Tag Archives: used BMW

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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.

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10 BMW Accessories For Man’s Best Friend

There’s nothing better than hitting the open road with your best friend. Even a short trip to the gas station is improved with a dog by your side. If you want to keep your pooch happy while on-the-go, check out the 10 car accessories for BMWs below.

1. Seat Belt

If your pooch rides shotgun, a dog seat belt is a must. It will prevent your pup from roaming around the car, which can be distracting and dangerous while driving.

A dog seat belt clips right onto a regular collar or harness. The other end snaps securely into the car’s seat belt buckle, just like your own.

2. Booster Seat

A booster or doggie car seat is a great way to keep your pooch comfortable on the road. The seat elevates your dog so he can see out the window, perfect for those with a Napoleon complex.

It’s also an ideal spot to take a nap. The seat is easy to install, able to strap to the front or back of a bucket seat.

3. Seat Cover

There’s nothing better than bringing your best friend along for a ride. However, if you want to preserve your BMW’s luxurious interior, invest in high-quality car seat covers.

Look for a durable material that prevents fading, scratches and trapped odors. Multi-layer designs made with polyester are both waterproof and easy to clean.

M3 30th Anniversary Interior

4. Seat Net

A seat net is exactly what it sounds like — a flexible net that extends behind your headrest to keep pets secure in the back seat. Fido can stay close, but you can also focus on the road without distractions. The net also doubles as a storage area, perfect for leashes, toys and portable water bowls.

5. Pet Barrier

Safety matters, even when you’re having fun. A pet barrier keeps dogs from jumping into the front seat. The adjustable steel barrier is easy to install, mounting to the back of the headrests with nylon straps.

Plus, a pet barrier means you no longer have to get stressed about paw prints or scratches on your BMW’s interior.

6. Travel Carrier

If you want to provide both comfort and protection for your pooch while on the road, invest in a quality travel carrier. Foldable travel crates made with water-resistant fabric and steel tubing are perfect for a ride in the BMW.

The crates are designed with mesh panels for ventilation and fasten in with a seat belt.

7. Pet Ramp

Pet ramps come in all shapes, sizes and designs. Free-standing ramps are an excellent choice for large dogs because they don’t need to be attached to a vehicle and can securely support the extra weight.

Carpeted ramps are best for dogs with long nails, gentle on the paws and easy to grip.

8. Trunk Organizer

If you plan to take any road trips with your best friend, a BMW trunk organizer is a must. You don’t have to worry about fumbling around in a mess, searching for the right item.

Instead, pack all of the essentials — including treats — in a neat, organized system. Most trunk organizers are customizable, with movable dividers to fit your needs.

9. Car Vacuum

We all love our dogs, but let’s face it — they’re hairy. When taking Spot on your next adventure, bring along a compact vacuum to keep your BMW’s interior clean.

A cordless, handheld model is handy for cleaning pet fur from car seats and carpet quickly. Look for a model with a car adapter to recharge while on the road.

10. Pet First Aid Kit

Keep your pooch safe while on-the-go with a pet first aid kit. Look for a kit that’s approved by the FDA and equipped with care essentials like gauze, antiseptic wipes, latex gloves and adhesive bandages. Supplies are easy to carry, best kept in your BMW trunk organizer or center console.

The skies are blue and the weather is warm. Why not hop in your BMW, put the windows down and hit the open road?

If you plan to bring your furry friend along, consider packing some car accessories like a travel carrier or a trunk organizer. Plus, don’t forget the portable vacuum to keep your car’s interior pristine.

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What to Look for When Buying a Used BMW 3 Series

Owning a BMW is a fantastic experience, but for most of us, buying a new one off the lot isn’t an option because of the cost. Luckily, plenty of used BMWs are on the market just waiting for you to pick them up. If you’re want to purchase a used BMW 3 series, what should you be on the lookout for? Here are four things.

  1. Cooling System Problems

The BMW 3 series is an excellent line of vehicles, but it’s notorious for coolant system failures between 80,000 and 100,000 miles. The 3 series has three main failure points: the expansion tank, the thermostat and the water pump.

If you’re getting a BMW that has more than 100,000 miles on the odometer, find out if the cooling system has ever been serviced, and how long ago the service happened. If it hasn’t been, expect to replace all three of those parts at the same time to prevent cooling system failure.

  1. Frame Damage

Older cars are always at risk for rust or frame damage, and 3 Series BMWs are no exception. If you’ve found a good car you’re interested in purchasing, make sure to have it inspected at a BMW shop or a shop that has a BMW specialist on staff.

It isn’t a deal-breaker — especially if you’ve found your dream BMW — but it is an expensive repair, so make sure you keep that in mind.

  1. Too Many Stickers

The fact that stickers are on the car isn’t going to be a huge deal. However, it could be a clue into how the car was handled in the past. If the car is covered with racing stickers, chances are it was at least autocrossed. Again, this may not be a bad thing if it was done right, but it could also mean the car was driven hard. If the car has a snarky “eat my dust” or middle finger bumper sticker, chances are it wasn’t driven at exactly the speed limit everywhere it went.

Don’t worry, though — with the right tools, removing decals and stickers is simple. All you need is a razor blade and an adhesive remover. Slide the razor blade under the edges of the sticker, then spray beneath it with the adhesive remover. Repeat as necessary until the label comes off, then use the adhesive remover again to get rid of any remaining residue.

  1. Car History

This is a given for any used car — you should always write down the VIN and research the car’s history before you buy it. A site like CarFax or other similar resources will help you discover how many owners the vehicle had, whether the mileage is accurate and how well past owners have maintained it over the course of its life. It will also let you know if the car has ever been damaged or totaled. If anything in the car’s history doesn’t add up, you know this is probably a car you should avoid.

Picking up a used BMW 3 Series is a fantastic way to get your feet wet, so to speak, in the vast pool that is owning a BMW. Just do your research before you sign on the dotted line to make sure you’re getting the most for your money and aren’t buying a piece of junk.