Selling Cars in the UAE is not an easy job. The way that you sell cars differs greatly to the way you sell other products.
Here are 5 Essential Principals for Selling Cars in the UAE.
1. Sell the Right Vehicles
It may sound obvious, but this point cannot be overstated! The first and most important principal that all car dealers in the UAE need to do to be successful is to sell the right vehicles. You need to sell vehicles that customers know and want.
Before you consider selling cars in the UAE it is important that you research the market and see what cars Emiratis are buying and at what price. Once you get your head around what cars customers are looking for, try to find avenues to purchase those vehicles to sell at a profit.
The key to making a strong profit on a vehicle sale is limiting your acquisition price. The only way that you are going to source cars at a cheaper price is to get creative with your vehicle acquisition strategy.
Try to avoid attending vehicle auctions or using online websites, the reason being is you have to compete with other buyers. The more interest there is for a car, the more you will pay. Look for different ways to source your vehicle stock, whether that be direct from a manufacturer or simply reaching out to your past customers to see if they are or know anyone who is looking to sell.
Related Article: How Car Dealers in the UAE Can Source More Vehicle Stock in 2022.
2. Understand the Customer
The key to selling in any industry is understanding the customer. To be successful selling cars in the UAE you need to understand each individual customers wants and desires and create a proposal that suits their individual needs.
When a potential customer attends your dealership, make it your mission to find out as much about them as possible. See what they are looking for, hear any concerns they may have, understand their buying position, and more importantly ask them about their spending budget. This way you can point them in the direction of a vehicle that fits their needs and meets their price expectations.
3. Select the Right Price
Your vehicles pricing will make or break a sale. The only way that you are going to be successful selling cars in the UAE is to offer the best and most competitive vehicle pricing.
Potential car buyers spend hours online researching for different cars to buy. They will short list a variety of cars that they are interested in and will begin their buying journey. When they shortlist a handful of the same car, how will they choose what car to buy? They will choose the cheapest option.
Before you begin pricing your vehicles it is important that you research the current market pricing and what your competitors are charging. Once you have that information, select a good price point that is competitive and will provide a strong profit margin for your dealership.
4. Adapt to the Customer
To sell cars or anything for that matter, you need to adapt to each individual customer. What one customer wants will differ from the next, in saying that you need to adapt your proposals for each customer that walks through your doors.
This is where point number 2 becomes so important. The only way that you will be able to adapt to a customer is by understanding more about them. You need to accurately understand what they want, their limitations and how much they are looking to spend in order to create an individual car sales proposal for them.
5. Understand Government Compliance Laws
To sell Cars in the UAE there are compliance laws that you will need to adhere to. Firstly, to sell cars in the UAE you will need to obtain a commercial license. You can apply for a commercial license directly through the official RTA website. It is important that you understand how you want to sell cars as license differ.
Secondly you need to be aware of VAT requirements. Many dealers make mistakes during the VAT compliance process, largely because car dealership VAT differs greatly to everyday VAT. Before you start selling cars it is important that you understand car sales VAT and how it applies to you.
Selling Cars in the UAE is much different to selling everyday products. The 5 principals presented are essential for selling cars in the UAE in 2023.
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