Used Auto Sales Business Plan

Lane County needs a large selection of quality used cars, and Integrity Auto Sales will sell these vehicles at a competitive price. The owner and sales manager have over 30 years of combined experience in new and used auto sales. We will develop our working relationship with local dealers and auctions to bring savings to the customer.

Solution

We will create a purchasing environment that caters to the customer’s needs. We are selling a professional service and an experience in car buying that will bring customers back and encourage referrals. We estimate an optimistic gross margin above the industry average. We will be successful due to our excellent team and the determination of the owners.

Market

Almost everyone needs a car to get from point A to B. Many families have multiple cars. Due to the recent success of the new car market, there is a large inventory of used cars available for resale. New car sales increased by 24% in October.

Competition

Used car dealers are notorious for unethical sales practices. Customers are cautious and untrusting as a result. The more we provide a high-quality sales experience, the more successful we will be. Our salesmen will provide a friendly and personal experience for the buyer. We will follow up and ensure customer satisfaction. We will rely on these customers for excellent references. This company will build a strong working relationship with our suppliers and customers.

Why Us?

Integrity Auto Sales provides a unique car buying experience in the Willamette Valley. We focus on customer satisfaction first. We understand that vehicle purchasing is a necessary but sometimes unpleasant experience. Our goal is to provide enjoyable, honest service by satisfying individual customers practical transportation needs with a quality product.

We also believe in having quality vehicles at a low cost and will back each vehicle with a 30-day limited warranty. Our company will make a profit by generating sales. It will provide job satisfaction and fair compensation to its employees, and a fair return to its owners. Hard work and performance are rewarded through bonuses and commissions. Job satisfaction is crucial for employees and owners, and we will create an enjoyable and profitable work environment for all.

Expectations

Forecast

Growth will be moderate to good, with steady cash flows and several months of loss in the beginning.
Marketing will remain below 10% of sales.
The company will invest residual profits (10%) into financial markets and approximately 50% into company expansion for the first year.

Financial Highlights by Year

Financing Needed

We need $130,000 funding to start, including a $100,000 loan. Jonathan will invest $20,000, and Don will invest $10,000.

Opportunity

Problem & Solution

Problem Worth Solving

Our Solution

Integrity Auto Sales provides a unique car buying experience to the customers in the Willamette Valley. We focus on customer satisfaction first. We understand that vehicle purchasing is a necessary but sometimes unpleasant experience. Our goal is to provide enjoyable, honest service by satisfying individual customers practical transportation needs with a quality product.

Target Market

Market Size & Segments

Almost everyone needs a car to get from point A to B. Many families have two or more cars. Due to the recent success of the new car market, there is a large inventory of used cars available for resale. New car sales increased by 24% in October 2001.

4.1 Market Segmentation

Our market segmentation consists of four basic segments: students, retired individuals, families, and singles.

Execution

Marketing & Sales

Marketing Plan

Our marketing strategy focuses on four segments. Those segments are described in the following subtopics. We will implement a strategy that treats customers as a community. This means our marketing resources will center around advertising sales promotions (events) and personal sales (customer service, friendly atmosphere).

The marketing budget will not exceed $6,000 per year.
Marketing promotions will be consistent with the Mission Statement and support the following objectives:
100% customer satisfaction, measured through repeat customers, referrals, and surveys.
To achieve a respectable profit margin within the first three years.
To achieve a healthy net profit by year two.

Students include high school and college-age students who need a safe and economical car. This group is concerned with price, looks, and being cool. These drivers tend to be less educated and will buy on impulse, paying more for less car. They will also buy cars more often than others, on average every two to three years.

The retired group focuses on practicality. Cost may be less important than quality and features. This group wants comfortable, nicely equipped vehicles at a reasonable price. They want a vehicle that will last for years.

Families focus on safe, practical vehicles. They need something that will last for years, can carry groceries, transport kids, and handle long trips. Many are on a budget, and price may be a big factor. They shop around and educate themselves on vehicles, looking for a specific make or model.

The last group is singles. They are similar to students in that they want cool cars but may be working professionals who can afford to pay more for a higher-quality vehicle.

Sales Plan

Sales compensation is based on a percentage of profits. We will invest time and resources into training each member of the sales team and into good customer relations. Salesmen will be paid a portion of their salary based on commission. Good performance is rewarded with increased commission and bonuses. However, integrity will not be sacrificed for sales. Customer satisfaction will continue to be a top priority. All potential sales will be attended to in a timely fashion, and long-term salesperson-customer relationships will take precedence over sales closure.

Operations

Locations & Facilities

The company office is located at 12345 HWY 99, Junction City, OR 97666.
The office is approximately 1,000 square feet and has ample space for the first three years of growth.
The 20,000 square foot lot and building are leased from the principal owner.

Technology

Integrity Auto Sales sells top-quality used vehicles at a competitive price. Integrity buys pre-inspected vehicles wholesale from local car dealers and auto auctions. Integrity maintains a diverse stock of vehicles, providing the widest selection for individual needs.

Vehicles are purchased weekly to add to the current stock. Each vehicle is thoroughly inspected by an ASE mechanic with over 25 years of experience. Only vehicles that pass this critical 26-point inspection are sold on-site.

Integrity Auto Sales sells all types of used vehicles, from sports cars to RVs. We cater to each customer individually to satisfy their practical needs. We buy only the best used vehicles at or below wholesale to bring savings to the customers. Each vehicle is thoroughly inspected by an ASE mechanic with over 25 years of experience. We also offer an auto finding service to customers. If we do not have the vehicle they want in stock, we will find one for them.

Andrew Brooks

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Used Auto Sales Business Plan Example