Step by Step Guide to Starting a Used Car Business in India

The demand for used cars in India is increasing due to the rising prices of new cars as well as the high interest rates charged by banks on auto loans. Used cars are more popular among consumers than new cars. Additionally, most people in India who want to buy a car are unable to afford the ex-showroom price and many of them opt for used cars.

This article covers every aspect from opening a used car showroom to doing market study to managing the business.

market research

The demand for used cars in India has been on the rise for the past few years. As per reports, the Indian used car industry was estimated to be worth $24.24 billion in 2019 and is expected to grow at a CAGR of 15.12% between 2020 and 2025. So, before starting your business do your research about the market and the customers. This will give you a better idea about the demand for used cars and the revenue potential of your target segment.

drawing up

Deciding on the purpose of the company is the first step in developing a business strategy, and when opening a used car showroom, this goal should be your top priority. This will give you more and more recommendations and brand recognition. While developing your business plan, keep in mind the location where you want to open your used car showroom, as well as relevant facts, figures and industry indices.

capital requirement

If you have enough capital on hand, you are ready to go. If needed, you can get a bank loan to fund your used car showroom. Initial expenses that may occur include the following:

Monthly office or plot charges

Legal costs associated with setting up the company, such as ownership and no-sell agreements

Other items like furniture, desk, laptop, phone,

Marketing and promotion costs, both online and offline

Consultancy fees for accountant’s office supplies

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