The car dealership business has many income streams. Most people focus on sales and servicing. They miss out on another huge auto industry to profit from. Typically, the car restoration business is typically reserved for professionals who specialize in that niche. If you are running a car dealership, you might want to consider putting your service department to work restoring old vehicles and covering not just the new and used markets, but the specialty restoration one as well.
Car Restoration Market
Classic cars have been slowly making a comeback over the past several decades. As baby boomers age and finally have the disposable income to buy their dream cars, they are looking for professional restoration mechanics to recreate the car of their dreams. This can be a very expensive proposition with low overhead for those who do restoration correctly; it’s all about the sweat equity and knowledge.
Dealership Businesses Working Smarter
Car dealership sales have all but gone flat since the beginning of the year, which has many dealerships trying to find a niche to make their dealerships something other than just a sales center. Sure, dealerships are born out of sales for both new and used vehicles, but any automotive business that disregards the profit that can come from the service center is not only missing the boat — they are missing out on the bottom line.
Increase Dealership Revenues
For someone who is looking to take it one step further by creating a lucrative service and sales center, car restoration might be the key component to making huge revenue. Car restoration takes specific things. It takes the know-how of trained restoration people, space, and the ability to supply parts. Those are all components that are typically found in the service center of any dealership around the country. The key is to maximize the potential of your connections and make full use of what you already own and operate.
Many high-end dealerships are working on things like restoration and pre-certified or overhauled vehicles that come with a stamp of approval and a guarantee, but you don’t have to operate a high-end BMW or Porsche outlet to reap the benefits of restoration. Any Richmond dealerships with the necessary components can profit from taking junk and restoring it to classic condition.
Investing In Specialize Talent
There is no denying that restoring isn’t like other types of auto service. It takes specific knowledge and tools to be able to take a rusted-out shell of a car and make it come to life again. But if you can retain the talent and have all the necessary ingredients, making a name for yourself outside of just sales and service can be extremely profitable.
Raise Margins On Trade-Ins
Another reason that a dealership service center might make an excellent place for restoration is that they are constantly inundated with “trade-ins.” Not many trade-ins are worth it to fix up and sell, so they end up at auto auctions. But when a late-model car does come by for a new car trade-in, it’s a good idea to have the means to either store it for a bit until it becomes something nostalgic or to fix it up and make it something spectacular. When you already have the means, why not maximize them to the fullest?
Stay Ahead of The Auto Business
The key is to spot trends in restoration. It isn’t just about waiting decades; it’s about being able to spot trends in the automotive industry that aren’t common but are easily fixable, and that you can get your hands on. Every generation has their idea of what a “classic” car is. Knowing how to head up the newest restoration trend is key to being able to spot the next renovation project and not just buying the car, but knowing when to fix, when to buy, and when to store.
Restoring classic cars is a niche market all its own that continues to grow as the population ages and has more disposable income to buy the car that they have always wanted. If you already have the mechanics available, space, and the tools to go one step beyond, you would be foolish not to maximize your dealership business to cover all niche markets, including classic car restoration. Servicing vehicles is important to your revenue.