A Basic Guide to Starting a Car Dealership

According to Comparably.com, the average car dealership owner’s salary is $97,790. Yet, some are hitting just under $500,000 per too! So it seems there is a world of opportunity out there if you wish to get into the business.

But how do you go about starting a car dealership? Are there some clear steps you can take to set up shop?

Well, yes there are, and in this post, we’ll run you through a few steps to get you started. We’ll keep this post short and to the point. This way you’ll have the fundamentals to hand and you can segway off into more expansive research.

Will You Have a New or Used Car Dealership?

You should first make a clear decision on whether you want to sell new or used cars when starting a business dealing in cars. Selling both when you first get started can be quite confusing as the processes will be different.

So if you don’t want a lot of extra work and confusion on your plate, pick your poison! Also, some good business advice is to consider that if you are going to sell new cars, the initial investment into the business will have to be a lot larger. Yet you may get bigger margins when selling new and a lot of support from car manufacturers too.

Get Your Business Plan in Order

You’ll need to develop a good business plan for your prospective dealership once you’ve decided whether to sell use or new automobiles. This is especially true if you require financial assistance. 

You’ll then need to consider things like will you offer only one brand or a variety of brands? It’s also crucial to mention in the company strategy the potential of selling a combination of new and used cars down the line.

Choose Your Location

You’ll make more sales if the populace is greater where you choose to set up shop. The visibility of your dealership is also important. Customers will be less likely to visit your lot if it is located on a side street or located fair from the main road.

A corner site near a major crossroads could be ideal, or on a roadside with high traffic. There’s also the issue of competition to consider. And you might find it interesting that many shoppers like dealerships next to each other so they can compare more cars.

Look Professional From the Start

Like many other things in life, first impressions count with businesses like car dealerships. So, it’s important to invest in the aesthetics and functionality of your business.

For example, a commercial garage door opener is an excellent touch that may impress people passing by. And think, when you invest in a car dealership garage door like this, it makes working much easier. 

Another aspect that you could focus on is a bold yet complementary color scheme. Plus, think of what type of message you want to send out with the layout of your showroom.

The Basics of Starting a Car Dealership

We’ve now run you through some of the fundamental steps for starting a car dealership. There are many other considerations you will have to deal with such as insurance and licensing, which you can look at once the basics are in place.

So thanks for stopping by and good luck! Also, if you want more tips and advice check out our blog.


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