Due to man's creative inventions, cars are constantly being upgraded in terms of efficiency and design. Nowadays, luxury and hybrid cars seem lucrative to deal in. However, when deciding to open a car dealership for the first time, one of the greatest challenge is choosing the type of vehicles you would like to trade in. Just like every other business, a risk is involved, and the choice you make in the beginning will define your future dealership life. So, which will it be? Luxury, hybrid, or both?
Before you start dealing in exotic cars, it's important to know a thing or two about them. First of all, the greatest benefit of selling luxury vehicles is that they have a high-profit margin. Even though the initial cost might be relatively high compared to electric and common road cars, the returns of selling one auto could take care of you for months. Therefore, you do not have to worry about volume sales. Instead, your aim would be selling the most expensive car in the shortest time bracket.
Apart from that, luxury vehicles have high maintenance costs, and it is usually difficult for an owner to find a mechanic who is perfectly conversant with them. This makes you the most preferred option for frequent repair and maintenance, thus creating a secondary niche from which you can earn good money. All you have to do is ensure that you have highly specialized technicians who are well equipped for the task.
Other than a lump sum starting capital, losses from luxury auto dealerships are hard to come back from and could easily lead to a sudden collapse of your business.
They are also known as electric cars and are gradually increasing in the market with time. Unlike luxury cars, they do not require as much initial capital to start. Another intangible benefit is that the cars themselves are highly efficient and environmentally friendly. Therefore, you would actually be doing the ecosystem a favour by trading in them. Modern hybrid vehicles come in really impressive designs and could actually give some exotic cars dealers a run for their money. In addition, the electric car market is still fresh compared to the luxury vehicles market. This implies less competition and a better chance of seizing a bigger consumer base for yourself while there is still time.
However, dealing in these automobiles would require you to have specialized operational equipment like electrical powering stations which may be quite expensive to install and maintain. Moreover, they do not have high-profit margins like luxury cars and are more profitable over volume sales, meaning more time and hassle.