A Dealers’ Guide To Opening A Used Car Dealership

Used car businesses have shown considerable growth in the recent times. It is a business which can earn you great profits and reputation. So, if starting a second hand car business is on your mind, you are making a good move. But, to open a pre-owned car dealership, you need to abide by certain rules and regulations that are imposed on the sale of pre-owned vehicles, by law. The dealers selling such vehicles should follow the Used Car Rule of Federal Trade Commission (FTC). Especially, the dealers who sell greater then five pre-owned vehicles in a span of 12 months are bound to abide by this rule. You also need to provide your customers with a buyer’s guide, which should have certain details mentioned in it.

Several Rules Act on second hand Car Businesses
A buyer’s guide must be prepared before offering a second hand car for sale to a customer. As a matter of fact, all those vehicles are tagged as second hand vehicles, which have been driven for reasons apart from test driving or moving. This fact applies to vehicles like demonstrators, light duty trucks, light-duty vans and cars that meet the specifications given below:
• The gross vehicle weight rating (GVWR) lower than 8500 pounds
• The curb weight less than 6000 pounds
• The area at the front, lower than 46 square feet.

Buyer’s guide
The buyer’s guide has essential purchase and warranty information. It should have the following details mentioned in it:
• The vehicle is sold with warranty or not.
• If under warranty, what amount of cost would the dealer pay, in case of any repairs?
• It should have all the oral promises in writing.
• The major electrical and mechanical systems of the car should be mentioned in the guide.
• It should have all the information related to the vehicle. These details include the vehicle identification number (VIN), its model, make and model year. A dealer stock number may also be given.
• The dealer information must be present. This includes the dealer’s name, address and telephone number.
• It may also have a signature line, where the buyer would sign on receipt of the guide.
• It must have the warranty details, regarding whether the warranty is limited or full. The warranty is considered to be full if:

o Services are provided entirely free of cost during the period of warranty.
o In case the car cannot be repaired after numerous attempts, the consumer has the right to get the money refunded or ask for a replacement.
o The consumer can avail the services, just by giving a notice. He does not need to take any more action.
The warranty is limited, in case none of these conditions are applicable.

• This detail should also clarify the cost percentage covered under this warranty.
Keeping these points in mind, you can create a proper buyer’s guide.

All this information will guide you to set up your own second hand car business. You need to abide by several laws and rules, and also create an appropriate buyer’s guide.

Alex Mathew is a proficient author writing articles on auction of second hand cars business and other similar topics. He contributes regularly for  Availability of used Citroen cars at g3marketing.co.uk and follows me on Google+.

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