Owning a bike or any two-wheeler is one of the topmost priorities of a middle-class man. But not all of us are fortunate enough to buy a vehicle thanks to the ever-increasing prices and the increasing taxes or the GST applicable on them. To pay the cost at a slow rate or minimize the cost, one usually takes a loan from a bank or opts for a second-hand vehicle both in terms of cars and two-wheelers.
Thinking from the business point of view, if we talk about the pre-owned two-wheeler business, this business has a bigger market as compared to the original new bike business. This is because you can get the bike which is just used for a couple of years at a very low price or sometimes even at half of the price as compared to the new one. Hence making it a stellar deal.
Welcome to yet another blog at MotorBhai, we hope all our readers would be doing well and would be in the pink of their health. Talking of second-hand vehicle business today, we would be discussing today how could you start your own second-hand vehicle business and what all are the requirements for getting started.
In second-hand business, there could be two ways how you can work and earn a profit, one could be by helping a client to sell or buy a vehicle and charging commission over it, or directly dealing in buying and selling at a margin and doing these with the complete verification of documents.
Some points which should keep in mind while buying vehicles for your business.
- KMs driven.
- Which state the bike belongs (UP, Haryana etc.).
- Is the vehicle accidental
- If the insurance is paid at the correct time in correct time interval.
We have made a separate article on how you can check the condition of a two-wheeler if you are looking forward to buy one form the second hand market, you can check it out here.
Some dealers also provide the option of park and sell, in which the client parks the vehicle in the stockyard and the second-hand dealer tries to get it a buyer. In this, the seller has to pay some amount of commission to the dealer.
To start this business and to succeed in it, you must have the right knowledge of the second-hand and the new bike market and most importantly you should have a keen interest in bikes as well. And if you are starting this business from the scratch, you can start by dealing in bikes of Hero & Honda. This is because it is the most popular brand in the bike field and most people prefer them as their first bike due to their low maintenance and high and easy availability of spare parts in the market.
In Hero, you can go with bikes like the Splendor, Passion, HF Deluxe among others. Initially, you must start with these bikes, and later you move on to deal with cars from bigger brands like Royal Enfield, KTM etc.
Talking about the investment part of the business, which most people would be interested in, we would say that it totally depends on you. You can also start with 1 lakh or 10 lakhs. This is a vast business and the more you invest in it, the outcome would be accordingly. With a large amount you can make the business much better. Two-wheelers that you buy for this business also require maintenance even when they are not in use and a safe place to be parked, so that needs to be noted as well. Although these expenses much less as compared to cars.
For us, what is more important than the investment is how you deal with the customers, and the strength of your network and relations in various fields. Mind you, that this is not a one-man show business, and it would require a team effort from all the members who would be controlling the different areas of the business be it marketing, IT dept or the technical issues to make it a success. Networking with new showroom officials could be beneficial, as when a customer buys a new bike, he usually sells of his old set of wheels.
To market your second-hand business, you can use social media, do inbound and outbound marketing, among various other techniques, we have made a separate blog on this topic, and you can check it out here. Today marketing holds a very crucial part in any business, and investing in it, can help you in long term, guaranteed. Marketing can give you great returns.
You should also provide the customers with the warranty on the vehicle and provide some complimentary services to build a sense of trust, which can further lead to word of mouth to other buyers as well, which would help to grow the business.
Also, expecting 100% or huge profits from any business initially would be unfair, and the same goes with this business as well. Sometimes you would also have to bear losses also on vehicles and this is no new thing. You can sell a bike in a maximum of 3 months for making a great deal, and it also depends on the vehicle as well, the better the condition of the vehicle, the lesser the time it will take to sell-off.
One of the leading dealers in second-hand two-wheeler businesses is MotorBhai which deals in certified second-hand two-wheelers with their complete document verification and their past records checked thoroughly. You must check out their wide variety of two-wheelers if you are looking forward to buying or selling second-hand used two-wheelers at the best price available as well!
With this, we would like to end this article here, and we hope we would have given you a proper insight on how you could start your own second-hand business. If you feel we have missed out on any point, do let us know in the comments section below and do mention your thoughts which you have regarding this business. You can read more of our articles here.
We will see you in yet another article real soon, till then stay safe & ride safe!