Content

• Steps
• Tips
• Warnings

It doesn't matter what the economy is in, people will always need cars, trucks or other vehicles, and most go to a car dealership to buy a car. Opening a point of sale for cars can be a successful business venture. However, knowledge of cars is only one of the ingredients you need to make your car dealership profitable; you will also need skills to successfully manage your product and staff, and attract a clientele. Read the following tips to find out how to open a car dealership.

Steps

1. 1 Decide whether you want to buy an existing car dealership or open a new one.
   • It may take more money to buy an existing car dealership, but you will also get all the capabilities of the company, including suppliers, staff, reputation and customers.
   • Starting a car dealership from scratch will take a lot of planning, but it will also allow you to develop your way of doing business and your reputation.
2. 2 Identify competitors near you.
   • Study how competitors attract customers; where and how they advertise themselves.
3. 3 Develop a business plan.
   • Decide which cars you want to sell, new or used, or both, and what type of financing you should offer clients.
   • Decide whether to focus on just one brand or sell a variety of brands.
   • Decide how much you will have to pay for the area for your car dealership.
   • Calculate the costs of the necessary equipment: computers, printers, telephones and other office supplies.
   • Research how much capital you need to buy new or used cars. To do this, you can talk to car manufacturers and research used car prices.
   • Decide how many employees you need and how much you will pay them per year.
   • Determine how much money you need to set aside for taxes, insurance, accountants, and legal expenses.
   • Estimate the cost of sales and purchase agreements and leases. This requires an assessment of the lawyers who deal with such contracts.
   • Plan your marketing budget to promote your business.
4. 4 Raise the necessary capital to open a car dealership. Take out a bank loan to start a business or find private investors who would like to finance your auto sales outlet.
5. 5 Learn about the legal requirements for starting a car business. Most countries require some kind of permit if you sell more than 5 vehicles per year. You will also be asked to show the temporary license plates of the cars you sell.
6. 6 Decide where you want to open your car dealership. To attract clients to your business, make sure it is a prominent location with easy access.
7. 7 Purchase a product.
8. 8 Draw up sales and lease agreements, buyer's guide and other required documents.
9. 9 Hire people who understand your sales method and will be excellent representatives for your company.
10. 10 Advertise your car dealership in local newspapers and magazines, as well as on the internet, on radio and television.
11. 11 Open your car dealership.

Tips

• Be creative when it comes to advertising. The more interest you generate, the more you can sell.

Warnings

• Don't open a car dealership without installing a good security system for your premises to protect you, your employees, and your inventory.