If you are looking for a sample car dealership business plan template, here is a business plan for starting a new or used auto dealership shop and free feasibility study to use.

To start a car dealership business, you need to consider a number of factors. Chief among these is your plan. This is our main concern in this article as we present you with a car dealership business plan sample.

Why do you need this sample? If you have struggled with writing a real plan yourself, then you’re welcome!

AUTO CAR DEALERSHIP BUSINESS PLAN SAMPLE PDF / DOC

As you read through the entire sample, we will provide you with something to work with. All information contained in this sample is fictional and shouldn’t be duplicated. You need as much information as you can about your business. Your feasibility study will supply you with this. Are you ready? Let’s go!

  • Executive Summary

Eco-Drive is a car dealership that sells only cars considered environmentally friendly. This is the future of automobiles and we are right in the mix of creating a cleaner and better world. We have a partnership agreement with Toyota to open an electric car dealership in Austin, Texas. This is its zero-emission brands of vehicles that will eventually replace its fossil fuel powered cars.

Our preference for zero-emission cars is influenced by the fast changing auto landscape. This is because there is a growing departure for environmentally friendly cars among a young generation of car lovers and environmentalists.

Toyota is currently installing its charging infrastructure across the country. This is at an advanced stage and will be completed next year. Future expansion of this grid has been announced and will be implemented in stages to meet up with the growing desire to switch.

  • Products and Services

Our car dealership business will sell Toyota sedan cars in addition to four wheel and 2 wheel drive variants of its Sport Utility Vehicles SUVs. A 2 year warranty will accompany any car bought from our dealership. This is in addition to the servicing of vehicles when due.

  • Vision Statement

Eco-Drive is positioned to become a major player in Austin. By taking the bold step to venture fully into the sale of purely zero-emission cars, we will dominate the Texan eco-friendly car dealership landscape. Our ultimate target is to be among the 10 major car dealerships in America within 15 years.

  • Mission Statement

Our mission is to provide quality Toyota products to a huge and eager market. To grow our reputation, we are willing to go the extra mile to ensure our clients are satisfied. Our sales team is among the best in the industry. These are skilled in the provision of world class services. We are not in a hurry to make a sale, but are genuinely committed to understanding the needs of our clients.

We treat them on an individual basis and offer the best recommendations after understanding their preferences.

  • Financing

Financing will be sourced through a credit facility to the tune of $5,000,000.00. This will be sourced from 2 major banks and charged at an interest rate still being negotiated. These would be used in renting a sizable business outlet which will house our car dealership. This will include a large showroom as well as offices and a car service section.

  • SWOT Analysis

Understanding our potentials and risks is important to us. This is why we have contracted a major businesses services solutions company to conduct a SWOT analysis. This has noted the following;

  • Strengths

We are one of the few car dealerships in the whole of Texas to venture fully into the sale of zero-emission-only vehicles. We have a strong partner in Toyota. This is a trusted brand that will easily sell and offers some of the best margins of profit in the industry.

  • Weakness

We are likely to experience a lull in activities for some time. This will mean trickling sales or absence of sales and profitability. We expect this not to last beyond 6 months. However in the event it does, it will lead to some losses as our running costs will mount.

  • Opportunities

There is a positive reception to the idea of driving a car that is environmentally friendly. We are riding on this wave of enthusiasm to provide our esteemed clients our prized assets. This positive reception has received a big boost since Toyota announced the launch of these cars in North America.

  • Threats

Threats to our car dealership will come by way of an economic recession. This is not a frequent event, yet when it does happen; it is like a Tsunami that destroys everything in its wake. This will be our major threat.

  • Sales Projection

We are anticipating a sharp rise in sales in the coming years. This will be fuelled by the harsh climatic conditions ravaging the planet. The calls for the adoption of lifestyles that encourage the safety of the environment has reached an all-time high. In view of this, we have projected a three year sales growth that shows the following;

  • First Financial Year $2,000,000.00
  • Second Financial Year $8,000,000.00
  • Third Financial Year $20,000,000.00

 

  • Marketing and Sales Strategy

The brand we represent is reputed for producing quality cars. We will leverage on this advantage by conducting our own marketing campaign. Our products will be displayed at auto shows in Texas. In addition to this, we will get the word out about the existence of our car dealership business. This will include the use of social media and billboards to convey the message.

  • Competitive Advantage

Although a small car dealership, we have the advantage of being one of the few selling cars that are zero-emission compliant. We already have the attention of our market. Therefore we only need to create awareness about our business.

This car dealership business plan sample helps you understand better what is important and should be included. We cannot stress it enough that to start a car dealership, you need to learn about what is involved and what to expect. This gives you an advantage to plan and implement better.

How to Start a Car Dealership Business

Interested in small car dealership business ideas? If YES, here is how to start an automobile dealership with no money and no experience. How much does it cost to start up?

If starting a car dealership business is what you are passionate about, then you are on a profitable business track. Starting a car dealership business is quite easy when one has access to the right information.

Considering the quest for quality cars either new or used might stimulate an attention to starting a car dealership business. Each year, exotic cars are being manufactured to meet up with consumers taste. The cars manufactured needs dealers to sell to buyers that needs them at a location far from where it was being manufactured.

The car dealership business is ideal for those with good business sense. Additionally, a good knowledge of automobiles is highly essential for building successful car dealership. Starting a car dealership business also requires skills which involve a very strong sales background.

A potential dealer should be up for the day-day activities that happens at a dealer store involving checking invoices, interacting with customers and price negotiations.

If you are really interested in starting a car dealership business, this article is written to guide you. You will learn how you can start and its requirements for the operation also, it will comment on the legal requirements to setting up locations and other important factors that will be explained.

Steps to Take in Starting a Car Dealership Business

How much does it cost to own and run a car dealership? As previously noted, there are processes you never can do away with if you are enthusiastic about starting a car dealership business, however, the steps are not burdensome, yet it will only charge you to get things done immediately.

  • Choose the Niche

Starting a car dealership business will require you choose what category of cars you want to deal with. Is your car dealership business limited to only used cars? Or you are only going to deal with new cars? Or are you will be considering dealing with both? Getting answers to these questions tells a start.

The real reason for proper consideration on whether it is a new or used cars is simply because going into new car dealership demands great capital unlike the used one. On the other hand, new cars will generate more income than the used one.

Therefore, investing into new cars dealership will tell you the likelihood of requiring for investors or financial backings from any reputable bank.

  • Write A Car Dealership Business Plan

After deciding on what form of service you are in to, either new or used, you need a business plan that actually will speak for the business. Your business plan should involve everything about your business.

You must be very certain that a very decent and clearly written car dealership business plan is what you must have, most especially, if you will be dealing with new cars. Your investors will want to know how realistic your business model is before pumping in their cash in the business.

  • Get a Surety Bond

You certainly need a surety bond for your car dealership business. This will protect your contract with suppliers, vendors and wholesalers. A surety bond is also capable of safeguarding transactions with other third party you will business with.

  • Get a Liability Insurance

All car dealership requires an insurance coverage irrespective of what types of cars you are dealing with either used or old. Your insurance liability covers property damage and lot coverage.

  • Acquire a License

Starting a car dealership business will also require you to obtain a license. A car dealership license will permit you to sell vehicles throughout the whole year without laying any restrictions on the numbers of cars you can sell.

Also, if a car dealer would want sales activities to fall within consumer’s rights and safety laws, it is also compulsory that a car dealer obtain a license.

  • Obtain Sales Tax Number

You need a tax number you can be identified with to avoid embarrassment and to be sure you are a legal and qualified car dealer. The process for obtaining this might be different from country to country.

  • Establish the Proper Location

You should pick a location that will affect your business positively. Don’t choose a location that will limit your exposure to potential customers.

You should consider a road frequently plied by vehicles, seek for locations at intersections, high traffic roadway. In fact, securing a location at the peak traffic flow is a sweet spot location.

  • Stock and Manage Your Inventory

After acquiring a befitting location, the next point is to stock your inventory with cars. Will you be dealing with just a single model or multiple models? Which company would you love to meet and thereafter partner with them?

These are what must be known, so as to get cars stocked in your inventory. Although your target market will influence what you will have in your inventory.

Managing your inventory properly is also very important. Don’t get customers frustrated by saying “not available”. Therefore, investigate into what the present trend to see what you can fill your inventory with.

  • Advertise Business

Advertisement today is as important as a business. If your business gains popularity, high record of sales can be accurately predicted. Advertising online is made easy. You can have it done on blogs, social networks and on websites.

  • Pay the Required Fees and Adhere to Rules in your Location

How much does it cost to get a used car dealer license? All the fees required by you from the state and country must be paid to avert regular disturbance or restriction on business activities.

Abide by all rules made by the country where you intend on starting a car dealership business.

Conclusion
All these steps should take you through starting a car dealership business. However, you might also consider it rewarding to interact with already established dealer on how to effectively run the business now that you have known how to start.