What are the risk in investing in car dealership business.

[Kayzzy3]

Car dealership is often seen as a business for rich, high and mighty, but recently I discovered that people sometimes poll monies together to start car dealership.
I also learnt that sales are higher toward the end of every year and they usually make plenty of profit from deals during this period.
What do you think are the risk involved in investing in such a venture??

 

[Alexandoy]

I know the guy who owns the Ford dealership in our town. He is rich and more likely he owns the dealership in whole. Everyone calls him boss and he is amiable with the customers. I found out that the guy is fond of cars. With the business it is not really earning good but it is not losing money. After 7 years of operation it looks like the business is still experiencing growing pains. The capital for a dealership is huge because the place alone would incur a big rental cost. Car dealers have a repair shop that has a big workshop with roof to accommodate maybe 50 cars. If you do not have millions for the capital then you cannot have a car dealership.

 

[Lagazine]

The risk one can encounter in car dealership business is minute but very dangerous as it can claim the proprietor live. The risk ranges from decrease in value of the automobile to fall in value of the currency. If the car is fairly use, you will need to spend on different kind of correction and later fight hard to get a buyer.