Car Dealerships Rochester NY:

For most entrepreneurs who are still starting on their business journey, going for a franchise business is the way to go. Because of its relative ease of startup, this option is undeniably less daunting than having to start your very own business from scratch. If you live in Rochester, New York, one of the businesses that you can franchise is a used car dealership, like one from Vision Automotive Group. To help you get started with this, here’s a list of factors that you should consider:

1. The demand for used cars in Rochester

Before you go full force with your decision to franchise a used car dealership, take the time to study the economic and market conditions in Rochester first for the following periods:
  • The present
  • The next five years
  • The next ten years
Economics experts can help you with this chart, and in studying whether or not used cars will indeed be marketable and profitable in Rochester. Focus your study on the demand for these types of vehicles, as you definitely wouldn’t want to waste time, money, and effort in opening a used car franchise, wherein it becomes difficult for you to make any sale.

2. The cost of opening a used car franchise

Most aspiring entrepreneurs will already have saved up enough money, or at least a substantial percentage of the total cost, for their business venture. To make sure that this business is the right one for you financially, do inquire about the general estimate of franchising a used car dealership. Compare the price between at least two to three used car dealers, so that you have a benchmark to determine as to which price range is affordable and what isn’t.

Even if you are planning to take out a loan for your business venture, keep in mind that you will still need to fund at least 20 to 30 percent of the total cost by yourself in cash through your savings. Hence you have to make sure that this plan of yours is one that you can afford. As a quick guide, the costs usually run from 100,000 to 200,000 USD, which is generally set to cover the following:

  • Inventory
  • Insurance
  • Auto Dealer Bond
  • Business registration and permits
  • Development of your location
However, the cost will also differ based on factors like the size of your business, or the type of used cars the franchise is selling, such as Kia dealers.

3. The track record of the used car dealership

The factor that makes franchising more accessible to start up than other car dealerships is because you are already banking on a well-known name. Hence, you will not have to exert as much effort in marketing as you usually would with a business that you have to start from scratch. However, this advantage only holds if the car dealership that you will franchise has an excellent track record.

If the car dealership has a lousy track record, then it’s as if you are also carrying the burden of this problematic business along with you. As you compare the prices of two to three car dealers, take the time to study and investigate each of their track records, too, and go for the one that has the best history.

4. The economic risks

When you become an entrepreneur, it is quite expected for you to become a risk taker. No business is ever without any risk. Therefore, as you think about franchising a car dealership, talk to an economics expert as well in local Rochester to help you analyze and understand the various economic risks in your locality, and how you can play with the same.

For example, there may be certain economic events that might leave you with more than half of the cars in your inventory unsold for months. Regularly in the year, unless there are any unforeseen circumstances, these economic events are usually predictable. For example, it is expected that in September, there might be an increase in the demand for used cars, as youngsters head off to university. The same also holds for December, where used cars might also be Christmas gifts.

There are months in the year, too, when the spending capacity is lower. Study on these risk factors, so that you can also effectively strategize how you can still thrive and survive even in these adverse economic conditions.

5. The competition

Whether you are opening a franchise business or not, it is also essential for you to get to know and to study the competition. Having competing companies around can mean a good thing, as this can speak of how used cars might be in demand then, in Rochester. However, the challenge now for you is how you can healthily compete with these other car dealers, and convince buyers to purchase used cars from you instead. Take the time to study how the competition operates, and what you can do such that your car dealership will be different from theirs in a positive way.


A car dealership, or any other dealership, for that matter, takes hard work to be successful. Even if you are going to franchise one, you shouldn’t use this to your advantage in a negative way, such that you begin to slack. Rochester also already has numerous car dealerships, being that it is in New York, after all. Hence, you have to put in your A-game in your daily operations to keep yourself on top of the competition.