Anderson Affordable Auto | Application Preview
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General Information
Business Registration Number: 201804261255202
Location: ANDERSON, IN, United States
Length of Operation: 0
Number of Employees:
Annual Gross Income:
Annual Gross Expense:
Open to Loans: YES
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Funding Usage
Leasehold improvements $15000, capital equipment $5500, legal fees $5000, down payments for utilities/insurance/phone etc. $1500, buying and repairing starting inventory $50000, street promo material $500, reserve $12500.
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Business Plan
Our short-term goal is to sell five new cars per month in addition to reselling the cars that have come back to us due to loan default. Our mid-term goal (Year Two) is to maximize the lot in Anderson by selling the greatest number of cars with our size limitation. We then plan to open a second Indiana shop, which will allow us to reach a new market. Our five-year goal is to have six to eight stores in Indiana, so that we can be reached easily in every part of the state. By that time, we plan to be exploring neighboring states, such as Kentucky or Ohio, with the intent of replicating the business model regionally. Our business plan is innovative and sound. Even our worst-case profit for Year One is $25,000, and that is after paying back our loan each month. Our marketing plan is very inexpensive. Our competitors are risk-averse and rely on outdated and illogical business models.
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Self Identified Competition
A. Anderson Auto Plaza B. All American Auto Brokers C. Jamerson Auto Sales The biggest problem faced by used-car customers in lower income brackets is inability to afford down payments. Most used car dealers require between 25-50 percent down and add high finance charges to the balance. We ask roughly 12 percent down and charge no interest. Other local used-car dealers are not willing to incur this risk. They fear the car will be damaged before their investment has been met. We tolerate risk through high-volume sales. Our average selling time while employing the above strategy as a private seller is only four days! Meanwhile, similar cars are seen sitting on local lots for months.
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Contact Applicant
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