Opening a Car Dealership: How To Do It?

Opening a car dealership requires detailed planning and careful strategy to make such an investment successful. In this article, we will explore the key steps needed to start this type of business: from strategic decisions on the type of vehicles to offer, to recruiting competent staff and promoting them to attract customers.

It is also crucial to bear in mind that a car dealer may also offer the possibility of purchasing vehicles from different EU countries. However, it is essential to ensure that customers are able to drive them legally without time restrictions. To this end, it is of utmost importance to provide them with the certificate of conformity. This document is necessary to proceed with registration at the offices all over Europe. To obtain it reliably and securely, we recommend that you turn to a specialised platform such as EUROCOC.

What are the Administrative Aspects of Opening a Car Dealership?

Before starting a car dealership, it is essential to carefully plan each step of the process in order to increase the chances of success of this business venture.

There are several options to choose from: you can open a sales outlet specialising in used cars, focus on the distribution of various new car models, or focus on a single make of vehicle. In addition, you can consider adding a mechanical workshop in order to offer a complete service to your customers.

In order to open a dealership, it is essential to obtain a VAT number, register the company with the Trade Register, and inform the municipality where the activity will take place. The sales premises must comply with current health and hygiene regulations to ensure the safety of customers and staff. It is also essential to regularise contracts and manage insurance and social security practices for all employees who will be employed by the dealer.

The Spaces and Personnel for Opening a Car Dealership

To attract and instil confidence in customers, a quality car dealership must offer a welcoming, spacious and orderly environment. Many of these facilities are typically found on the outskirts of cities, where it is easier to find large showroom spaces that are easily accessible.

The building should have ample parking space for customers, perhaps enhanced by a garden where advertising signs, brand logos for sale, and other promotional announcements can be installed. 

Inside, the dealership should include a reception area, an area for displaying cars, offices for finalising contracts and, as appropriate, a workshop. The décor should be sober, comfortable and elegant, while the showroom should be inviting and well lit.

The choice of a passionate and well-trained staff is, in addition, crucial for anyone wishing to start a successful dealership. Among the showroom team, salespeople play a key role: they must be able to sell products while creating a comfortable environment for customers and ensuring a positive experience in the showroom.

Contract and finance experts play an equally crucial role. They must have legal and financial expertise to apply to model sales in order to advise buyers on the most appropriate solution for their financial needs.

How much does it cost to open a car dealership?

Opening a car dealership can involve significant costs. According to a number of online sources, costs can vary widely depending on various factors such as the make of the cars you intend to sell, the location, the size of the showroom, the layout of the car showroom, and the equipment needed.

A franchised dealership, for example, can be opened with an initial investment starting at 25,000€, offering a range of support services to run the business.

For a larger, more traditional car dealership, the costs can be much higher. Some suggest that the necessary budget can reach up to EUR 1 million.

How to promote a car dealership after its opening?

Promoting a car dealership after its opening requires a comprehensive and targeted marketing strategy to attract the attention of potential customers and create awareness of your new business:

• Creating a Marketing Plan: Start by creating a detailed marketing plan outlining your strategies, objectives and means of promotion. This plan should include your target audience, sales goals, budget, and the specific tactics you intend to use for promotion.
• Professional Website: Make sure you have a well-designed, easy-to-navigate website. This is often the first point of contact for potential customers. Include information on new arrivals, special offers, services offered and contact details.
• SEO (Search Engine Optimisation): Optimise your website for search engines so that it can be easily found online. Use relevant automotive keywords when creating content, vehicle descriptions and other sections.

• Social Media: Use social media platforms such as Facebook, Instagram, Twitter and LinkedIn to reach your audience. Post engaging content such as vehicle photos, dealer video tours and industry updates.
• Launch Events: Organise a launch event for your car dealership. This could be an opportunity to showcase your new business, offer test drives, special promotions and entertainment.

Conclusion

In summary, opening a car dealership is a challenging process that requires planning, dedication and attention to detail. From choosing the right location to selecting the vehicles to offer to creating a solid marketing strategy, every step is essential to the success of this business decision.