How to become a Used Car Dealer
- Price: £5.99
- Published: March 2016
- Type: Business Opportunity Profile
- Format: PDF
- What qualifications and skills are required?
- Key market issues and trends
- Trading, commercial and legal issues
- Further information
Used car dealers trade in second-hand vehicles, typically sourcing them from auctions or private owners and selling them to private buyers. Most dealers accept buyers' previous vehicles under part exchange and some provide credit finance arrangements. Many used car dealers also run an on-site car maintenance and repair service, however, this is covered separately in BOP 98, Car Maintenance and Repair.
Some used car dealers sell a broad range of vehicles, typically higher mileage older cars, while others specialise in a specific vehicle type, such as vintage, luxury or sports cars. The used car market is dominated by chains.
The used car market has traditionally been associated with unscrupulous practices, and used car dealers face particular challenges in convincing potential buyers that they are reliable and trustworthy. Used car dealers who offer credit finance arrangements are subject to strict rules concerning consumer credit.
This profile provides information about starting up and trading as a used car dealer. It describes the skills required, the training available, the current market trends and some of the key trading issues. It also explains the legislation that must be complied with and provides sources of further information.