How to Become an Aftermarket Parts Dealer

The increasing demand for more affordable auto parts has made aftermarket parts highly sought-after products. As a result, a lucrative market exists for those who want to become aftermarket parts dealers. Becoming successful as an aftermarket parts dealer requires proper planning and effective marketing strategies.

1. Obtain all the required permits and licenses for your business. Consult your local city or county clerk's office for questions regarding business name registration and obtaining your licenses and permits. You will also need to contact the Internal Revenue Service (IRS) to obtain your Employer Identification Number.


2. Create a good business plan that explains your goals for your aftermarket parts business. For example, emphasize your intentions to expand the business and methods you'll use to boost your profits. Also, state your monthly expenses as well as predicted cash flow. To learn how to write business plans, visit the website of the Small Business Administration.


3. Obtain your start-up capital. You can obtain the start-up capital for your business by applying for a loan at a bank or credit union. Visit the Small Business Administration's office in your area and inquire about obtaining loans and financial assistance for your aftermarket parts business.


4. Find an appropriate location to set up your store and stock your inventory. Set up your aftermarket parts store in a heavily populated area if you can. This will generate streams of customers to your store. You can rent, lease, buy or build a store. Make sure your store location is easily accessible.


5. Buy equipment and supplies you need to run your business. Purchase office supplies such as computers, phones, printers, fax machines, filing cabinets, calculators and a cash register. Also buy inventory software for keeping track of the parts that you receive and the parts that you sell.


6. Establish relationships with companies that make the auto parts you want to sell. Contact manufacturers of auto parts that you want to sell and inquire about becoming a distributor or dealer of their products. You can go online to find these companies or search the magazine and newspaper ads. You can also find out what brands your competitors carry and contact the manufacturers. 


7. Advertise your aftermarket parts business. Place advertisements in your local newspapers, phone book and shopping guides. Prepare fliers and have them distributed to places where lots of people can see them, such as supermarkets, laundromats, car washes, gas stations, community centers, libraries and wherever advertising materials are allowed. Set up your business website and include your business name and contact information. Consider joining local networking groups and attend networking meetings. Introduce yourself and hand out your business cards.