new car dealership

How to Open a New Car Dealership

Introduction

New car dealerships sell brand new automobiles as opposed to used cars. Successful dealerships can generate high profits but they are hard to begin and market. Dealerships are open long hours every day so be prepared to work hard. New car dealerships need to carry a wide variety of cars to cater to all different types of customers. New car dealerships require a lot of start-up capital which can be difficult to come by.

Difficulty: Difficult

Instructions

Step 1

Decide on a plan for your business. Figure out what your hours of operation will be. Set up a budget. Choose a car company whose automobiles you will carry.

Step 2

Find capital. It takes a lot of money to open a new car dealership. Many automakers require you to have hundreds of thousands of dollars available. If you do not have enough money, look for investors. If you have a great business plan that looks like it will yield profits, investors will give you the financial backing that you need.

Step 3

Set up a contract with the car company of your choice that you can afford. Choose the automobiles that you will carry in your dealership and order them.

Step 4

Pick a location. An old car dealership can work well if the reason it went out of business wasn’t its location. Car dealerships can thrive in populated suburbs because there are many drivers there. Make sure there are no dealerships in vicinity that are selling the same brand as you. Otherwise, it is fine, and even encouraged, to be near other non-competitive dealerships.

Step 5

Apply for any necessary licenses in your locale. Ask your state’s Department of Motor Vehicles about what the requirements are for licensing.

Step 6

Make your dealership stand out. Buy bright color cars and arrange them artistically. Educate yourself and your staff on the different makes of the cars and what additional colors each car style comes in. Hang up flashy car posters around the inner offices of the dealership.

Step 7

Market your new dealership. Take out an ad in the newspaper advertising your grand opening. Post fliers in local gas stations and mechanic shops. Hang large and colorful posters that list special opening sales in the front of the dealership to attract customers.