Business ideas
15 min read

10+ Best & Profitable Used Car Business Ideas in 2023

For those looking to kickstart their own business, but are unsure of the right avenue to pursue, used car business ideas can be a great option. With the right strategy, this can be a highly profitable industry with the potential to generate consistent income. Whether you’re looking to start a large-scale enterprise or merely a small project in your spare time, there are various options available. In this article, we will explore some of the best and most profitable used car business ideas that you can consider in 2023. From salvaging and fixing cars to reselling cars and providing transportation services, there are a plethora of choices for any aspiring entrepreneur. By the end of this article, you will have the insight and knowledge needed to capitalize on the used car market in the coming year.

Written by:
Updated on:
April 2, 2023
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Table of Contents:

Our List of 10+ Best Used Car Business Ideas:

1. Used Car Dealership.

A used car dealership is a business that buys and sells pre-owned vehicles to its customers. This can be a great business idea as it allows customers to purchase a vehicle at a lower cost than they would if they were buying new, while at the same time providing an opportunity for the business owner to make a profit. Some of the advantages of starting a used car dealership include:

  • Lower overhead costs than when starting a new car dealership
  • Ability to offer more variety in vehicles
  • Potential for higher profits as used cars are typically sold for less than new cars
  • Less competition as there are fewer used car dealerships compared to new car dealerships
  • Opportunity to specialize in certain types of vehicles

2. Auto-Body Repair And Refurbishment.

Auto-body Repair and Refurbishment is a business idea that offers customers the ability to repair and refurbish their vehicles. This includes repairing damages incurred from collisions, installing new parts to replace malfunctioning ones, restoring vehicles to their original condition, and providing additional enhancements such as custom paint jobs. Customers may also choose to have a particular feature of their vehicle completely replaced with a new one. Benefits of this type of business include:

  • It can be beneficial for both customers and businesses.
  • The costs associated with repairs are typically less than replacement parts.
  • The cost for refurbishing is usually cheaper than buying a new car.
  • The customer receives a better-looking car at the end of the process.
  • The customer saves money on high-end repairs thanks to refurbishment.

3. Car Rental Business.

A car rental business is a service that offers customers the use of a vehicle for a short period of time. This is typically done on a daily, weekly, or monthly basis and often involves the customer picking up and dropping off the car at the business's location. Car rental businesses make good business ideas because:

  • They offer flexibility, with different types of vehicles available to rent.
  • They provide convenience, as customers do not need to own their own vehicles.
  • They have low overhead costs and require minimal start-up capital.
  • They have potential to be profitable; customers pay for each rental, providing ongoing revenue.

4. Auto Window Tinting.

Auto Window Tinting can be a great business idea for anyone looking to make a living in the automotive industry. Auto window tinting is the process of applying a thin film to automotive glass to reduce heat and glare, and provide privacy to drivers. This process can be done for both the interior and exterior of a vehicle, and offers many benefits to customers including: • Increased protection from UV rays, which can cause fading and damage to car interiors• Reduced glare while driving, improving overall visibility• Added privacy while driving as well as when parked• Additional style options with different shade selections

5. Car Detailing And Cleaning Services.

Car Detailing and Cleaning Services is a business idea that involves a range of services for cars such as washing and waxing, removing scratches, and cleaning the car's interior. This business idea has several advantages, including:

  • Provides a much needed service to people who take pride in their vehicles
  • Can earn a steady income
  • It requires minimal upfront costs
  • Can serve as an additional source of income for existing businesses
  • Allows you to set your own hours and work whenever it is convenient for you

6. Used Car Parts Business.

Starting a used car parts business can be an excellent way to make money. Used car parts are relatively inexpensive and can be resold for a profit, often with little to no overhead costs. The market for used auto parts can be highly competitive, so those looking to open such a business should have a good understanding of the industry and the strategies for competing in it. Here are some of the benefits of starting a used car parts business:

  • Low startup costs
  • Wide range of customers
  • Flexibility - you can easily add or subtract inventory
  • Little to no employee costs
  • Opportunity to target customers directly through digital marketing

7. Auto-Parts Resale Business.

Auto-Parts Resale Businesses are businesses that offer used, refurbished, and aftermarket auto-parts to customers. This type of business is attractive because it can be started with relatively low start-up costs, yet can still generate a profit. Here are some of the reasons why this could make a good business idea:

  • The cost to set up shop is relatively low.
  • There is an evergreen demand for used auto-parts.
  • Many of the products can be sold at a premium compared to new parts.
  • It provides a great service to customers not only looking for cheaper alternatives but also specialty parts that may not be available elsewhere.
  • The market share can easily be increased by expanding the range of parts offered.

8. Tire Sales And Installation Services.

Tire Sales and Installation Services is a business idea that provides customers with new tires, as well as the installation of them. This is a great business idea because:

  • It meets a specific need in the marketplace
  • Can provide a reliable source of income
  • Good potential for growth
  • Low startup costs
  • Potential for partnerships with other automotive businesses

9. Car Upholstery Services.

Car upholstery services provide a way to repair, maintain, or replace the fabric or cushioning of car seats, door and roof trim, or car interiors. This is a great business idea for a few reasons. Some of these include:

  • Cars need regular maintenance and upkeep, and car upholstery services provide this.
  • Many people have custom leather seats and other fabrics which require specialized knowledge.
  • It’s a tangible service that many customers can appreciate the value of
  • It's relatively easy to get started with minimal overhead costs
  • The demand for vehicle repairs is generally steady year-round

10. Mobile Mechanic Business.

A Mobile Mechanic Business offers on-site automotive maintenance and repair services. It is a great business idea as it has numerous advantages including the ability to reach out to customers, increased availability, convenience for customers and cost savings. Here are some of the benefits of starting a mobile mechanic business:

  • You can reach customers at their homes or workplaces during times that are convenient for them.
  • You can provide services beyond traditional operating hours when most mechanics are closed.
  • You can take your business wherever you want, providing services on the go.
  • Customers don’t have to worry about transporting vehicles to garages or waiting in queues for their turn at a garage.
  • Mobile repair services often cost less when compared with conventional auto repair shops.
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Successful Examples of Used Car Businesses:

The success of a company can be measured in its profitability and longevity. Below is a list of successful companies in the used car business industry:

  • CarMax
  • Carvana
  • AutoNation
  • Vroom
  • Carmaxx Auto SuperStore
  • CarGurus
  • Enterprise Car Sales
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