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What are the things to consider before starting a used car business?

Are you planning on starting a used car business? If you have made up your mind on starting a business in Dubai then continue reading because we are discussing some important points on starting a used car business. According to recent surveys by the Roads and Transport Authority or RTA, it is said that  540 cars are there for 1000 people which is the largest number of GCC in a region. It is also the highest in the world. The population in Dubai is growing, people from different parts of the world are settling in Dubai for different reasons including for business setup and so the car sale will increase step by step. Not only the car sale but also the sales of  used cars

What to consider before starting a used car business?

Know the Audience for Used Car Business

First of all, you will have to understand the demand of the market and through that, you will know what cars you need to sell and to whom. One of the famous and well established used car market places has revealed that Sedans from Japanese brands are the most to sell out because clients have been continuously asking about them. Toyota Camry, Toyota Corolla, Honda Accord and Nissan Altima are the most popular ones according to the analysis of thousand used cars. Another important thing to notice is that you should never push the cars that are not in the market. Let us go on with the market flow. 

Understand the Optimal Price Point

Now you have to understand clearly the optimal price point in UAE for the used car business. About 61 per cent of the cars according to Dubizzle motors in the year 2018 were for less than AED 60,000 and AED 60,000 to 119,999 for 20 per cent of the cars. Talking about the eight per cent of the car, they were for AED 120,000 to 179,999. This might come off as surprising but when buying used cars expats usually choose economical vehicles.

As a business owner of a used car business, keep in mind that you don’t always need or do not need at all the top notch cars to sell.  Dealerships who deal with high brands are actually saturated and the interested clients can also get warranties.

Hire experienced staff

Never slack when choosing employees because to sell more cars. Improve profit you need staff that are exceptionally good with customer service. People feel only good when the employers are genuinely helping them.  Clients absolutely despise rude workers. So you have to train or select employees that are willing to spread a smile and kindness. When they feel at ease they will buy from you or else how can they trust your business. Sales staff and customer service can either break or make a business. So it is important for you to highly focus on the staff training, keep them updated about the etiquettes of customer service. This makes the client feel special and so they will choose you over the other. 

You can get everything under the tip of your finger. So clients can effectively compare prices and find the most competitive price. Even if you don’t have a competitive price, you can still win over with committed customer service. In the other business company if they don’t have excellent services. Then the clients automatically come to you and so you need the best set of staff.

While employing a staff, never only choose workers from a nationality group. Because you are missing the opportunities to choose and explore people with different skills. A diverse team helps you in many ways including the ability to communicate in multiple languages to customers from different parts of the world. If you are focusing on a particular region then you can assign the work to that person. Whatever the case, we always advise you to focus highly on customer service.

Employ a variety of marketing techniques

Marketing is highly beneficial for a successful business. So you need to employ strategic marketing techniques to keep up with other businesses. When it comes to marketing for the used car business. People use newspapers or other kinds of print publications. In order to get the attention of potential customers. It works good but it never hurts to market a little more and be open to a variety of techniques to market.

 You can employ your advertisements through online mediums. For example, you can effectively put up your ad like on the website that they advertise for local car selling sites. Use other innovative techniques to market. You can hire someone professional to market for you through online mediums especially on Instagram, Facebook, Twitter, Pinterest etc. Hiring an effective social media manager can manage all of your regular posting on respective social media. 

You can also try your hand at content marketing to spread a word or two about your business. Publish content about your history, successful business projects, happy clients, testimonials and case studies. You can easily build trust among the customers in this way. In short, we can say that travel is less travelled by people, when marketing always explores the opportunities to grow. 

Selecting a location

The used car business is one of the best business to start in Dubai and so start hunting for a location with a clear cut idea of what area you want to start the business. Choose one which is easily approachable to buy targeted customers. It would be beneficial for you if the chosen place is less likely to have heavy traffic. But has enough traffic for customers to notice the place. After narrowing down the choices, come up with a location that effectively has a place in store for all of your used cars.

 Deciding on a Niche

It is unusual for a car dealer to actually be affiliated with a single auto manufacturer. It is still an option for you to find and employ a niche that comes in mind. You can either focus on just a specific brand or even a price you think is good for your business. Employing such a technique will help you with narrowing down your targeted customers. As you deal with your business like that, you slowly find yourself and your company growing. At such a point you can try to branch out with different brands or even different price points.

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