“I got $5, take it or leave it.”
An entrepreneur says his car dealership’s inventory has exploded since opening. James McGhie (@manic_mcgoo) is the owner of The Used Car Factory in Salt Lake City, Utah. In a recent TikTok, he shares how his little fun project turned into a whole operation.
On TikTok, McGhie confesses he has a problem. “Alright this has completely gotten [expletive] out of control,” he begins. “I started a car dealership since I wanted to buy more racecar parts and do fun hood rat [expletive] with my homies,” McGhie adds. However, his dealership turned out to be much more than he intended.
“And now, we have 250 [expletive] cars,” he concludes, scratching his head.
Commenters were supportive. Some even made offers to help McGhie get rid of some inventory.
“I got $5, take it or leave it,” one joked.
“Good problem to have,” said a second. “Oh I’m definitely not complaining,” McGhie replied.
It always seems like a good idea to start your own business. The flexibility and freedom of not reporting to a boss is enticing for many. However, is starting your own car dealership a smart idea?
While the TikTok may have seemed like McGhie simply started a car dealership to buy car parts, a lot of thought usually goes into starting a business.
According to LivePlan, here are five that need to be carefully considered and done before selling your first vehicle:
Considering all these requirements, starting a car dealership shouldn’t be viewed as a simple side hustle. It’s also a risk: 21% of businesses in the US fail in the first year, LendingTree reports.
While owning a dealership can be profitable, you should be aware of the risks. For instance, McGhie ended up with 250 cars in his lot. That’s a lot of inventory. If he doesn’t sell enough, he could risk going into debt to keep the business going.
Owning your own car dealership requires time, energy, and resources. If you are up for the challenge, it can be a lucrative business. It can also be a financial disaster—it all depends on you, the market, and the consumer.
Motor1 has contacted McGhie via Instagram direct message and TikTok direct message. We will update the story if he replies.
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