It’s crucial to then get the insurance your dealership will need to succeed. You’ll need comprehensive general liability insurance to sign your eventual lease and any client contracts. It’s also what will protect you from lawsuits related to customer injuries or damages.

Once you have everything lined up, open a business bank account specifically for your dealership. This will make filing your taxes and reporting your income much simpler. Stick with the bank you trust for your personal finances or ask around to see which banks offer a better solution to your needs.

4. Review the Law

One of the most important things you can do for your used car dealership is review the laws that your business must abide by. Specifically, used car dealerships of any brand fall under the Federal Trade Commission’s (FTC’s) Used Car Rule. It states that any car dealers who move five cars or more off the lot each year have to follow each guideline and regulation in order to remain open.

Use care dealerships also have to maintain and display the Buyer’s Guide, as explained in the Used Car Rule. The guide explains any warranties attached to the car and where to get information on possible future recalls.

If your dealership does not comply with either of these laws, it’s liable for large fines that meet or exceed $43,000. Check your state laws to see if your state is the one to reinforce these laws and if they have any additional rules you should be aware of as the dealership owner.

Ask for Help

Starting any kind of used car dealership isn’t something you can do overnight. There may be steps that are new to you, but don’t feel like you have to do everything alone. BMW representatives, your CPA and your state offices are there to help with any questions you may have. Asking for help along the way will help your dealership open up sooner and stay on the path to success.

Four Car Issues Every BMW Owner Should Know

BMWs might be known for being some of the most reliable luxury cars on the market, but like everything designed by human minds and built by human hands, problems can crop up. Some of these issues are minor, while others can leave you stranded on the side of the road if you don’t address them quickly.

Addressing these problems can help you optimize your Bimmer for the most ideal drive no matter where you take it. Let’s look at four of the most common BMW problems and how to prevent them — or repair them when they do occur.

1. Power Window Failure

One of the best parts of owning a modern car is the convenience of power windows — at least, until they fail and end up stuck open or closed. Any BMW equipped with the E46 window motor and regulator might experience problems.

The regulator clips can break, which means your windows will move slowly — or not at all. These problems are easy to fix, but they do require taking apart the entire affected door to access the window regulator.

2. Oil Leaks

Oil only works if it’s able to stay in the engine compartment. BMW’s have a habit of developing oil leaks once you pass the 55,000-mile mark. Some are easy to repair — the valve cover gasket and the oil filter housing gasket being two of the most accessible oil leak related repairs — while others, like the rear main seal, may require the assistance of a professional.

You can repair some small leaks without disassembling the engine by using products that act as stop-leaks. However, while being a temporary mechanic might be convenient, it won’t work for larger or more complicated leaks.

3. Cracked Rims

Many BMW models come equipped with 19-inch run-flat alloy rims. While these rims look amazing, they are prone to cracking — and a poorly placed crack can puncture your tire, leaving you stranded.

It is important to note that this is only a problem for Class Series vehicles sold between 2009 and 2012 — BMW settled a class action suit in 2015. Although there’s not much you can do to prevent this other than driving safely, it is something to be on the lookout for if you’ve got a Bimmer from those years with the original rims.

4. Coolant Leaks

This BMW problem is specific to the BMW 3 series, but that is a great variety of cars to choose from. Regardless of the year, coolant leaks always manage to crop up. These can have many different causes, from a cracked radiator cap to a blown head gasket to a hole in the radiator itself.

No matter what the reason is, it is something you need to repair quickly. A lack of coolant could cause the engine to overheat — plus, the coolant is toxic to animals and the environment.

BMWs are, by far, one of the most reliable brands on their market — but that doesn’t mean that they don’t have their share of problems. Being aware of these four common problems can help keep your car running and prevent you from ending up stranded on the side of the road.