The Lexus is a luxury car manufactured by Toyota. One of the most popular car manufacturers in the world, Toyota makes many different versions of the Lexus. Entering the realm of car dealerships is an extremely competitive and extensive journey, especially when it comes to high-income vehicles, such as Lexus. Making your dealership appealing to customers while still making a profit is one of the most difficult challenges.
Develop extensive experience selling automobiles. This can be done as either a dealership manager or car salesman. Having five to 10 years in the industry is crucial to understanding how car selling and running a dealership work. It is important to understand warranties, servicing, and repair and car specifications. Consider owning a smaller dealership that sells used vehicles before working your way up to new Lexus cars.
Search for a Lexus franchise opportunity. You can purchase a franchise from Lexus, or Toyota, directly or by acquiring a franchise from an established Lexus dealership. Use a dealership broker if necessary to find the right opening for you. Refrain from taking an established franchise that does not sell Lexus vehicles and transforming it into a Lexus facility. Check with Toyota before taking this step because franchise opportunities are monitored and limited by the company. Regardless of your choice, you must be approved by Lexus to sell cars at your dealership.
Contact Lexus and inform them of your franchise decision. You will need to submit a few pieces of basic information to the company so they may run a background check. This includes, but is not limited to, your Social Security number, address and criminal history. If you are a felon or have outstanding warrants, the chances of you running a dealership are slim to none. Once the analysis is complete, Lexus will approve or deny your request to operate a dealership.
Gather the needed money to purchase the franchise. Costs range from hundreds of thousands of dollars up to $20 or $30 million. Make sure the franchise financial obligation is not too much for you before buying the property. A down payment of 15 percent is needed before you can call the franchise yours. Once business picks up, you will be making back much of the franchise down payment, so do not fret about an immediate drainage of funds.
Prepare for your first shipment of vehicles. Depending on your franchise, these may be new or used cars and can be shipped from any Lexus distributor or another dealership. Lexus will arrange for the shipment to arrive, so wait for this before opening your dealership. Make sure you have a certified sales team on hand to attend to customers interested in buying.
Ensure you have the proper funds to start a car dealership. It takes a great deal of money and time to run a successful business.
Keep up with any and all recent vehicle recalls. Selling recalled cars may cost your dealership big money.
Corey Morris has been writing since 2009. He has been a reporter for his campus newspaper, "The Rotunda" and is the publication's news editor. His work focuses on topics in news, politics and community events. He is pursuing a Bachelor of Science in political science and mass media from Longwood University in Farmville, Va.