When you are considering starting a new business in Wales, you must look at the current market before making any kind of decision. While there are many Welsh industries that are booming right now, there are others that just might not be worth your time or the investment.
Here, we are going to look at whether it is worth starting a car dealership in Wales in 2020. Keep reading to find out more.
The market today
There are currently 1.5 million licenced vehicles on the road in Wales, according to government data. The population in Wales is only 3.139 million people as of the 2018 census, which suggests a large percentage of people in Wales already own a car or even two.
When looking at the current market for starting a car dealership, it is important that you spend some time looking at recent stats. In January 2020, it was found that the demand for new cars dropped by 7.3% in the UK. This indicates a drop in the number of people who want to buy brand new cars and so it might be something to consider.
The sale of petrol and diesel models was also down from the previous year, which could indicate that alternative-fuelled vehicles might be the better option.
Starting a dealership
While the sale of new cars might have been down in January, this does not mean that it is not worth starting a car dealership in Wales in 2020. January is typically a quieter month for retail and so there is a chance that this will pick up.
However, since the fall in the sale of new cars has been more pronounced than the trend for used vehicles you might want to opt for a used car dealership if you do decide to launch this kind of business.
You might also want to consider specialising in alternative-fuelled vehicles, as demand for these vehicles is increasingly much more quickly than their petrol and diesel counterparts.
Whichever kind of dealership you decide to go for, though, it’s important that you make sure you have traders insurance in place before you start buying and selling cars. You can find traders insurance online so make sure to get some quotes before you get started.
While January was not a great month for those hoping to sell a lot of cars, there is still hope for those who want to start a car dealership in Wales in 2020. The number of people living in this country and the cars on the road already suggest that this could be a good market to get into.
If you have an interest in cars and are hoping to make some money then we suggest that you take on board the advice that we have given you in this article. Think about the kinds of cars that you will see and don’t forget to get the right kind of insurance.