If it’s a quick answer you are looking for, then YES. This is the right time to invest in the used car business. But why is it the right time to become a used car dealer? There are brand new cars being manufactured and put out into the market each passing day. Isn’t the public going to prefer them over pre-owned cars?
These are just a few of the questions we will dive into in this article.
The current state of the used car market
The used car business was always a profitable industry on its own. But even with the pandemic hitting hard on almost all the best “money-making businesses”, the second-hand car industry is on the rise.
Right now the supply of new cars is at an all-time low mostly due to the lack of labor and negative impacts on schedules. Because of the steady rise of covid infections worldwide, people are now turning towards buying personal cars to avoid public transport.
Yet, because of the pandemic being tough on the financial standings of many, most tend to search for cheap price points for their desired brands. This is a reason being a used car dealer right now would net in big profits. The used truck and car business will bridge the gap between the cheap prices people are expecting and their desired brands. It will also be a solution for the rising demand and the supply shortage of the “new car” market.
A survey was done by “Automotive News” resulted in many car dealership owners saying that they expect the most profit growth potential in their used car departments . If you are to become a used car dealer, you need a constant supply of second-hand cars. There are a few ways of getting a supply, but the most effective way is by tapping into the overseas used car market.
Importing second-hand cars can result in many benefits such as a larger range of available brands. Every used car dealer has an overseas supplier and market they prefer. Recently China has bloomed in the pre-owned car business, mostly as exporters. Already a giant in manufacturing and exports, it offers an abundance of both foreign and locally used cars into the second-hand car industry.
China offers pre-owned cars that are in perfect condition. Along with the incredible work ethic most people from China have, many used car dealers try to tap into what they offer. Importing from China is also quite easy compared to other countries. This is because most products are already imported from China and it has global recognition as one of the biggest manufacturers.
Even so, picking your supplier is a tricky task. This is because of the massive claims most suppliers make, which can be fake on many occasions.
Selecting the Supplier
If you are interested in securing a partnership with a supplier from China or any other country for that matter, it should be done so based on trust and reliability. It’s always best to do your own research before reaching out to one.
One of the top suppliers from the Chinese market is Global-Ucar with ample evidence to back up its claims. There are no refurbished cars and accident cars in Global-Ucar. Founded in 1997, we have over 20 years of experience to support the exporting used cars business as one of the largest Chinese enterprises engaged in the used car business. Global-Ucar also spearheaded the 1st batch of pre-owned car exports in China ranking as the number one supplier in that project. We integrate second-hand car consulting, purchasing, exporting, importing, and other resources, and have a huge second-hand civil and commercial vehicle inventory base in the world. So if you plan on being a used car dealer yourself, Global-Ucar might be a supplier worth considering.
 Used car survey by “Automotive news”: https://www.autonews.com/dealers/dealer-optimism-builds-20