Selling a used car is one thing. Making a profit is another.
The key is to control your costs, choose vehicles carefully, and understand what customers want.
1. Know Your Total Cost
Before buying a vehicle, calculate the complete cost.
This can include:
- Vehicle price
- Inland transportation
- Inspection
- Export costs
- Shipping
- Insurance, where applicable
- Customs duties and taxes
- Port and clearance costs
- Repairs and preparation
- Advertising
A car that costs US$8,000 in Japan will cost more by the time it is ready for sale in Guyana.
Calculate the total landed cost before you buy.
For imported vehicles, the GRA’s current tax rules vary according to factors such as vehicle age, engine capacity, type and other classifications.
2. Choose Vehicles People Want
A cheap vehicle is not necessarily a profitable vehicle.
If customers are not interested, the car may stay in your inventory for a long time.
Before buying, consider:
- Popular models
- Customer budgets
- Engine size
- Fuel type
- Fuel economy
- Spare parts availability
- Maintenance costs
- Resale demand
The goal is not simply to find the cheapest car.
The goal is to find a car you can sell at a reasonable price.
3. Calculate Your Profit
For example:
Total cost: US$10,000
Selling price: US$11,500
Gross profit: US$1,500
But this does not mean your final profit is US$1,500.
You may still have business expenses such as rent, advertising, staff, repairs and other operating costs.
Always separate gross profit from net profit.
4. Watch How Long Cars Stay in Stock
Profit per vehicle is not the only thing that matters.
For example:
Car A: US$2,000 profit, sold after 5 months
Car B: US$1,000 profit, sold after 1 month
Car A has the higher profit per vehicle, but Car B returns the money faster.
This is why dealers should also monitor inventory turnover and how long each vehicle remains unsold.
5. Don’t Put All Your Money Into Inventory
Buying more cars does not automatically mean making more money.
If too much money is tied up in unsold vehicles, you may have less cash for:
- Repairs
- Shipping or port costs
- Advertising
- Unexpected expenses
- Your next vehicle
Keep some working capital available.
6. Use Online Marketing
You do not have to rely only on customers visiting a physical yard.
You can promote vehicles through:
- Your website
- Online marketplaces
Good listings should include clear photos, price, mileage, engine size, transmission, condition and contact information.
7. Consider Order-Based Sales
Another option is to find the customer before sourcing the vehicle.
For example:
Customer gives their budget and requirements
↓
Dealer finds suitable vehicles
↓
Total cost is calculated
↓
Customer agrees to the terms
↓
Vehicle is sourced and imported
This can reduce the amount of money tied up in unsold inventory.
For a vehicle from Japan, the customer can specify things such as:
- Budget
- Brand
- Model
- Year
- Engine size
- Mileage
- Colour
- Vehicle type
8. Build Customer Trust
Clear information can help customers make informed decisions.
Explain what you know about:
- Vehicle condition
- Mileage
- Previous damage, where known
- Inspection information
- Total price
- Additional costs
- Warranty terms, if offered
Good customer service can also help generate repeat business and referrals.
9. Track Your Numbers
Keep records of:
- Vehicles purchased
- Vehicles sold
- Purchase costs
- Selling prices
- Gross profit
- Business expenses
- Inventory days
- Available cash
For example, selling four vehicles with an average gross profit of US$1,000 gives:
4 × US$1,000 = US$4,000 gross profit
But operating expenses still need to be deducted.
Final Thoughts
Making money in the used car business is not simply about buying cheap and selling high.
It is about:
Choose the right vehicle
↓
Calculate the complete cost
↓
Set a realistic selling price
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Market it properly
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Sell within a reasonable time
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Control expenses
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Reinvest and grow
For vehicles imported from Japan, checking the complete import cost before purchase is especially important.
Looking for Japanese Used Cars?
If you are a used car dealer in Guyana looking for vehicles from Japan, JTG Export can help you source vehicles based on your budget, preferred models and customer requirements.
Contact us to discuss sourcing Japanese used cars for your dealership.
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