Owning a car lot can mean a big profit if you sell a lot of cars. If there are people who don’t know how to drive the cars when they take them on a test drive or there is damage caused by weather to the cars, then you will probably have to spend more money getting our inventory fixed than you will selling them.
One option is to get open lot insurance. This is a type of insurance that is often separate from your personal policy. It allows you to protect the inventory that you have on the lot in the event that anything does happen. Most policies that cover an entire car lot will pay for damage done by anything ranging from weather to someone hitting the car with their vehicle while in the lot. When you have a large dealership, you will need the coverage because there is probably thousands of dollars of inventory that needs to be protected. As you sell each car, you can remove it from the policy. If you don’t add another car, then the policy rate will usually decrease. The insurance will usually only cover the damage to your vehicles and not to the vehicles of someone else.