How to open a car salon

The statement that a car is not a luxury but a means of transportation is more than relevant today: most families have a car, and some have more than one. In addition, wealthy motorists prefer to change cars every 2-3 years. Therefore, the auto business is stably afloat. Opening a car dealership with a competent approach to business can bring good profits.

Instruction manual

1

To begin with, decide on the goals you want to achieve: if you plan to just sell cars without warranty repairs and maintenance, open a car shop. To do this, it is enough to rent retail space for a show room and utility rooms and periodically take new or used cars for sale. In this case, your margin will be the trade margin minus taxes, rents and other current expenses.

2

But effective activities require regular customers and their regular flow, so if you are aimed at a stable profitable business, build a car center focused on the sale and maintenance of cars, warranty and body repairs.

3

Choose the car brand you would like to work with. Since each car manufacturer requires compliance with the principle of “1 car dealership - 1 trademark”, study the market and give preference to brands that are not yet represented in your region but are in demand.

4

Make a business plan: evaluate the market and competition, the strengths and weaknesses of your project and the benefits. Calculate an approximate plan of income and expenses, as well as the budget of the project. Consider the need to attract loans.

5

Choose a place for your future car dealership. It should be crowded, be in a busy part of the city, but not necessarily in the center. It is advisable that the place can be reached both by personal and by public transport.

6

Send a letter to the official distributor of the brand with a proposal on cooperation and intention to open a car center for the sale and maintenance of cars. If the company is interested in your offer, its representative will come to the place to assess the prospects of promoting its brand in this region.

7

In case the distributor makes a positive decision on cooperation with you, start collecting permits and obtaining approvals for the construction of a car center. Find contractors for construction and finishing work. Automakers require dealers to comply with certain corporate standards, so the auto center project will need to be agreed upon. Some distributors send their architects to the site to develop the project.

8

Since your construction is a long-term investment, you can apply to the bank for investment loans. As a guarantee, you can enlist the support of the automaker. An investment loan is issued for a long term, which allows you to rebuild and equip a car center, put it into operation and recoup investments.

9

At the end of construction, purchase and install equipment. Choose a team of professionals: managers, consultants, engineers, experts, skilled workers. Train the staff - the distributor will help again: as a rule, large companies organize seminars and trainings for dealers.

10

Organize an advertising campaign and make a presentation of the auto center. Invite as many local media outlets to the event as possible to attract maximum potential customers.