Used Car Dealer jobs(Also known as Car seller, Used car trader, Used car specialist, Car importer, Car speculator)
A used car dealer buys and sells a variety of pre-owned vehicles. The used car dealer may be self-employed and have their own premises, or they may work for a large used car sales company in a staff role. With 31 million cars on UK roads, according to the DVLA, the domestic market for both new and used cars is vast. The cost of obtaining a new car can be prohibitive for most people, so many buyers look to the used car market for purchasing a new vehicle. The market ranges from £100 “bangers” up to the £100,000-plus used supercar market, and there are used car dealers who operate throughout this spectrum. Cars they sell are typically for private road use, although they can be for corporate or rental purposes also. At its most basic, a used car dealer can be someone who buys and sells a series of cars from home, although candidates should be aware that there are rules governing the number of cars that can be bought and sold within a year without having to register as a “dealer.” The limit is currently 4 per annum. Beyond this, the part-time trader will need to register their proceeds as taxable revenue, and must buy public liability insurance. The majority of used car dealerships are independently owned operations which buy and sell a range of manufacturer’s makes of car and retail through a fixed premises. The aim is to seek out reliable cars for less than market value (often at auction), and then apply a “mark-up” when a customer is interested in buying the vehicle. Some dealers choose to specialise, either in a specific make of car, or in a certain type of vehicle, for example 4x4s or sports cars.
SalaryIndependent dealers with their own premises are self-employed individuals, and they derive an income based solely on the combined value of the mark-up of the cars they sell. This is why many candidates choose to sell the odd car from home to get started, and then seek premises when they are confident that they know what they are doing. The cost of premises' overheads often results in early business cessation. Established dealers with a stock of several hundred cars can bring in revenues in excess of £100,000 per annum, and very large companies such as Carcraft have an annual turnover in the millions of pounds. Small independent dealers can expect around £20,000-£30,000, although it varies widely depending on region and stock rotation. Candidates who join established retailers may find the basic salary to be very low (around £12,000 for a Midlands dealership). Firms are currently taking full advantage of the “post recession climate” to offer very limited basic salaries. This is because the basic remuneration is supplemented by commission for each vehicle sold. A successful sales person can work with a basic of £13,500, and routinely bring in £60,000 per annum because of their sales commission. The aim of this is to encourage top sellers to perform and make staff work harder for their bonuses.
- Supply a range of vehicles which the public has an interest in purchasing.
- Handle vehicle registration and transfer of ownership V5 documentation for buyers.
- Supply vehicle road tax for stock, in cases where it is a closing factor of sale.
- Locate and purchase stock, usually either at auction or derived from customer trade-in.
- Provide some form of aftercare policy, dependent on the type of vehicle sold and the customer’s demands. This may be a third-party policy.
- Only supply vehicles of sound mechanical quality, to prevent customer dissatisfaction or return.
- Handle administrative paperwork with regards to DVLA documentation and tax.
QualificationsThere are no formal academic barriers to entry, and being an independent dealer requires only that the candidate has a decent knowledge of the used car market. Candidates who wish to join established retailers are expected to demonstrate past success in a sales environment. GCSEs are often the minimum requirement here, although some dealers are more concerned with the candidate’s personality and applied approach to sales than their ability to pass exams.
- Broad knowledge of used vehicle values and paperwork administration.
- Key component of a candidate’s skill set is, “being able to sell ice to Eskimos.”
- This is a fast-talking job that requires excellent and resolute sales technique.
- The salesperson must be able to demonstrate buyer empathy along with sound technical knowledge.
- Must understand “perceptual macro honesty”, to appear genuine and sincere.
- Must have understanding of closing techniques, and the ability to form customer relationships quickly.