Tuesday, June 3, 2014

How To Open A Car Dealership

How to Open a Car Dealership

FACT: No matter what the economy is like — good or bad / fast or slow, the general people will almost always need cars, trucks, vans and various other vehicles for their means for transportation. And guess what? Most will go to their car dealerships to buy or finance their vehicles. Therefore, opening a car dealership can be a successful business venture.

However, being a car fanatic or knowledgeable person about cars is just one of the numerous ingredients you'll need to make your car dealership a profitable business; you'll also need the entrepreneurial & managerial skills to successfully manage your inventor and staff, as well as attract new clientèle.

Read the following educational steps to learn how to open a "start-up" car dealership.


  1. Open a Car Dealership Step 1.jpg
    Decide whether you want to buy an existing car dealership or open a new one.
    • Buying an existing car dealership might require a bigger investment, but if so — you'll also gain all of the company's resources; including distributors, suppliers, staff, reputation, and existing / local customers.
    • Opening a car dealership from scratch might require an extensive array of planning, but it also allows you to develop a business system and reputation of your own.
  2. Open a Car Dealership Step 2.jpg
    Determine what the competition is in your area.
    • Examine how your local & nationwide competition attracts customers; how / where they advertise and what types of advertising, marketing, and/or promotions they do.
  3. Open a Car Dealership Step 3.jpg
    Construct a contemporary business plan.
    • Decide on whether to sell used or new cars, or both — and what types of financing you need to offer customers.
    • Choose whether to focus solely on one brand of cars or sell multitude brands.
    • Determine how much your garage, lot or venue will cost.
    • Estimate the costs of necessary business equipment — such as computers, fax machines, printers, phones and other office supplies.
    • Research how much capital you'll need to purchase your inventory and keep your dealership in stock.
    • Decide how many creative, loyal, motivated & skillful team of employees you need — and how much you'll pay them per year. [Higher the salaries usually means the better the employees.]
    • Determine how much you'll need to set aside for taxes, insurance, accountant, and many other legal & permit costs.
    • Estimate the costs of sales agreements and lease agreements by requesting quotes from accountants / lawyers who draw up these types of contracts.
    • Plan a budget for advertising, marketing & Social Media outlets to promote your business.
  4. Open a Car Dealership Step 4.jpg
    Raise the necessary capital to open a car dealership.Speak to your local banks about a business loans and/or find private investors (or politicians) who are willing to fund and support your car dealership.
  5. Open a Car Dealership Step 5.jpg
    Inquire about the legal requirements for opening a car dealership. Most states require some form of authorization, license or permits if you sell more than 5 vehicles per year and therefore, will also require you to provide a dealer registration w/ dealership plates and.or temporary tags & titles dfor vehicles you sell.
  6. Open a Car Dealership Step 6.jpg
    Get the venue for your car dealership. Make sure it's at a location that offers plenty of visibility and traffic to draw customers to your business.
  7. Open a Car Dealership Step 7.jpg
    Purchase your inventory.

  8. Open a Car Dealership Step 8.jpg
    Create your cash sales and finance agreements, buyer's guides, and other pertinent documents.
  9. Open a Car Dealership Step 9.jpg
    Hire experienced, motivated & self-sufficient employees that understand your underlying goals w/ professionalism & sales techniques that represent your company.
  10. Open a Car Dealership Step 10.jpg
    Advertise your car dealership in local papers and magazines, as well as online, on the radio and television.
    CarGurus ads feat. US Auto Wholesalers on the New York Daily News
  11. Open a Car Dealership Step 11.jpg
    Open your car dealership.


No comments:

Post a Comment

"Be as smart as you can, but remember that it is always better to be wise than to be smart."

Related Posts Plugin for WordPress, Blogger...