car dealer business plan pdf

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Car Dealership Business Plan

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A Car Dealership Business Plan is a detailed plan that will help you take your business to the next level. Use this template to create your plan.

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Car Dealership Business Plan Template

Created by:

​ [Owner.FirstName] [Owner.LastName] ​

​ [Owner.Company] ​

EXECUTIVE SUMMARY

​ [Owner.Company] is a new car dealership that will offer a wide range of new and used vehicles to customers in the [Owner.City] area. The dealership will be owned and operated by [Owner.FirstName] [Owner.LastName] , who has (insert number) years of experience in the automotive industry. The dealership will be located in a prime location with high visibility and easy access for customers. It will offer a variety of services, including sales, financing, leasing, maintenance, and repair.

COMPANY DESCRIPTION

​ [Owner.Company] will be registered as a(n) (LLC/Corporation) and will employ (insert number) people at the start, including the owner and a team of sales associates and service technicians. The dealership will offer a selection of new vehicles from top manufacturers and a wide range of high-quality used vehicles. The dealership will also offer financing and leasing options for customers, as well as maintenance and repair services for all makes and models of vehicles.

MARKET ANALYSIS

The automotive industry is expected to remain stable over the next five years, with a slight increase in sales projected. The demand for new and used vehicles is driven by population growth, economic development, and the need for reliable transportation. [Owner.Company] will target both individual and commercial customers in the [Owner.City] area, focusing on providing high-quality vehicles and excellent customer service.

MARKETING STRATEGY

​ [Owner.Company] will use a combination of traditional and digital marketing techniques to reach potential customers. This will include advertising in local newspapers and industry publications, as well as utilizing social media platforms and email marketing to promote sales and specials. The dealership will also rely on word-of-mouth referrals from satisfied customers. The dealership will host events and promotions to attract new customers and build brand awareness in the local community.

​ [Owner.Company] will have a modern showroom and service center to showcase vehicles and provide maintenance and repair services. The dealership will have a team of experienced sales associates and service technicians who will assist customers and maintain the dealership's inventory of vehicles. The dealership will have a manager overseeing all operations and ensuring that the dealership is running smoothly. The dealership will maintain a well-stocked parts department to ensure that customers' vehicles are well-maintained and repaired as needed.

FINANCIAL PLAN

​ [Owner.Company] will generate revenue through the sale of new and used vehicles, as well as financing and leasing options. The dealership will also generate revenue through the sale of parts and services. The dealership will have operating expenses, including payroll, rent, utilities, and insurance. The dealership expects to generate (Amount) in revenue in the first year, with a projected growth rate of (Percentage) per year. The dealership will implement strategies to increase profitability, such as offering value-added services and maintaining a high level of customer satisfaction.

​ [Owner.Company] is well-positioned to meet the demand for new and used vehicles in the [Owner.City] area. With a prime location, a wide range of high-quality vehicles and services, and a commitment to customer satisfaction, the dealership is confident that it will be successful in the competitive automotive market.

​ [Client.FirstName] [Client.LastName] ​

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Car Dealership Business Plan Template

The world’s #1 car dealership business plan template — it’s the quickest and easiest way to create a winning car dealership business plan, period.

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Simply type in some numbers, like your salary and expected growth, and our template automatically calculates your complete 5-year financial projections.

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Frequently Asked Questions

Below are answers to your most frequently asked questions:.

Immediately upon purchasing Growthink’s Ultimate Car Dealership Business Plan Template, you will be taken to our Member’s Area where you can instantly download our template and begin working on your business plan.

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You can create an unlimited number of business plans with Growthink’s Ultimate Car Dealership Business Plan Template. Once you purchase it, you have lifetime access to use it for any business in which you’re involved, now or in the future.

Yes, Growthink’s Ultimate Car Dealership Business Plan Template works flawlessly on both PCs and Macs.

Growthink’s Ultimate Car Dealership Business Plan Template is designed for both established Car Dealerships and startups.

Yes , you can! Anyone can easily follow our basic instructions and create a great business plan quickly and easily. Plus, my expert team is available to help you if you have any questions.

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Here is a free business plan sample for a car dealership business.

Have you been toying with the idea of opening a car dealership but feel overwhelmed by the thought of planning it out?

Look no further, as we're about to guide you through a comprehensive business plan tailored for the automotive sales industry.

As any seasoned entrepreneur will tell you, a robust business plan is crucial to navigating the road to success. It serves as a roadmap, helping you to establish clear objectives, strategies, and financial projections for your venture.

To shift your planning into high gear without any detours, you can utilize our car dealership business plan template. And if you need an expert pit stop, our team is on standby to review and fine-tune your plan at no cost.

How to draft a great business plan for your car dealership business?

A good business plan for a car dealership must be tailored to the unique aspects of automotive sales and service.

To start, a comprehensive market overview is crucial. This should include current industry statistics and emerging trends, as illustrated in our car dealership business plan template .

Your business plan should articulate your vision clearly. Define your target market (such as families, luxury buyers, or commercial enterprises) and your dealership's unique value proposition (such as specializing in electric vehicles, offering exceptional after-sales service, or providing a wide range of financing options).

Market analysis is a key component. This requires a thorough understanding of local competitors, automotive industry trends, and consumer buying habits.

For a car dealership, it's important to detail the range of vehicles and services you plan to offer. Describe your inventory - new cars, used cars, commercial vehicles - and how these cater to the preferences and needs of your target customers.

The operational plan is critical. It should outline the location of your dealership, the showroom layout, vehicle procurement strategies, and the sales process.

As a car dealership, you must emphasize the quality of your vehicles, customer service excellence, and adherence to automotive industry standards and regulations.

Address your marketing and sales strategy next. How will you draw in and keep customers? Consider advertising tactics, customer loyalty programs, and cross-selling opportunities (such as selling car accessories or offering maintenance packages).

Implementing digital strategies, like maintaining an updated website and active social media profiles, is also vital in the modern marketplace.

The financial plan is another crucial element. This includes the initial investment, sales projections, operational expenses, and the point at which you will break even.

In a car dealership, understanding the profit margins for different types of vehicles and services is essential, so meticulous planning and a firm grasp of your financials are necessary. For assistance, refer to our financial forecast for a car dealership .

Compared to other business plans, a car dealership's plan must pay special attention to inventory management, manufacturer relationships, compliance with automotive regulations, and the cyclical nature of car sales.

A well-crafted business plan will not only help you clarify your strategies and vision but also attract investors or secure loans.

Lenders and investors are looking for a solid market analysis, realistic financial projections, and a clear understanding of the day-to-day operations of a car dealership.

By presenting a detailed and substantiated plan, you show your credibility and dedication to the success of your dealership.

To achieve these goals while saving time, you can complete our car dealership business plan template .

A free example of business plan for a car dealership business

Here, we will provide a concise and illustrative example of a business plan for a specific project.

This example aims to provide an overview of the essential components of a business plan. It is important to note that this version is only a summary. As it stands, this business plan is not sufficiently developed to support a profitability strategy or convince a bank to provide financing.

To be effective, the business plan should be significantly more detailed, including up-to-date market data, more persuasive arguments, a thorough market study, a three-year action plan, as well as detailed financial tables such as a projected income statement, projected balance sheet, cash flow budget, and break-even analysis.

All these elements have been thoroughly included by our experts in the business plan template they have designed for a car dealership .

Here, we will follow the same structure as in our business plan template.

Market Opportunity

Market data and figures.

The automotive retail industry is a significant component of the global economy.

As of recent data, the global automotive dealership market is valued at several hundred billion dollars, with projections indicating steady growth. This is fueled by increasing vehicle sales, both new and pre-owned, and the expansion of automotive services.

In the United States alone, there are over 18,000 franchised car dealerships, generating a combined annual revenue of over 1 trillion dollars. This underscores the critical role car dealerships play in the American economy and the automotive industry at large.

These figures highlight the robust nature of the car dealership market and its substantial contribution to economic activity.

The automotive industry is witnessing several key trends that are shaping the future of car dealerships.

Electric vehicles (EVs) are gaining momentum, with more consumers seeking environmentally friendly transportation options. This shift is driving dealerships to diversify their inventory to include a range of EVs and hybrids.

Connectivity and autonomous driving technologies are advancing, leading to an increased demand for vehicles equipped with the latest tech features.

Online car buying platforms are transforming the traditional car purchasing experience, offering more convenience and transparency to consumers. This trend is compelling dealerships to enhance their digital presence and offer virtual showrooms and online financing options.

Subscription services and flexible ownership models are also emerging, providing alternatives to traditional car ownership and leasing.

Amidst these trends, consumer expectations for exceptional service and personalized experiences remain high, pushing dealerships to prioritize customer satisfaction and loyalty programs.

These trends are indicative of the dynamic nature of the car dealership industry and the need for businesses to adapt to the evolving preferences of modern consumers.

Success Factors

Several factors contribute to the success of a car dealership.

First and foremost, a diverse and high-quality vehicle inventory that meets consumer demands is essential. Dealerships that offer a wide range of models, including the latest releases and certified pre-owned vehicles, are more likely to attract a broad customer base.

Innovative marketing strategies and a strong online presence are also critical in a digital age where many consumers begin their car buying journey online.

The location of the dealership plays a significant role in its visibility and accessibility to potential customers.

Exceptional customer service, from the initial inquiry to post-sale support, is vital for building trust and encouraging repeat business.

Lastly, efficient operations management, competitive pricing, and the ability to adapt to industry trends, such as the rise of electric vehicles and digital sales platforms, are key to a dealership's long-term viability and profitability.

The Project

Project presentation.

Our car dealership project is designed to cater to the evolving needs of modern consumers who are seeking reliable, eco-friendly, and technologically advanced vehicles. Strategically located in an area with high vehicular traffic and easy accessibility, our dealership will offer a diverse range of vehicles, including electric and hybrid models, family cars, and luxury vehicles, all from reputable manufacturers.

We will prioritize exceptional customer service, a transparent buying process, and a comprehensive after-sales support system to ensure a seamless and satisfying ownership experience.

Our dealership is set to become a trusted destination for car buyers who value sustainability, innovation, and quality in their automotive choices, thereby contributing to a greener and more technologically connected community.

Value Proposition

The value proposition of our car dealership is centered on providing a diverse selection of high-quality vehicles that cater to the environmental consciousness and lifestyle needs of our customers.

Our commitment to sustainability, customer satisfaction, and technological innovation positions us as a forward-thinking dealership that not only sells cars but also contributes to a cleaner environment and enhances the driving experience with the latest automotive advancements.

We are dedicated to fostering long-term relationships with our customers by offering a trustworthy, informative, and hassle-free car buying journey, and aim to educate our customers about the benefits of eco-friendly and smart vehicle choices.

Our dealership is determined to be a cornerstone in the community, offering a sustainable and advanced automotive solution that aligns with the values and aspirations of our customers.

Project Owner

The project owner is an automotive industry professional with a passion for cars and a deep understanding of the modern consumer's expectations.

With a background in automotive sales and a keen interest in environmental sustainability, he is driven to establish a car dealership that stands out for its commitment to offering eco-friendly and technologically advanced vehicles.

With a vision of innovation and customer-centric service, he is dedicated to providing a selection of cars that not only meet the practical demands of daily life but also contribute to the reduction of carbon footprints and the promotion of green technology.

His dedication to excellence and his enthusiasm for the automotive industry make him the driving force behind this project, aiming to revolutionize the car buying experience and support the community's transition to more sustainable transportation options.

The Market Study

Market segments.

The market segments for this car dealership are divided into several categories.

First, there are individuals looking for reliable and affordable transportation, who prioritize functionality and value in their vehicle purchases.

Next, there are car enthusiasts and luxury buyers who seek the latest models, high performance, or premium features in their vehicles.

The market also includes families in need of spacious and safe vehicles for daily commuting and long-distance travel.

Finally, businesses and professionals requiring fleet vehicles or company cars form another significant segment, emphasizing durability and cost-effectiveness.

SWOT Analysis

A SWOT analysis of this car dealership project reveals several aspects.

Strengths include a wide selection of vehicles, strong relationships with manufacturers, a knowledgeable sales team, and a reputation for excellent customer service.

Weaknesses could include the high costs associated with maintaining an extensive inventory and the challenge of adapting to rapidly changing automotive technology.

Opportunities lie in the growing demand for electric and hybrid vehicles, the potential to offer competitive financing options, and the ability to expand services such as maintenance and repairs.

Finally, threats could include economic downturns affecting consumer spending, increased competition from other dealerships and online car sellers, and regulatory changes impacting the automotive industry.

Competitor Analysis

Competitor analysis in the car dealership sector reveals a diverse and competitive landscape.

Among direct competitors are other local dealerships, national chains, and online platforms that offer vehicle sales and leasing options.

These players compete on price, vehicle selection, financing options, and customer service quality.

Potential competitive advantages include exclusive dealership agreements with manufacturers, a strong online presence, exceptional after-sales support, and a loyal customer base.

Understanding competitors' strengths and weaknesses is crucial for carving out a unique position in the market and ensuring customer loyalty.

Competitive Advantages

Our car dealership stands out due to our commitment to providing a diverse range of high-quality vehicles that cater to various customer needs and preferences.

We offer competitive pricing, flexible financing options, and a customer-centric approach that ensures a seamless buying experience.

Additionally, our after-sales services, including maintenance, repairs, and parts, help us maintain strong relationships with our customers, fostering trust and repeat business.

We pride ourselves on our knowledgeable staff who are passionate about cars and dedicated to helping customers find the perfect vehicle for their lifestyle and budget.

You can also read our articles about: - how to start a car dealership business: a complete guide - the customer segments of a car dealership business - the competition study for a car dealership business

The Strategy

Development plan.

Our three-year development plan for the car dealership is designed to establish us as a leader in the automotive sales industry.

In the first year, we will concentrate on building a robust inventory of quality vehicles and creating a strong local presence through exceptional customer service and community engagement.

The second year will focus on expanding our reach by establishing additional showrooms in key locations and enhancing our online sales platform to cater to a wider audience.

By the third year, we aim to diversify our offerings to include electric and hybrid vehicles, as well as providing financial services such as leasing and car loans. We will also seek strategic partnerships with automotive service providers to offer a comprehensive customer experience.

Throughout this period, we will remain dedicated to customer satisfaction, transparency in transactions, and staying ahead of industry trends to serve our clients better and secure our market position.

Business Model Canvas

The Business Model Canvas for our car dealership focuses on a diverse customer segment that includes first-time buyers, families, professionals, and car enthusiasts.

Our value proposition is centered around providing a wide range of high-quality vehicles, competitive pricing, and a superior customer buying experience.

We will facilitate sales through our physical dealership locations and a user-friendly online platform, utilizing key resources such as our knowledgeable sales team and our partnerships with reputable car manufacturers.

Key activities include vehicle procurement, sales consultations, and after-sales support.

Our revenue streams will be generated from vehicle sales, financing options, and after-sales services, while our costs will be primarily associated with inventory acquisition, facility maintenance, and marketing initiatives.

Access a complete and editable real Business Model Canvas in our business plan template .

Marketing Strategy

Our marketing strategy is built on brand recognition and customer loyalty.

We plan to engage potential customers by showcasing the reliability and variety of our vehicle inventory. We will host test drive events, participate in local and regional auto shows, and maintain an active online presence with virtual tours and detailed vehicle information.

We will also establish partnerships with local businesses and organizations to expand our network and referral base.

Utilizing social media, targeted advertising, and influencer partnerships, we aim to reach a wider audience and establish our dealership as a trusted name in the automotive industry.

Risk Policy

The risk policy for our car dealership is focused on mitigating risks associated with inventory management, market fluctuations, and customer satisfaction.

We will implement a dynamic inventory management system to align with market demand and avoid overstocking. We will also keep abreast of industry trends to adapt to changes in consumer preferences, particularly with the shift towards sustainable vehicles.

To ensure customer satisfaction, we will provide comprehensive training to our staff and implement a feedback system to promptly address any concerns.

Additionally, we will maintain a conservative financial strategy to safeguard against economic downturns and have comprehensive insurance policies to cover potential liabilities.

Why Our Project is Viable

We are committed to launching a car dealership that meets the evolving needs of modern consumers.

With a focus on quality, customer service, and adaptability to market trends, we are poised to carve out a significant share in the competitive automotive market.

We are enthusiastic about the opportunity to serve our community and look forward to the growth and success of our dealership.

Open to strategic adjustments and innovation, we are confident in the viability and future prosperity of our car dealership.

You can also read our articles about: - the Business Model Canvas of a car dealership business - the marketing strategy for a car dealership business

The Financial Plan

Of course, the text presented below is far from sufficient to serve as a solid and credible financial analysis for a bank or potential investor. They expect specific numbers, financial statements, and charts demonstrating the profitability of your project.

All these elements are available in our business plan template for a car dealership and our financial plan for a car dealership .

Initial expenses for our car dealership include acquiring a suitable showroom location, purchasing an initial inventory of vehicles, obtaining the necessary licenses and insurance, investing in high-quality maintenance equipment, and developing a robust IT system for inventory and sales management. Additionally, we will incur costs related to branding, creating an online presence, and launching targeted marketing campaigns to attract potential customers.

Our revenue assumptions are based on a comprehensive analysis of the local market demand for vehicles, taking into account factors such as population growth, economic trends, and consumer preferences for specific car models and features.

We anticipate a steady increase in vehicle sales, starting with a conservative approach and expanding as our dealership gains recognition and trust within the community.

The projected income statement outlines expected revenues from vehicle sales and services, cost of goods sold (purchase price of inventory, parts, and supplies), and operating expenses (facility lease, marketing, salaries, utilities, etc.).

This results in a forecasted net profit that is essential for assessing the long-term profitability of our car dealership.

The projected balance sheet reflects assets specific to our business, such as vehicle inventory, showroom fixtures, and liabilities including loans and anticipated operational expenses.

It provides a snapshot of the overall financial health of our car dealership at the end of each accounting period.

Our projected cash flow statement details the inflows and outflows of cash, enabling us to predict our financial needs at any given time. This will assist us in managing our finances effectively and preventing cash flow issues.

The projected financing plan identifies the specific sources of funding we intend to utilize to cover our startup and operational expenses.

The working capital requirement for our car dealership will be meticulously managed to ensure we have the necessary funds to support daily operations, including vehicle procurement, inventory management, and employee wages.

The break-even point for our dealership is the level of sales required to cover all our costs, including initial investments, and to begin generating a profit.

It will signal the point at which our business becomes financially sustainable.

Performance indicators we will monitor include the gross profit margin on vehicle sales, the inventory turnover rate to evaluate the efficiency of our stock management, and the return on investment to gauge the profitability of the capital invested in our dealership.

These metrics will aid us in assessing the financial performance and overall success of our car dealership.

If you want to know more about the financial analysis of this type of activity, please read our article about the financial plan for a car dealership business .

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Car Dealership Business Plan Template [Updated 2024]

Car Dealership Business Plan

If you want to start a new car dealership or expand your current dealership, you need a business plan.

The following car dealership business plan template gives you the key elements to include in a winning business plan. In addition to this template, a successful business plan will include market research to support your business concept, help you better understand the car dealership industry, market trends, car prices and your target customers. It will also help you craft a smart marketing plan and a strong financial plan.

You can download our Car Dealership Business Plan Template (including a full, customizable financial model) to your computer here.

Sample Business Plan For New Car Dealerships

Below are links to each of the key sections of a sample business plan that can be used for all types of car dealerships including a luxury car dealership, an online car dealership, new car dealers, and used car dealerships.

• Executive Summary – The executive summary provides an overview of your business opportunity and summarizes the business plan.
• Company Overview – The company analysis includes information about your business concept, the types of vehicles you plan to sell, car repair and maintenance services and legal structure.
• Industry Analysis – The industry analysis includes market research that supports your business and provides insights into market trends and the automotive industry.
• Customer Analysis – The customer analysis provides an overview of your target market and the purchasing habits of these potential customers.
• Competitive Analysis – The competitive analysis should identify your direct and indirect competitors and highlight your competitive advantage.
• Marketing Plan – The marketing plan includes your marketing strategy, pricing strategy and how you will build brand awareness utilizing social media platforms and other forms of digital marketing.
• Operations Plan – The Operations Plan includes information on your dealership’s day-to-day operations including inventory management and auto sales, and processes in the service department to maintain customer satisfaction.
• Management Team – The management team section includes a profile of the business owner and business management, their experience and company responsibilities.
• Financial Plan – The financial plan includes financial projections, a cash flow statement, profit and loss statement, and balance sheet.

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Car Dealership Business Plan Home I. Executive Summary II. Company Overview III. Industry Analysis IV. Customer Analysis V. Competitive Analysis VI. Marketing Plan VII. Operations Plan VIII. Management Team IX. Financial Plan

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Car Dealership Business Plan Template

Document description.

This car dealership business plan template has 26 pages and is a MS Word file type listed under our business plan kit documents.

Sample of our car dealership business plan template:

[INSERT IMAGE/LOGO] [YOUR COMPANY NAME] [YOUR ADDRESS] [YOUR CITY], [YOUR STATE/PROVINCE] [YOUR ZIP/POSTAL CODE] Tel. [YOUR PHONE NUMBER] Fax: [YOUR FAX NUMBER] Email: [YOUR [email protected]] BUSINESS PLAN

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Used Car Dealership Business Plan Template

Written by Dave Lavinsky

Used Car Dealership Business Plan

You’ve come to the right place to create your Used Car Dealership business plan.

We have helped over 1,000 entrepreneurs and business owners create business plans and many have used them to start or grow their Used Car Dealerships.

Below is a template to help you create each section of your Used Car Dealership business plan.

Executive Summary

Business overview.

Reliable Motors is a used car dealership located in Portland, Oregon. We specialize in offering a wide selection of high-quality used vehicles to customers in our local area. With a focus on exceptional customer service and competitive pricing, we aim to become the preferred choice for individuals looking to purchase reliable pre-owned vehicles.

Reliable Motors is run by Otto Masterson. Otto has 12 years of experience in vehicle sales and dealership operations. His customer-centric approach, and strong understanding of the local market will ensure that our firm is successful.

Product Offering

Reliable Motors offers a diverse inventory of used cars, trucks, SUVs, and vans from various makes and models. Our selection includes vehicles that are carefully inspected, tested, and certified to meet our stringent quality standards. We also provide vehicle history reports and offer extended warranties for added peace of mind. Our knowledgeable sales team is committed to assisting customers in finding the right vehicle that suits their needs and budget.

Customer Focus

Our primary target market includes individuals and families in Portland, Oregon who are looking to purchase a reliable used vehicle. We will cater to customers with various budgets, offering a range of price points to accommodate different financial situations. Additionally, we will also establish partnerships with local businesses, such as car rental companies and auto repair shops, to provide them with fleet vehicles and maintenance services.

Management Team

Reliable Motors’ most valuable asset is the expertise and experience of its founder, Otto Masterson. Otto has been in automotive sales for the past 20 years. Throughout his career, he has developed a strong base of repeat customers, many of whom have stated that they will buy their next car from Reliable Motors once the company is established and running. Otto’s customer-centric approach, and strong understanding of the local market will ensure that our firm is successful.

Success Factors

Reliable Motors will achieve success by offering the following competitive advantages:

• Quality Inventory: We will ensure our inventory consists of well-maintained and reliable used vehicles that meet our strict quality standards.
• Competitive Pricing: We will offer competitive prices to attract customers and provide value for their money. Our pricing strategy will consider market trends, vehicle condition, and fair market value.
• Exceptional Customer Service: We will prioritize customer satisfaction by providing a personalized and hassle-free buying experience. Our knowledgeable and friendly sales team will assist customers in finding the right vehicle that meets their needs and budget.
• Transparent Processes: We will establish trust by providing accurate vehicle information, pricing details, and facilitating open communication.
• Strong Industry Partnerships: We will collaborate with reputable suppliers, finance institutions, and service providers to enhance our offerings and provide additional benefits to customers.

Financial Highlights

Reliable Motors is seeking $1,000,000 in funding to establish and grow the business. The funds will be allocated as follows:

• Inventory acquisition: $800,000
• Renovation and setup of the dealership facility: $100,000
• Marketing and advertising expenses: $50,000
• Working capital: $50,000

The projected financials indicate steady revenue growth and profitability within the first three years of operation

Company Overview

Who is reliable motors.

  Reliable Motors is run by Otto Masterson, a 12 year veteran in vehicle sales and dealership operations. After working for several dealerships around town, he surveyed his most loyal customers to see if they would be willing to switch to his new dealership once it is established. Most of his customers responded enthusiastically, which motivated Otto to finally launch his business.

Reliable Motors History

Once he canvassed his loyal customer base and located a potential location, Otto Masterson incorporated Reliable Motors as an S-Corporation in April 2023.

The business is currently being run out of Otto’s home office, but once the purchase of the dealership location is finalized, all operations will be run from there.

Since incorporation, Reliable Motors has achieved the following milestones:

• Found a location and made an offer of purchase
• Developed the company’s name, logo, and website
• Hired an architect to design the lot, the service area, and the office building
• Determined equipment and fixture requirements
• Began recruiting key employees

Reliable Motors Services

Reliable Motors will provide the following services to its customers:

• Vehicle Sales: offer an inventory of used cars, trucks, SUVs, and vans, catering to various customer preferences and budgets.
• Financing Assistance: assistance with financing options through partnerships with local banks and financial institutions.
• Trade-ins: Customers will have the option to trade in their current vehicles, allowing them to apply the value toward their purchase at Reliable Motors.

Industry Analysis

The used car industry is experiencing steady growth, driven by factors such as rising new car prices, improved vehicle reliability, and a growing preference for cost-effective transportation options.

The used car industry is expected to grow over the next several years. According to a recent report by IBISWorld, the used car dealerships industry is expected to grow at a CAGR of 1.2% from now until 2028. This growth is due to increasing environmental consciousness, which has caused many consumers to avoid purchasing new automobiles. This increase in demand and industry growth ensures that Reliable Motors will achieve success.

This industry presents a significant opportunity for Reliable Motors to cater to customers seeking quality used cars at competitive prices.

Customer Analysis

Demographic profile of target market.

Reliable Motors primarily targets individuals in the Portland area who are in the market for a reliable and affordable pre-owned vehicle. By understanding our customers’ needs and providing a personalized buying experience, we aim to build long-lasting customer relationships.

Customer Segmentation

Reliable Motors will primarily target the following customer profiles:

• First-time car buyers
• Professionals
• Individuals

Competitive Analysis

Direct and indirect competitors.

Reliable Motors faces competition from both direct and indirect competitors in the used car dealership industry. Direct competitors include other local dealerships offering similar vehicle options. Indirect competitors include online marketplaces and private sellers.

AutoWheels is a used car dealership that carries a large variety of used cars, trucks, SUVs, and vans. Their line of car brands include Chevrolet, Dodge, Ford, Jeep, and Toyota. AutoWheels’ focus is offering clean, newer model used cars with affordable monthly payments. The dealership offers flexible financing approval for buyers with any credit score or financial situation.

AutoWheels partners with Portland Precision Auto Care for its automotive maintenance and repair needs. This partnership enables AutoWheels to offer services that include Car and Truck care, Electronic Services, Electrical Services, General Services, Heating and Cooling Services, Engine & Transmission, Miscellaneous Services, Transmission Services, Undercar Services, and Brakes.

James Rivers Automotive Outlet

Located in Portland’s Sellwood-Moreland neighborhood, James Rivers Automotive Outlet is a member of the James Rivers Family-Owned and Operated group of dealers in Portland. The dealership carries a large inventory of new, certified pre-owned, and pre-owned line of cars, trucks, SUVs, and vans. Their line of vehicles are in all price ranges and body types. James Rivers Automotive Outlet also offers trade-in evaluations at their other franchised stores – James Rivers Honda, Acura, and Toyota. The dealership also offers affordable financing options.

Eastside Used Cars

Established in 2011, Eastside Used Cars is a family-owned used car dealership. The dealership is fully internet based and all sales are by appointment only, in one of two locations: Sandy and Gresham. The dealership claims to have the best prices in the market, offering wholesale prices to the public. Customers may also expect to receive top dollar for their trade-ins.

The dealership currently offers an inventory of 175 vehicles, ranging in price from $6,990 to $60,800. It offers a variety of finance options for consumers with all levels of credit, but outside financing is welcomed.

Competitive Advantage

Reliable Motors holds the following advantages over the competition:

• Rigorous Vehicle Inspection : Each vehicle in our inventory undergoes a thorough inspection to ensure its mechanical and cosmetic condition, providing customers with peace of mind.
• Customer-Centric Approach : We prioritize customer satisfaction by offering personalized assistance, transparent pricing, and a hassle-free buying experience.
• Extensive Inventory : Our diverse inventory caters to various customer preferences and budgets, ensuring a wide range of options to choose from.

Marketing Plan

Brand & value proposition.

Reliable Motors will offer a unique value proposition to its clientele:

• Client-focused automotive sales, where the customer is treated fairly, with transparent pricing and a variety of financing options
• Service built on long-term relationships
• Top-quality automotive repair and maintenance, at competitive prices

Promotions Strategy

The promotions strategy for Reliable Motors is as follows:

Reliable Motors understands that the best promotion comes from satisfied customers. The Company will encourage its customers to refer other businesses by providing economic or financial incentives for every new customer produced. This strategy will increase in effectiveness after the business has already been established.

Social Media

Reliable Motors will invest heavily in a social media advertising campaign. The company will create social media accounts and invest in ads on all social media platforms. It will use targeted marketing to appeal to the target demographics.

Website/SEO Marketing

Reliable Motors will invest heavily in developing a professional website that showcases current inventory, and provides valuation tools for potential trade-ins. It will also invest heavily in SEO so that the firm’s website will appear at the top of search engine results.

Operations Plan

The following will be the operations plan for Reliable Motors. Operation Functions:

• Otto Masterson is the Owner of Reliable Motors. In addition to providing inventory management and sales, he will also manage the general operations of the business.
• Otto Masterson is joined by a full-time administrative assistant, Mandy Bobo, who will take charge of the administrative tasks for the company. She will also be available to answer incoming calls and make service appointments.
• As the company builds its customer base, Otto will hire more sales professionals to grow our business further.

Milestones:

Reliable Motors will have the following milestones completed in the next six months.

• 6/2023 Finalize location purchase
• 7/2023 Design and build out Reliable Motors
• 8/2023 Hire and train initial staff
• 9/2023 Kickoff of promotional campaign
• 10/2023 Launch Reliable Motors
• 11/2023 Reach break-even

Reliable Motors’s most valuable asset is the expertise and experience of its founder, Otto Masterson. Otto has been in automotive sales for the past 20 years. Throughout his career, he has developed a loyal customer base, many of whom have stated that they will switch to Reliable Motors when it comes time to purchase a new vehicle. Otto’s customer-centric approach, and strong understanding of the local market will ensure that our dealership is successful.

Though he has never run his own business, Otto Masterson worked his way up from automotive sales associate to sales manager, where he gained an in-depth knowledge of the operations (e.g., running day-to-day operations) and the business (e.g., staffing, marketing, etc.) sides of the industry. He also already has a starting customer base that he served while working for other auto dealerships. He will hire several other employees who can help him run the aspects of the business that he is unfamiliar with.

Financial Plan

Key revenue & costs.

Reliable Motors’s revenues will from vehicle sales, with additional income generated through financing options and after-sales services. Key costs include

The notable cost drivers for the company will include inventory acquisition, overhead expenses, marketing expenses, personnel costs, and facility maintenance.

Funding Requirements and Use of Funds

Key assumptions.

The following outlines the key assumptions required in order to achieve the revenue and cost numbers in the financials and pay off the startup business loan.

• Number of clients:
• Year 1: 400
• Year 2: 500
• Year 3: 750
• Year 4: 1000
• Year 5: 1250

Financial Projections

Income statement, balance sheet, cash flow statement, used car dealership business plan faqs, what is a used car dealership business plan.

A used car dealership business plan is a plan to start and/or grow your used car dealership business. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections.

You can easily complete your Used Car Dealership business plan using our Used Car Dealership Business Plan Template here .

What are the Main Types of Used Car Dealership Businesses? 

There are a number of different kinds of used car dealership businesses , some examples include: Franchised dealership, Independent dealerships, and “Bad Credit” dealerships.

How Do You Get Funding for Your Used Car Dealership Business Plan?

Used Car Dealership businesses are often funded through small business loans. Personal savings, credit card financing and angel investors are also popular forms of funding.

What are the Steps To Start a Used Car Dealership Business?

Starting a used car dealership business can be an exciting endeavor. Having a clear roadmap of the steps to start a business will help you stay focused on your goals and get started faster.

1. Develop A Used Car Dealership Business Plan - The first step in starting a business is to create a detailed used car dealership business plan that outlines all aspects of the venture. This should include potential market size and target customers, the services or products you will offer, pricing strategies and a detailed financial forecast. 

2. Choose Your Legal Structure - It's important to select an appropriate legal entity for your used car dealership business. This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks so it’s important to do research and choose wisely so that your used car dealership business is in compliance with local laws.

3. Register Your Used Car Dealership Business - Once you have chosen a legal structure, the next step is to register your used car dealership business with the government or state where you’re operating from. This includes obtaining licenses and permits as required by federal, state, and local laws.

4. Identify Financing Options - It’s likely that you’ll need some capital to start your used car dealership business, so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms.

5. Choose a Location - Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of space would be suitable for your operations.

6. Hire Employees - There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events.

7. Acquire Necessary Used Car Dealership Equipment & Supplies - In order to start your used car dealership business, you'll need to purchase all of the necessary equipment and supplies to run a successful operation.

8. Market & Promote Your Business - Once you have all the necessary pieces in place, it’s time to start promoting and marketing your used car dealership business. This includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing techniques such as radio or print advertising. 

Learn more about how to start a successful used car dealership business:

• How to Start a Used Car Business

Where Can I Get a Used Car Dealership Business Plan PDF?

You can download our free used car dealership business plan template PDF here . This is a sample used car dealership business plan template you can use in PDF format.

Don't bother with copy and paste.

Get this complete sample business plan as a free text document.

Used Auto Sales Business Plan

Start your own used auto sales business plan

Integrity Auto Sales

Executive summary executive summary is a brief introduction to your business plan. it describes your business, the problem that it solves, your target market, and financial highlights.">, auto sales & parts.

There is a need in Lane County for a large selection of quality used cars, and Integrity Auto Sales will sell these top-quality used vehicles at a competitive price. The owner and sales manager have over 30 years of combined experience in new and used auto sales. We will continue to develop our excellent working relationship with local dealers and auctions to bring the savings to the customer.

We will create a purchasing environment that caters to the customer’s needs. We are selling a professional service and an experience in car buying that will bring customers back again, as well as referring friends and family. We estimate an optimistic gross margin over the industry average. We will be successful because of the excellent team we have assembled and the drive and determination of the owners.

Almost everyone needs a car to get from point A to B. Many families have two or more cars. Due to the recent success of the new car market, there is a large inventory of used cars available for re-sale. New car sales have enjoyed the largest single month gain in October up 24%.

Competition

Used car dealers are notorious for unethical sales practices. Customers are inherently cautious and untrusting as a result. The more we can provide a high-quality sales experience, the more successful we will be. Our salesmen will provide a friendly and personal experience for the buyer. We will follow up and ensure customer satisfaction. We will rely on these customers for an excellent reference to other car buyers. This company will build an excellent working relationship with our suppliers and customers.

Integrity Auto Sales provides a unique car buying experience to the customers in the Willamette Valley. One that focuses on customer satisfaction first. We understand that vehicle purchasing is a necessary, but sometimes unpleasant experience. Our goal is to provide the customer with an enjoyable, honest service by satisfying individual customers practical transportation needs with a quality product.

We also believe it is important to have quality vehicles at a low cost, and will back each vehicle with a 30 day limited warranty. Our company will make a profit by generating sales. It will provide job satisfaction and fair compensation to its employees, and a fair return to its owners. Hard work and performance is rewarded through bonuses and commissions. Job satisfaction is very important for employees and owners, we will create a work environment that is enjoyable and profitable for all.

Expectations

• Growth will be moderate to good, cash flows steady with several months of loss in the beginning
• Marketing will remain below 10% of sales. 
• The company will invest residual profits (10%) into financial markets and approximately 50% into company expansion for the first year.

Financial Highlights by Year

Financing needed.

We need $130,000 funding to start. That includes a $100,000 loan. Jonathan will invest $20,000 and Don will invest $10,000. 

Opportunity

Problem & solution, problem worth solving, our solution, target market, market size & segments.

Almost everyone needs a car to get from point A to B. Many families have two or more cars. Due to the recent success of the new car market, there is a large inventory of used cars available for re-sale. New car sales have enjoyed the largest single month gain in October 2001, up 24%.

4.1 Market Segmentation

Our market segmentation will consist of four basic segments; students, retired, families, and singles.

Current Alternatives

Our closest, similar competitors are AA Auto Sales, Big Apple Car Sales, Frank’s Auto Place, Guaranty, R & L Motors, and Sierra Truck, all on Hwy 99 between Eugene and Junction City.

• The primary competitors will be those in and around Junction City. Guaranty is a large, well-established dealer, with approximately 75% of the local market share. Guaranty has a large operation with a well-trained sales staff. Our sales manager is a former Guaranty sales manager, who understands the competition’s operations very well.
• Frank’s Auto Place offers a limited selection, and appears to be unorganized. Frank’s does not offer any competitive marketing and primarily focuses on the $1-2,000 vehicle.

Our Advantages

Keys to success.

To succeed in this business we must:

• Put together a team of experienced professionals.
• Secure an excellent high-traffic location.
• Establish a network of suppliers, in order to buy and sell products that are of the highest reliability and quality, at a competitive price.
• Ensure customer satisfaction by encouraging the two most important values, honor and integrity.
• Create high morale by rewarding employee success with monetary compensation.

Marketing & Sales

Marketing plan.

Our marketing strategy will focus on four segments. Those segments are described in the following subtopics. We will implement a strategy that treats customers as a community. This means our marketing resources will be centered around advertising both sales promotions (events) and personal sales (customer service, friendly atmosphere).

• The marketing budget will not exceed $6,000 per year.
• 100% customer satisfaction, measured through repeat customers, referrals and surveys.
• To achieve a respectable profit margin within the first three-years.
• To achieve a healthy net profit by year two.

The  retired  group will focus on practicality. Cost may be less important than quality and features. This group wants comfortable, nicely equipped vehicles at a reasonable price. They will want a vehicle that will last for years.

Families  will focus on safe, practical vehicles. Something that will last for years, can fetch groceries, carry the kids, and perform long trips. Many will be on a budget, and price may be a big factor. They will shop around and educate themselves on vehicles, shopping for a specific make or model.

The last group is the  singles . They are similar to the students in that they want flashly cool cars, but may be a working professional who can afford to pay more for a higher-quality vehicle.

Sales compensation is based on a percent of profits. We will invest adequate time and resources into training each member of the sales team and into good customer relations. Salesmen will be paid a portion of their salary based on commission. Good performance is rewarded with increased commission and bonuses. However integrity will not be sacrificed for sales. Customer satisfaction will continue to be a top priority. All potential sales will be attended to in a timely fashion and long-term salesperson-customer relationships will take precedence over sales closure.

Locations & Facilities

• The company office is located at 12345 HWY 99, Junction City, OR 97666.
• The office is approximately 1,000 square feet and has ample space for the first three years of growth.
• The 20,000 square foot lot and building is leased from the principal owner.

Integrity Auto Sales sells top-quality used vehicles at a competitive price. Integrity buys pre-inspected vehicles wholesale from well known local car dealers, and auto auctions. Integrity continually maintains a diverse stock of vehicles, providing the widest selection for individual needs.

Vehicles are purchased weekly, to add to the current stock on hand. Each vehicle is thoroughly inspected by an ASE mechanic with over 25 years of experience. Only vehicles that pass this critical 26 point inspection are sold on-site.

Integrity Auto Sales sells all types of used vehicles, from sports cars to RVs. We cater to each customer individually, to satisfy their own practical needs.  We buy only the best used vehicles at or below wholesale in order to bring the savings to the customers. Each vehicle is thoroughly inspected by an ASE mechanic with over 25 years of experience. We also offer an auto finding service to customers. If we do not have the vehicle they want in stock, we will find one for them.

Milestones & Metrics

Milestones table, key metrics.

Our key metrics are: 

• # of facebook posts and pageviews 
• # of tweets and retweets
• # of reps that meet and excel their quotas. 
• cogs of our most popular cars
• website page views and shares 
• Follow our customers figure out their favorite cars and features 

Ownership & Structure

Integrity Auto Sales is a privately held corporation. It will be registered as a Subchapter S, with ownership 60%-Jonathan Dinsmore, 40%-Don Mazzioti.

Management Team

Integrity will start with four initial employees. The owner will manage over all operations and the sales manager will manage all buying and selling of inventory. A records clerk and lot attendant will also be hired initially.

Once the gross margin and cash flow will support it, we will hire an additional salesman and lot attendants (tentatively four to six months).

Personnel Table

Financial plan investor-ready personnel plan .">, key assumptions.

We will accept credit cards and trade-ins of any value. Credit cards will have a negative affect on cash flow in that we may not be paid for several days. Trade-ins will also impact cash flow in that they are an asset and have no real value until sold. We will have to limit the number of credit transactions, and only take in quality trades at a wholesale price to facilitate turning a quick profit. The personnel burden is very low because benefits are not paid to part-timers. And the short-term interest rate is extraordinarily low because of current market rates.

We also assume conservative earnings from selling loans and extended warranties will be made.

The other assumption is that current market conditions will remain for the next two to three years. Low rates will have a positive impact on sales and lending for the short term.

Our cash forecast is extremely unrealistic at the far end of the forecast. We leave it like that knowing that we will revise over time. We call it a cushion, and reassurance, not an accurate forecast. 

Revenue by Month

Expenses by month, net profit (or loss) by year, use of funds.

Almost 90% of start-up costs will go to assets. Start-up costs will be financed through a combination of owner’s investment, short-term loans (VA business loan), and long-term borrowing. The start-up chart shows the distribution of financing.

Other miscellaneous expenses include:

• Legal fees for business establishment (ownership, and no sell agreement).
• Stationary, office supplies.
• Marketing/advertising fees.
• Initial consultation to establish records with an accountant.
• Rent for lot and office.
• Establish a Web page for advertising.
• Expensed equipment (two computers, two desk, Fax/copier, phone lines, and office furniture).
• One month initial start-up investment in vehicles.

Sources of Funds

We will be needing $130,000 to start. $100,000 will be a long term business loan. Jonathan will give $20,000 and Don will give $10,000. 

Projected Profit & Loss

Projected balance sheet, projected cash flow statement.

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Used Car Dealership Business Plan [Sample Template]

By: Author Tony Martins Ajaero

Home » Business ideas » Automotive Industry » Car Dealership

Are you about starting a used car dealership business online? If YES, here is a complete sample used car dealership business plan template & FREE feasibility report for starting a used car dealership business .

Used car dealership business as the name implies is all about selling used cars to willing buyers. Aside from the fact that the owners of used car dealership shops are known for selling used cars, they also go out of their way to source for people who want to sell their cars.

They buy used cars at favorable prices and then resell at a good price that guarantees profits for them. In a nutshell, they are in the business of buying and selling used cars.

If you are sure this type of business is what you want to do after you must have conducted your feasibility studies and market research, then the next step to follow is to write a good business plan; a detailed blue print of how you intend raising your seed capital, setting up the business, managing the flow of the business, sorting out tax and marketing your services etc.

The truth is that it is one thing to have a fantastic idea cum business plan but entirely another thing for the business plan to translate to money, which is why it is important to assemble a team of dedicated workers if you want to be successful with your used car dealership business .

Note that you can hardly run this type of business without the right network of other used car dealers. Below is a sample used car dealership business plan template that will help you successfully write yours without much stress;

A Sample Used Car Dealership Business Plan Template

1. Industry Overview

Players in the used car dealership industry sell used cars and they may fall into any of the following niche areas; brick and mortar used cars dealership shop, online used cars dealership shop, used luxury cars dealership business and multi – brand and multi – maker used car dealers.

Recent statistics have it that the total annual revenue for used car dealership in the united states of America is US0 billion with an annual growth of 2.4 percent.

With massive annual sales of nearly US$370 billion, one can confidently say that the used vehicle dealership industry represents almost half of the United States’ auto retail market and it is of course the largest retail segment of the U.S. economy.

For instance, in 2005, approximately 44 million used cars were sold in the United States, which is more than double that of the nearly 17 million new cars sold. The average price of used cars in the United States is $8,786. The industry has 127,940 registered car dealership businesses that employ a total of 237,788 people.

In the United States used car dealership market, the top four major players account for less than 20.0 percent of industry revenue in 2015, with the biggest used car dealer, CarMax dealership, generating about 12.6 percent of revenue. Recent findings also indicate that the industry concentration has increased over the last five years prior to 2015.

The automotive industry with reference to used car dealership is indeed flourishing because more and more consumers are becoming aware of the need to cut unnecessary spending as it relates to purchasing cars, insurance policies and also the need to sell used cars as fast as possible.

Some of the factors that encourage aspiring entrepreneurs to venture into opening a used car dealership shop is the fact that the amount needed to start the business especially when you choose to start a small shop is not on the high side compared to other small – scale businesses.

That makes it easier for entrepreneurs who are interested in the business to come into the industry at any time; the entry barriers are quite affordable and any serious-minded entrepreneur can comfortably raise the startup capital without collecting loans from the bank especially if they can convince owners of used cars who are willing to sell their cars to drop the cars with them while they source for buyers.

Lastly, a used car dealership business might not be entirely easy to start, but one thing is certain, it is a straightforward business that can generate huge and steady profits if well positioned and properly managed.

People often think that starting this type of business does not require any professional skills; in as much as it is true, you would still need a good knowledge of automobiles, good business and bargaining skills and of course customer services skills if indeed you want to build a profitable business.

2. Executive Summary

Jason Hyacinth® Used Car Dealership, Inc. is a registered used car dealership shop that will be located in one of the busiest streets in Spruce, Chestnut and Walnut Streets – Philadelphia.

We have been able to lease a facility that is big enough (a 5 thousand square foot facility) to fit into the design of the kind of standard used car dealership shop that we intend launching and the facility is located in a corner piece along a major road close to the city center.

Jason Hyacinth® Used Car Dealership, Inc. sell and buy used cars from different manufacturers in the United States and abroad. We are set to service a wide range of clientele in and around Philadelphia.

We are aware that there are several large and small online and offline car dealership shops all around Spruce – Philadelphia, which is why we spent time and resources to conduct a thorough feasibility studies and market survey so as to be well positioned to favorably compete with all our competitors. We have an online service option for our customers, and our garage is well secured.

Jason Hyacinth® Used Car Dealership, Inc. will ensure that all our customers are given first class treatment whenever they visit our garage. We have a CRM software that will enable us manage a one on one relationship with our customers no matter how large they may be.

Jason Hyacinth® Used Car Dealership, Inc. will at all times demonstrate her commitment to sustainability, both individually and as a firm, by actively participating in our communities and integrating sustainable business practices wherever possible.

We will ensure that we hold ourselves accountable to the highest standards by meeting our customers’ needs precisely and completely whenever they patronize our used cars.

Jason Hyacinth® Used Car Dealership, Inc. is a family business that is owned by Jason Hyacinth and his immediate family members. Jason Hyacinth has a Diploma in Automotive Technology, over 5 years’ experience in the retailing industry, working for some of the leading brands in the United States.

Although the business is launching out with just one outlet in Spruce, Chestnut and Walnut Streets – Philadelphia, but there is a plan to open other outlets all around major cities in the United States.

3. Our Products and Services

Jason Hyacinth® Used Car Dealership, Inc. is in the used car dealership industry to service a wide range of clients and of course to make profit, which is why we will ensure we go all the way to make available a wide range of used cars from top manufacturing brands in the United States and other countries of the world.

We will ensure that we do all that is permitted by the law of the United States to achieve our aim and objectives of starting the business.

4. Our Mission and Vision Statement

• Our vision is to run a car dealership garage that deals in used cars from all the brands in the United States of America.
• Our mission is to establish a world – class used car dealership garage business that will make available a wide range of used cars from top manufacturing brands at affordable prices to the residence of Philadelphia and other key cities in the United States of America and Canada where we intend opening of chains of used cars dealership garages.

Our Business Structure

Our intention of starting a used car dealership business is to build a standard used car dealership garage in Philadelphia. Although our business might not be as big as CarMax dealership, and AutoNation Inc.et al, but will ensure that we put the right structures in place that will support the kind of growth that we have in mind while setting up the business.

We will ensure that we hire people that are qualified, honest, customer centric and are ready to work to help us build a prosperous business that will benefit all the stakeholders. As a matter of fact, profit-sharing arrangement will be made available to all our senior management staff and it will be based on their performance for a period of ten years or more.

In view of that, we have decided to hire qualified and competent hands to occupy the following positions;

• Chief Executive Officer (Owner)
• Garage Manager
• Human Resources and Admin Manager

Sales and Marketing Manager

Information Technologist

• Accountants/Cashiers
• Sales Agents/Customer Services Executive

5. Job Roles and Responsibilities

Chief Executive Officer – CEO:

• Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results; developing incentives; developing a climate for offering information and opinions; providing educational opportunities.
• Responsible for fixing prices and signing business deals
• Responsible for providing direction for the business
• Creates, communicates, and implements the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
• Responsible for signing checks and documents on behalf of the company
• Evaluates the success of the organization

Admin and HR Manager

• Responsible for overseeing the smooth running of HR and administrative tasks for the organization
• Maintains office supplies by checking stocks; placing and expediting orders; evaluating new products.
• Ensures operation of equipment by completing preventive maintenance requirements; calling for repairs.
• Enhances department and organization reputation by accepting ownership for accomplishing new and different requests; exploring opportunities to add value to job accomplishments.
• Defining job positions for recruitment and managing interviewing process
• Carrying out staff induction for new team members
• Responsible for training, evaluation and assessment of employees
• Responsible for arranging travel, meetings and appointments
• Oversee the smooth running of the daily office cum business activities.

Garage Manager:

• Responsible for managing the daily activities in the used car garage
• Ensures that proper records of cars are kept and the garage does not run out of cars
• Ensures that the garage facility is in tip top shape and cars are properly arranged and easy to locate
• Interfaces with third – party suppliers (vendors)
• Controls distribution and supply chain inventory
• Supervise the workforce in the used car garage sales floor
• Manages external research and coordinate all the internal sources of information to retain the organizations’ best customers and attract new ones
• Models demographic information and analyze the volumes of transactional data generated by customer purchases
• Identifies, prioritizes, and reaches out to new partners, and business opportunities et al
• Identifies development opportunities; follows up on development leads and contacts; participates in the structuring and financing of projects; assures the completion of development projects.
• Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
• Develops, executes and evaluates new plans for expanding sales
• Documents all customer contact and information
• Represents the company in strategic meetings
• Helps to increase sales and growth for the company
• Manages the organization website
• Handles ecommerce aspect of the business
• Responsible for installing and maintenance of computer software and hardware for the organization
• Manages logistics and supply chain software, Web servers, e-commerce software and POS (point of sale) systems
• Manages the organization’s CCTV
• Handles any other technological and IT related duties

Accountant/Cashier:

• Responsible for preparing financial reports, budgets, and financial statements for the organization
• Provides managements with financial analyses, development budgets, and accounting reports
• Responsible for financial forecasting and risks analysis
• Performs cash management, general ledger accounting, and financial reporting
• Responsible for developing and managing financial systems and policies
• Responsible for administering payrolls
• Ensuring compliance with taxation legislation
• Handles all financial transactions for the organization
• Serves as internal auditor for the organization

Client Service Executive

• Ensures that all contacts with clients (e-mail, walk-In center, SMS or phone) provides the client with a personalized customer service experience of the highest level
• Through interaction with customers on the phone, uses every opportunity to build client’s interest in the company’s products and services
• Manages administrative duties assigned by the human resources and admin manager in an effective and timely manner
• Consistently stays abreast of any new information on the organizations’ products, promotional campaigns etc. to ensure accurate and helpful information is supplied to customers when they make enquiries
• Provides information about warranties, manufacturing specifications, care and maintenance of merchandise and delivery options
• Responsible for cleaning and washing all the cars in the garage at all times
• Ensures that toiletries and supplies don’t run out of stock
• Cleans both the interior and exterior of the garage facility
• Handles any other duty as assigned by the garage manager

6. SWOT Analysis

Our intention of opening just one outlet of our used car dealership in Spruce, Chestnut and Walnut Streets – Philadelphia is to test run the business for a period of 2 to 5 years to know if we will invest more money, expand the business and then open other outlets in other cities in the United States.

We are quite aware that there are several used car dealership garages all over Philadelphia and even in the same location where we intend locating ours, which is why we are following the due process of establishing a business. We know that if a proper SWOT analysis is conducted for our business, we will be able to position our business to maximize our strength, leverage on the opportunities that will be available to us, mitigate our risks and be welled equipped to confront our threats.

Jason Hyacinth® Used Car Dealership, Inc. employed the services of an expert HR and Business Analyst with bias in car dealership business to help us conduct a thorough SWOT analysis and to help us create a Business model that will help us achieve our business goals and objectives. This is a summary of the SWOT analysis that was conducted for Jason Hyacinth® Used Car Dealership, Inc.;

Our location, business model (we will operate both a physical garage and online store), varieties of payment options, wide range of used cars from different manufacturing brands and models and our excellent customer service culture will definitely count as a strong strength for Jason Hyacinth® Used Car Dealership, Inc. So also, our team of highly qualify staff is also a plus for us.

A major weakness that may count against us is the fact that we are a new used car dealership garage in Philadelphia and we don’t have the financial capacity to compete with multi – million dollars used car garages when it comes to retailing at a rock bottom prices.

• Opportunities:

The fact that we are going to be operating our used car garage in a corner piece property along a major road close to one of the largest residential estates in Spruce, Chestnut and Walnut Streets – Philadelphia provides us with unlimited opportunities to sell our used cars to a large number of individuals and corporate organizations.

We have been able to conduct thorough feasibility studies and market survey and we know what our potential clients will be looking for when they visit our used car garage.

Just like any other business, one of the major threats that we are likely going to face is economic downturn. It is a fact that economic downturn affects purchasing/spending power. Another threat that may likely confront us is the arrival of a new used car dealership outlet in the same location where ours is located and even online. So also, unfavorable government policies may also pose a threat to businesses such as ours.

7. MARKET ANALYSIS

• Market Trends

Experts projected that in 2017, the used car dealership shops industry is expected to profit from growing global economic conditions. Per capita income levels have scaled across the globe and the growing middle class in emerging economies have looked to purchase their own cars. As the demand for used cars increase, used car dealership garages will make more sales. A decline in demand for new automobiles has stimulated an increase in the sale of used cars.

One notable trend in the used car dealership industry is that most used car dealers are leveraging on online store to sell their cars to a larger market. As a matter of fact, it is easier to sell and export used cars from the United States and Canada to countries in Africa.

Lastly, in recent time, the used car dealership garage landscape has seen tremendous changes in the last 20 years; it has grown from the smaller outlets to a more organized and far reaching venture. The introduction of franchise and online car dealership garage makes it easier for a used car dealership garage to reach out to a larger market far beyond the areas where his physical store is located.

8. Our Target Market

Those who patronize used cars cut across all genders who are above 18 years and with the financial means; hence the target market for used car dealership garage business is all encompassing. Your target market can’t be restricted to just a group of people, but all those who desire to own a car.

In view of that, we have positioned our used car dealership garage to service the residents of Spruce, Chestnut and Walnut Streets – Philadelphia and every other location where our franchise cum outlets will be located all over key cities in the United States of America and Canada. We have conducted our market research and feasibility studies and we have ideas of what our target market would be expecting from us.

We are in business to retail a wide range of used cars to the following groups of people;

• Middle Class Families
• Low Earners

Our Competitive Advantage

A close study of the used car dealership garage industry reveals that the market has become much more intensely competitive over the last decade. As a matter of fact, you have to be highly creative, customer centric and proactive if you must survive in this industry. We are aware of the stiff competition and we are well prepared to compete favorably with other leading used car dealership garages in Philadelphia and throughout the United States and Canada.

Jason Hyacinth® Used Car Dealership, Inc. is launching a standard dealership garage that will indeed become the preferred choice of residents of Spruce, Chestnut and Walnut Streets – Philadelphia and every other location where our outlets will be opened.

One thing is certain; we will ensure that we have a wide range of used cars brands and models from leading manufacturers available in our garage at all times. It will be difficult for customers to visit our garage and not see the type of used car they are looking for.

One of our business goals is to make Jason Hyacinth® Used Car Dealership, Inc. a one stop used car dealership shop. Our excellent customer service culture, online store, various payment options and highly secured facility will serve as a competitive advantage for us.

Lastly, our employees will be well taken care of, and their welfare package will be among the best within our category in the industry meaning that they will be more than willing to build the business with us and help deliver our set goals and achieve all our aims and objectives. We will also give good working conditions and commissions to freelance sales agents that we will recruit from time to time.

9. SALES AND MARKETING STRATEGY

• Sources of Income

Jason Hyacinth® Used Car Dealership, Inc. is in business to retail a wide range of used cars to the residents of Spruce, Chestnut and Walnut Streets – Philadelphia. In essence, our source of income will be the retailing of a wide range of used cars from different car manufacturing brands.

10. Sales Forecast

When it comes to used car dealership business, if your garage is well stocked with various types of used cars from different manufacturing brands and models and centrally positioned, you will always attract customers and that will sure translate to increase in revenue generation for the business.

We are well positioned to take on the available market in Philadelphia and we are quite optimistic that we will meet our set target of generating enough profits from the first six months of operation and grow the business and our clientele base.

We have been able to critically examine the used car dealership industry, we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. The sales projections are based on information gathered on the field and some assumptions that are peculiar to startups in Spruce, Chestnut and Walnut Streets – Philadelphia.

Below are the sales projections for Jason Hyacinth® Used Car Dealership, Inc. it is based on the location of our business and other factors as it relates to used car dealership garage startups in the United States;

• First Fiscal Year: $450,000
• Second Fiscal Year: $750,000
• Third Fiscal Year: $1.2 Million

N.B : This projection was done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and any major competitor within our market space. Please note that the above projection might be lower and at the same time it might be higher.

• Marketing Strategy and Sales Strategy

Before choosing a location for Jason Hyacinth® Used Car Dealership, Inc. we conduct a thorough market survey and feasibility studies in order for us to penetrate the available market and become the preferred choice for residents of Spruce – Philadelphia. We have detailed information and data that we were able to utilize to structure our business to attract the number of customers we want to attract per time.

We hired experts who have good understanding of the used car dealership industry to help us develop marketing strategies that will help us achieve our business goal of winning a larger percentage of the available market in Spruce – Philadelphia.

In summary, Jason Hyacinth® Used Car Dealership, Inc. will adopt the following sales and marketing approach to win customers over;

• Open our used car dealership garage in a grand style with a party for all
• Introduce our used car dealership garage by sending introductory letters alongside our brochure to households, offices and other key stakeholders in and around Spruce -Philadelphia
• Ensure that we have a wide range of used cars from different brands at all times.
• Make use of attractive hand bills to create awareness and also to give direction to our garage
• Position our signage/flexi banners at strategic places around Spruce, Chestnut and Walnut Streets – Philadelphia
• Position our greeters to welcome and direct potential customers
• Create a loyalty plan that will enable us reward our regular customers
• Engage on roadshows within our neighborhood to create awareness for our used car garage
• List our business and products on yellow pages ads (local directories)
• Leverage on the internet to promote our business
• Engage in direct marketing and sales
• Encourage the use of Word of mouth marketing (referrals)

11. Publicity and Advertising Strategy

Despite the fact that our used car dealership garage is well located, we will still go ahead to intensify publicity for the business.

Jason Hyacinth® Used Car Dealership, Inc. has a long-term plan of opening outlets in various locations all around key cities in the United States and Canada which is why we will deliberately build our brand to be well accepted in Philadelphia before venturing out.

As a matter of fact, our publicity and advertising strategy is not solely for winning customers over but to effectively communicate our brand. Here are the platforms we intend leveraging on to promote and advertise Jason Hyacinth® Used Car Dealership, Inc.;

• Place adverts on community based newspapers, radio and TV stations
• Encourage the use of word of mouth publicity from our loyal customers
• Leverage on the internet and social media platforms like YouTube, Instagram, Facebook, Twitter, LinkedIn, Snapchat, Google+ and other platforms to promote our business.
• Ensure that our we position our banners and billboards in strategic positions all around Spruce, Chestnut and Walnut Streets – Philadelphia
• Distribute our fliers and handbills in target areas in and around our neighborhood
• Advertise our used cars dealership business in our official website and employ strategies that will help us pull traffic to the site
• Brand all our official cars and trucks and ensure that all our staff members and management staff wear our branded shirt or cap at regular intervals

12. Our Pricing Strategy

Aside from quality, pricing is one of the key factors that gives leverage to used car dealership garages, it is normal for consumers to go to places where they can get used cars at cheaper prices which is why big players in the industry will attract loads of clients.

We know we don’t have the capacity to compete with big players in the used car dealership industry but we will ensure that the prices and quality of all the used cars that are available in our garage are competitive with what is obtainable amongst used car garages within our level.

• Payment Options

The payment policy adopted by Jason Hyacinth® Used Car Dealership, Inc. is all inclusive because we are quite aware that different customers prefer different payment options as it suits them but at the same time, we will ensure that we abide by the financial rules and regulation of the United States of America.

Here are the payment options that Jason Hyacinth® Used Car Dealership, Inc. will make available to her clients;

• Payment via bank transfer
• Payment with cash
• Payment via credit cards / Point of Sale Machines
• Payment via online bank transfer
• Payment via check
• Payment via mobile money transfer
• Payment via bank draft

In view of the above, we have chosen banking platforms that will enable our client make payment for purchasing our used cars without any stress on their part. Our bank account numbers will be made available on our website and promotional materials to clients who may want to deposit cash or make online transfers for our used cars.

13. Startup Expenditure (Budget)

In setting up any business, the amount or cost will depend on the approach and scale you want to undertake. If you intend to go big by renting/leasing a big facility, then you would need a good amount of capital as you would need to ensure that your employees are well taken care of, and that your facility is conducive enough for workers to be productive.

The materials and equipment that will be used are nearly the same cost everywhere, and any difference in prices would be minimal and can be overlooked. As for the detailed cost analysis for starting a used car dealership business; it might differ in other countries due to the value of their money.

These are the key areas where we will spend our startup capital;

• The total fee for registering the business in the Unites States of America – $750
• Legal expenses for obtaining licenses and permits as well as the accounting services (software, P.O.S machines and other software) – $3,300
• Marketing promotion expenses for the grand opening of Jason Hyacinth® Used Car Dealership, Inc. in the amount of $3,500 and as well as flyer printing (2,000 flyers at $0.04 per copy) for the total amount of $3,580
• The cost for hiring business consultant – $2,500
• Insurance (general liability, workers’ compensation and property casualty) coverage at a total premium – $2,400
• The cost for payment of rent for 12 months at $1.76 per square feet in the total amount of $105,600
• The cost for garage remodeling – $20,000
• Other start-up expenses including stationery ($500) and phone and utility deposits ( $2,500 )
• Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $60,000
• The cost for start-up inventory (stocking with a wide range of used cars from different manufacturing brands) – $350,000
• The cost for counter area equipment – $9,500
• The cost for store equipment (cash register, security, ventilation, signage) – $13,750
• The cost of purchase and installation of CCTVs: $10,000
• The cost for the purchase of office furniture and gadgets (Computers, Printers, Telephone, TVs, Sound System, tables and chairs et al): $4,000
• The cost of launching a website: $600
• The cost for our opening party: $7,000
• Miscellaneous: $10,000

We would need an estimate of $750,000 to successfully set up our standard used car dealership garage in Spruce – Philadelphia.

Generating Startup Capital for Jason Hyacinth® Used Car Dealership, Inc.

Jason Hyacinth® Used Car Dealership, Inc. is a private registered business that is solely owned and financed by Jason Hyacinth and his immediate family members. They do not intend to welcome any external business partner which is why he has decided to restrict the sourcing of the startup capital to 3 major sources.

These are the areas we intend generating our startup capital;

• Generate part of the startup capital from personal savings
• Source for soft loans from family members and friends
• Apply for loan from my Bank

N.B: We have been able to generate about $250,000 ( Personal savings $200,000 and soft loan from family members $50,000 ) and we are at the final stages of obtaining a loan facility of $500,000 from our bank. All the papers and documents have been signed and submitted, the loan has been approved and any moment from now our account will be credited with the amount.

14. Sustainability and Expansion Strategy

The future of a business lies in the number of loyal customers that they have, the capacity and competence of their employees, their investment strategy and the business structure. If all of these factors are missing from a business, then it won’t be too long before the business close shop.

One of our major goals of starting Jason Hyacinth® Used Car Dealership, Inc. is to build a business that will survive off its own cash flow without injecting finance from external sources once the business is officially running. We know that one of the ways of gaining approval and winning customers over is to retail our wide range of used cars a little bit cheaper than what is obtainable in the market and we are well prepared to survive on lower profit margin for a while.

Jason Hyacinth® Used Car Dealership, Inc. will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and retraining of our workforce is at the top burner.

We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.

Check List/Milestone

• Business Name Availability Check: Completed
• Business Registration: Completed
• Opening of Corporate Bank Accounts: Completed
• Securing Point of Sales (POS) Machines: Completed
• Opening Mobile Money Accounts: Completed
• Opening Online Payment Platforms: Completed
• Application and Obtaining Tax Payer’s ID: In Progress
• Application for business license and permit: Completed
• Purchase of Insurance for the Business: Completed
• Leasing of facility and remodeling the garage: In Progress
• Conducting Feasibility Studies: Completed
• Generating capital from family members: Completed
• Applications for Loan from the bank: In Progress
• Writing of Business Plan: Completed
• Drafting of Employee’s Handbook: Completed
• Drafting of Contract Documents and other relevant Legal Documents: In Progress
• Design of The Company’s Logo: Completed
• Graphic Designs and Printing of Promotional Materials: In Progress
• Recruitment of employees: In Progress
• Purchase of the needed furniture, computers, electronic appliances, office appliances and CCTV: In progress
• Creating Official Website for the Company: In Progress
• Creating Awareness for the business both online and around the community: In Progress
• Health and Safety and Fire Safety Arrangement (License): Secured
• Opening party planning: In Progress
• Compilation of list of used cars available in our garage: Completed
• Establishing business relationship with vendors – used cars auction houses and other used cars dealership garages: In Progress

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Sample Used Car Dealership Business Plan

Writing a business plan is a crucial step in starting a used car dealership business. Not only does it provide structure and guidance for the future, but it also helps to create funding opportunities and attract potential investors. For aspiring used car dealership business owners, having access to a sample used car dealership business plan can be especially helpful in providing direction and gaining insight into how to draft their own used car dealership business plan.

Download our Ultimate Used Car Dealership Business Plan Template

Having a thorough business plan in place is critical for any successful used car dealership business venture. It will serve as the foundation for your operations, setting out the goals and objectives that will help guide your decisions and actions. A well-written business plan can give you clarity on realistic financial projections and help you secure financing from lenders or investors. A used car dealership business plan example can be a great resource to draw upon when creating your own plan, making sure that all the key components are included in your document.

The used car dealership business plan sample below will give you an idea of what one should look like. It is not as comprehensive and successful in raising capital for your used car dealership business as Growthink’s Ultimate Used Car Dealership Business Plan Template , but it can help you write a used car dealership business plan of your own.

Used Car Dealership Business Plan Example – PreLoved Motors

Table of contents, executive summary, company overview, industry analysis, customer analysis, competitive analysis, marketing plan, operations plan, management team, financial plan.

PreLoved Motors, situated in the bustling heart of the St. Louis, MO area, is a pioneering used car dealership dedicated to offering an expansive selection of high-quality, pre-owned vehicles. Our business model is built on the foundation of trust, reliability, and exceptional customer service, aiming to redefine the used car buying experience. By focusing on meticulously vetted, versatile vehicles, we ensure our customers receive cars that are not just reliable but also offer the best value for their money. Our commitment to affordability, without compromising on quality, positions us as a unique entity in the competitive used car market, making vehicle ownership accessible to a broader demographic in our community.

Key to our success has been our ability to curate a diverse inventory that meets the high standards of condition and reliability our customers expect. This commitment, combined with competitive pricing and a customer-centric sales approach, has allowed us to stand out in a crowded marketplace. To date, our accomplishments include establishing a loyal customer base, building a strong brand presence in the St. Louis area, and consistently achieving positive feedback for our service quality and vehicle lineup. Our adeptness at adapting to market demands and customer needs continues to fuel our growth and success in the used car dealership industry.

The used car dealership industry is undergoing significant transformation, driven by shifting consumer preferences towards more cost-effective and reliable transportation options. The demand for pre-owned vehicles has seen a steady increase, particularly in urban areas like St. Louis, MO, where economic considerations play a crucial role in consumer purchase decisions. This trend is further bolstered by advancements in vehicle technology and maintenance, which have extended the lifespan of cars, making used vehicles an even more attractive option for budget-conscious buyers. However, the industry is also characterized by intense competition, with dealerships vying to offer the best mix of quality, price, and service to attract discerning customers. In this dynamic environment, dealerships that can effectively differentiate themselves through superior product offerings and exceptional customer service are poised to capture significant market share.

Our target customers range from first-time car buyers to seasoned vehicle enthusiasts, all seeking reliable, affordable pre-owned vehicles in the St. Louis, MO area. These individuals prioritize value for money, vehicle reliability, and a transparent, hassle-free buying experience. Our market research indicates a growing segment of environmentally conscious consumers interested in fuel-efficient and hybrid models, reflecting broader societal shifts towards sustainability. Catering to this diverse clientele, we tailor our inventory and services to meet the nuanced needs and preferences of our customer base, ensuring a personalized, satisfying purchase journey for every buyer.

Enterprise Car Sales, iAutoAgent, and 123 Auto are our main competitors, each with their unique selling propositions from wide-ranging inventories to personalized brokerage services. However, PreLoved Motors distinguishes itself through a curated selection of quality vehicles, competitive pricing, and a transparent, customer-first sales approach. Our deep understanding of local market dynamics and consumer preferences enables us to offer tailored solutions that not only meet but exceed customer expectations, setting us apart as a trusted name in the used car industry.

At PreLoved Motors, our product lineup is carefully selected to ensure a wide range of high-quality, reliable pre-owned vehicles that cater to various customer needs and preferences. We emphasize competitive pricing to make vehicle ownership accessible to a broader audience, without compromising on quality. Our promotions plan is multifaceted, leveraging both digital and traditional marketing channels to reach potential customers effectively. We focus on digital marketing strategies, including SEO, social media advertising, and email marketing, to build brand awareness and engage with our audience. Simultaneously, local community engagement and strategic partnerships are employed to establish a strong local presence and drive foot traffic to our dealership.

Our operational strategy is centered around maintaining a seamless flow from vehicle acquisition to customer sale, ensuring each car meets our stringent quality standards before it reaches the showroom floor. Key operational processes include meticulous vehicle inspection, certification, and detailing, alongside efficient inventory management to keep pace with market demand. Milestones to be accomplished involve expanding our inventory to include electric and hybrid vehicles, implementing a customer relationship management (CRM) system to enhance customer service, and achieving a set sales growth target in the next fiscal year, thereby solidifying our market position.

The management team at PreLoved Motors is a blend of industry veterans and dynamic young professionals, bringing together decades of experience in automotive sales, marketing, and operations. Our leadership is committed to fostering a culture of innovation, excellence, and integrity, guiding the company towards sustained growth and success in the competitive used car market. This diverse expertise ensures that we remain agile in our strategic approach, capable of navigating industry challenges while capitalizing on emerging opportunities.

At PreLoved Motors, we are proud to introduce ourselves as a new Used Car Dealership dedicated to serving the unique needs of the St. Louis, MO community. Our establishment fills a significant gap in the local market for high-quality, pre-owned vehicles. Unlike the existing offerings, we focus on delivering exceptional value and customer service, ensuring every customer finds the perfect vehicle to match their needs and budget.

Our product lineup is extensive, featuring a diverse range of vehicles to cater to the varied preferences and requirements of our customers. From sedans that combine efficiency and comfort, to SUVs (Sport Utility Vehicles) that offer the versatility for both city driving and off-road adventures, we have something for everyone. For customers in need of robust performance, our selection of trucks is second to none. We also stock an exciting range of coupes and convertibles for those seeking a more exhilarating driving experience. Additionally, our vans and minivans are perfect for families or businesses looking for practical, spacious vehicle solutions.

PreLoved Motors is strategically located in St. Louis, MO, making it accessible to customers throughout the city and beyond. Our commitment to serving the St. Louis community is unwavering, and we aim to become a trusted partner for anyone looking to purchase a high-quality used vehicle.

We are uniquely positioned for success, thanks to a combination of factors. Firstly, our founder brings invaluable experience from previously operating a successful used car dealership, ensuring that we have the knowledge and expertise to thrive in this industry. Secondly, our inventory stands out for its versatility, practicality, and affordability. We meticulously select vehicles that not only meet but exceed the expectations of our customers in terms of condition and value for money. This commitment to excellence sets us apart from our competitors and forms the foundation of our business.

Since our founding on January 3, 2024, PreLoved Motors has achieved several significant milestones. As an S Corporation, we have laid a solid foundation for our business operations. Our accomplishments to date include the creation of a distinctive logo that reflects our brand identity, the development of our company name that resonates with our mission, and securing a prime location that offers convenience and visibility to our customers. These achievements are just the beginning of our journey towards becoming the premier choice for used cars in St. Louis, MO.

The Used Car Dealership industry in the United States is a thriving market with a current size of over $120 billion. This industry has shown steady growth over the past few years, with an expected annual growth rate of 2.5% in the next five years. This growth can be attributed to several factors, including the increasing demand for affordable vehicles and the rising popularity of certified pre-owned cars.

One of the key trends in the Used Car Dealership industry is the shift towards online sales and digital platforms. Consumers are increasingly turning to online channels to research, compare, and purchase used cars, making it essential for dealerships to have a strong online presence. This trend bodes well for PreLoved Motors, as a new dealership in St. Louis, MO, as it can leverage digital marketing strategies to reach a wider audience and attract more customers.

Another trend in the industry is the growing focus on customer experience and transparency. Consumers are becoming more informed and cautious when purchasing used cars, placing a premium on dealerships that offer quality vehicles and trustworthy services. PreLoved Motors can differentiate itself by providing excellent customer service, offering detailed vehicle histories, and establishing a reputation for honesty and integrity in the market.

Below is a description of our target customers and their core needs.

Target Customers

PreLoved Motors will target local residents looking for affordable and reliable transportation options. This customer segment is primarily composed of individuals and families seeking value in the used car market, aiming to maximize their investment without compromising on quality. The dealership will tailor its inventory and services to meet the needs of this diverse group, ensuring a wide range of vehicles that cater to various preferences and budgets.

In addition to local residents, PreLoved Motors will also attract first-time car buyers. This group is typically searching for economical choices and may require guidance through the purchasing process. The dealership will provide educational resources and personalized assistance, making the car buying journey as smooth and reassuring as possible for these customers.

Another significant customer segment includes individuals looking for specialty vehicles or those interested in cars with unique features. PreLoved Motors will cater to enthusiasts and collectors seeking rare finds or specific models not readily available in the new car market. By maintaining a varied and intriguing inventory, the dealership will become a go-to destination for those pursuing distinct automotive experiences.

Customer Needs

PreLoved Motors recognizes the importance of providing high-quality vehicles to residents who prioritize reliability and value in their automotive choices. Customers can expect a carefully curated selection of pre-owned cars that meet strict standards for performance, safety, and aesthetics. This commitment ensures that every vehicle on the lot is not only a mode of transportation but also a source of pride for its new owner.

In addition to offering high-quality vehicles, PreLoved Motors understands the significance of an exceptional purchasing experience. Customers can anticipate attentive service that focuses on their unique needs and preferences, making the car buying process both enjoyable and efficient. The dealership also offers comprehensive after-sales support, ensuring that customers have access to maintenance and advice, further enhancing the longevity and enjoyment of their vehicles.

Moreover, PreLoved Motors caters to the financial needs of its customers by providing flexible financing options. This approach allows individuals from various economic backgrounds to find a vehicle that fits their budget without compromising on quality. By facilitating easier access to financing, PreLoved Motors ensures that more residents can experience the joy and convenience of owning a dependable and aesthetically pleasing vehicle.

PreLoved Motors’s competitors include the following companies:

Enterprise Car Sales offers a wide range of used vehicles, including cars, trucks, and SUVs. Their price points vary significantly, depending on the vehicle’s make, model, year, and condition. Enterprise Car Sales generates significant revenue, leveraging its brand strength and extensive network of car rental locations that serve as sources for many of its used vehicles for sale. Enterprise Car Sales has locations across the United States, making it accessible to a broad customer segment. They serve individual buyers looking for reliable used vehicles and business clients seeking fleet solutions. The company’s key strengths include a large and diverse inventory, a well-known brand, and a comprehensive certification process that ensures the quality of their vehicles. However, their prices can be higher than those of smaller competitors due to their brand prestige and certification processes.

iAutoAgent differentiates itself by offering a broker-like service for buyers and sellers of used cars. They facilitate the sale process, aiming to get sellers the highest price for their vehicle while providing buyers with a transparent and hassle-free purchasing experience. iAutoAgent’s revenue comes from commissions and fees associated with their brokerage services. iAutoAgent operates primarily in the St. Louis, MO area, focusing on local clients but also dealing with customers from neighboring regions. They cater to individual buyers and sellers, emphasizing quality customer service and convenience. Key strengths include personalized service and a hassle-free buying and selling process. However, their reliance on local markets might limit their growth potential compared to larger, nationwide competitors.

123 Auto is a used car dealership known for offering a wide selection of vehicles at competitive prices. They focus on affordability, aiming to attract budget-conscious buyers. Their revenue is generated through vehicle sales, with an emphasis on volume over high margins. 123 Auto operates in the St. Louis, MO area, serving a similar geographical market as PreLoved Motors. Their primary customer segment includes individuals looking for affordable used cars, particularly first-time buyers and those with limited budgets. The dealership’s key strengths are its competitive pricing and diverse inventory. However, their focus on lower-priced vehicles might affect their perceived quality and limit their appeal to customers with higher budgets.

Competitive Advantages

At PreLoved Motors, we pride ourselves on offering a diverse selection of versatile and practical vehicles that stand out in the market. Our inventory is carefully curated to ensure that each car meets our high standards of condition and reliability, providing our customers with peace of mind in their purchases. Our commitment to affordability further sets us apart, as we strive to offer competitive pricing that makes owning a quality pre-owned vehicle accessible to a wide range of buyers. This combination of quality, variety, and value positions us as a leader in the used car dealership industry, catering to the unique needs and preferences of our clientele in the most efficient and cost-effective manner possible.

Beyond our diverse inventory and competitive pricing, our customer service philosophy also serves as a significant competitive advantage. We believe in a transparent, no-pressure sales environment that allows our customers to explore their options comfortably and make informed decisions. Our knowledgeable team is dedicated to providing personalized assistance, ensuring that each customer finds a vehicle that perfectly fits their lifestyle and budget. This customer-centric approach has cultivated a loyal customer base and distinguishes us from competitors who might prioritize sales over service. By combining outstanding vehicles, fair pricing, and exceptional customer service, we not only meet but exceed customer expectations, solidifying our position as a trusted name in the used car market.

Our marketing plan, included below, details our products/services, pricing and promotions plan.

Products and Services

At PreLoved Motors, customers can find a diverse range of quality used vehicles tailored to fulfill various driving needs and preferences. The dealership prides itself on offering an assortment of automotive categories, including sedans, SUVs (Sport Utility Vehicles), trucks, coupes and convertibles, as well as vans and minivans. Each category comes with an average selling price, ensuring that prospective buyers can make informed decisions based on their budget and requirements.

Sedans are a staple at PreLoved Motors, known for their practicality and fuel efficiency. Ideal for daily commutes and long-distance travel, these vehicles are offered with an average selling price of around $15,000. This price range allows customers to access a variety of models and trims that cater to both economy and luxury preferences.

SUVs stand out for their versatility and space, making them perfect for families and adventure enthusiasts alike. At PreLoved Motors, customers can explore a wide selection of SUVs with an average selling price of $20,000. This price bracket encompasses a range of sizes from compact to full-size SUVs, each equipped with features that enhance comfort, safety, and off-road capability.

For those requiring robust performance and hauling capacity, trucks are an excellent option. PreLoved Motors offers a collection of used trucks with an average selling price of $25,000. This segment includes both light-duty and heavy-duty trucks, catering to various commercial and personal use cases, ensuring that customers find the right balance between power and efficiency.

Coupes and convertibles at PreLoved Motors appeal to those seeking a blend of style and performance. With an average selling price of $18,000, customers can expect to discover models that offer exhilarating driving experiences without compromising on luxury and technological advancements. These vehicles are perfect for driving enthusiasts looking to enjoy the road to its fullest.

Last but not least, vans and minivans are the go-to options for customers prioritizing space and convenience for family or group travels. With an average selling price of $17,000, PreLoved Motors provides access to a range of vehicles that offer ample seating, cargo space, and advanced safety features, ensuring a comfortable and secure journey.

In summary, PreLoved Motors caters to a wide audience by offering a comprehensive selection of used vehicles across various categories, each with a competitive average selling price. Whether customers are in search of economy, luxury, performance, or practicality, they can expect to find a vehicle that not only meets their needs but also fits their budget.

Promotions Plan

PreLoved Motors embarks on a strategic journey to attract customers through a comprehensive blend of promotional methods. In the heart of these efforts lies online marketing, a cornerstone that enables the dealership to connect with a vast audience. The company leverages social media platforms, search engine optimization (SEO), and email marketing to create a robust online presence. Social media campaigns on platforms like Facebook, Instagram, and Twitter serve as a direct line to potential customers, offering them a glimpse into the quality and variety of vehicles available. By optimizing their website for search engines, PreLoved Motors ensures that when prospective buyers search for used cars in St. Louis, MO, their dealership appears among the top results, significantly increasing visibility.

Email marketing campaigns are meticulously crafted to keep subscribers informed about the latest deals, new inventory arrivals, and exclusive promotions, fostering a sense of community and loyalty among customers. Furthermore, PreLoved Motors embraces the power of content marketing, crafting engaging blog posts and videos that showcase their expertise in the used car market, driving traffic to their website, and establishing trust with their audience.

Beyond the digital realm, PreLoved Motors invests in local community engagement to build brand awareness and cultivate strong relationships with potential customers. Participating in local events, sponsoring community sports teams, or hosting car maintenance workshops exemplify how the dealership embeds itself into the fabric of the St. Louis community. These initiatives not only enhance visibility but also demonstrate PreLoved Motors’ commitment to contributing positively to the community they serve.

Customer referrals play a pivotal role in the promotional strategy. Encouraging satisfied customers to refer friends and family through a referral program with incentives for both the referrer and the referee ensures a continuous pipeline of potential buyers. This word-of-mouth marketing is invaluable, as personal recommendations carry significant weight in purchasing decisions.

To complement these efforts, PreLoved Motors also explores traditional advertising avenues such as radio spots, local newspapers, and billboards strategically placed around St. Louis. This multi-channel approach ensures that the dealership remains top of mind for a diverse demographic, spanning those who are deeply embedded in digital landscapes to those who appreciate more traditional forms of media.

In summary, PreLoved Motors employs a dynamic mix of online marketing, community engagement, customer referral programs, and traditional advertising to create a comprehensive promotional strategy. By connecting with the community both online and offline, the dealership expects to attract a wide range of customers, making it a go-to destination for quality used vehicles in St. Louis, MO.

Our Operations Plan details:

• The key day-to-day processes that our business performs to serve our customers
• The key business milestones that our company expects to accomplish as we grow

Key Operational Processes

To ensure the success of PreLoved Motors, there are several key day-to-day operational processes that we will perform.

• Inventory Management: We constantly monitor and update our inventory to ensure a wide selection of quality used cars. This includes purchasing vehicles at auctions, from private sellers, and accepting trade-ins.
• Vehicle Inspection and Maintenance: Every car undergoes a thorough inspection and any necessary maintenance or repairs before it is listed for sale. This ensures all vehicles meet our high standards for quality and safety.
• Pricing Strategy: We regularly analyze market data to price our vehicles competitively. This involves reviewing local and national sales trends for similar vehicles and adjusting prices to offer the best value to our customers.
• Customer Service: We prioritize excellent customer service, ensuring every visitor receives personal attention. This includes responding promptly to inquiries, offering test drives, and providing transparent information about each vehicle.
• Financing and Insurance Assistance: We assist customers with securing financing and insurance for their vehicle purchases. This involves working with a network of lenders and insurance providers to offer competitive rates and terms.
• Marketing and Advertising: We implement targeted marketing and advertising campaigns to attract potential buyers. This includes online advertising, social media engagement, and local community events.
• Sales Process Management: We streamline the sales process to make purchasing a vehicle as smooth and efficient as possible. This includes negotiating deals, processing paperwork, and offering warranties or service contracts.
• After-Sales Support: We provide ongoing support to our customers after their purchase. This includes follow-up calls to ensure satisfaction, offering maintenance services, and addressing any concerns or issues that may arise.
• Staff Training and Development: We invest in regular training and development for our team to ensure they are knowledgeable about our inventory, finance options, and customer service best practices.
• Compliance and Legal Requirements: We ensure all business operations comply with local, state, and federal regulations, including vehicle sales laws, consumer protection statutes, and environmental standards.

PreLoved Motors expects to complete the following milestones in the coming months in order to ensure its success:

• Securing a Prime Location : Identifying and securing a strategically located dealership space in St. Louis, MO, that is accessible and visible to our target customer base. This involves negotiating a favorable lease that aligns with our financial projections and growth plans.
• Obtaining Necessary Licenses and Permits : Completing all regulatory requirements, including obtaining a used car dealership license, business license, and any other permits required by local, state, and federal laws. This ensures compliance and legal operation within the industry.
• Building Inventory Acquisition Channels : Establishing reliable channels for acquiring a diverse and quality inventory of used cars. This includes forming partnerships with auction houses, rental car companies, and trade-in programs to ensure a steady supply of vehicles that meet our quality standards and customer preferences.
• Developing a Robust Sales and Marketing Strategy : Crafting and implementing a comprehensive sales and marketing plan that includes digital marketing, local advertising, and community engagement activities to build brand awareness and drive traffic to the dealership.
• Setting Up Operational Infrastructure : Creating the operational backbone of the dealership, including the development of sales processes, customer service protocols, financial management systems, and the implementation of a CRM system to manage leads and customer interactions efficiently.
• Hiring and Training a High-Performing Team : Recruiting a team of experienced salespeople, finance experts, and administrative staff. Providing comprehensive training to ensure they are equipped with the knowledge and skills to deliver exceptional customer service and drive sales.
• Launch Our Used Car Dealership : Officially opening PreLoved Motors for business with a launch event to generate buzz in the community and attract our first customers.
• Implementing Customer Feedback Mechanisms : Establishing channels for customer feedback to continuously improve our inventory selection, customer service, and overall buying experience based on direct input from our clients.
• Achieving $15,000/Month in Revenue : Reaching this critical financial milestone to demonstrate market acceptance, operational efficiency, and the potential for scalability and long-term profitability.
• Continuous Monitoring and Adjusting of Business Strategy : Regularly reviewing financial performance, market trends, and customer feedback to make informed decisions on inventory, pricing, marketing strategies, and operational adjustments to ensure sustained growth and success.

PreLoved Motors management team, which includes the following members, has the experience and expertise to successfully execute on our business plan:

Ariana Bell, CEO

Ariana Bell, CEO, brings to PreLoved Motors a track record of undeniable success in the automotive industry. With her extensive experience in running a used car dealership, Ariana has shown an exceptional ability to navigate the complexities of the used car market, drive sales, and maintain high customer satisfaction. Her leadership skills, combined with a deep understanding of market trends and consumer behavior, make her uniquely qualified to steer PreLoved Motors towards lasting success. Ariana’s vision for the company is not just about selling cars; it’s about creating a trusted brand in the pre-owned vehicle sector, ensuring that every customer feels valued and confident in their purchase.

To achieve our growth objectives, PreLoved Motors requires significant capital investment. This funding will be allocated towards expanding our vehicle inventory, enhancing our marketing efforts, and upgrading our facilities to improve the customer experience. Our financial plan is designed to ensure we have the resources needed to scale our operations effectively, drive sales growth, and maintain our competitive edge in the market.

Financial Statements

Balance sheet.

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Income Statement

[insert income statement]

Cash Flow Statement

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Used Car Dealership Business Plan Example PDF

Download our Used Car Dealership Business Plan PDF here. This is a free used car dealership business plan example to help you get started on your own used car dealership plan.  

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Auto Parts Store Business Plan PDF Example

• May 29, 2024
• Business Plan

Creating a comprehensive business plan is crucial for launching and running a successful auto parts store. This plan serves as your roadmap, detailing your vision, operational strategies, and financial plan. It helps establish your auto parts store’s identity, navigate the competitive market, and secure funding for growth.

This article not only breaks down the critical components of an auto parts store business plan, but also provides an example of a business plan to help you craft your own.

Whether you’re an experienced entrepreneur or new to the retail industry, this guide, complete with a business plan example, lays the groundwork for turning your auto parts store concept into reality. Let’s dive in!

Our auto parts store business plan is structured to cover all essential aspects needed for a comprehensive strategy. It outlines the store’s operations, marketing strategy , market environment, competitors, management team, and financial forecasts.

• Executive Summary : Offers an overview of your auto parts store’s business concept, market analysis , management, and financial strategy.
• Store & Location: Describes the store’s design, amenities, and why its location is appealing to potential clients.
• Supply & Products: Lists the products provided by your auto parts store, including types of auto parts and pricing structure.
• Key Stats: Shares industry size , growth trends, and relevant statistics for the auto parts market.
• Key Trends: Highlights recent trends affecting the auto parts sector.
• Key Competitors : Analyzes main competitors nearby and how your store differs from them.
• SWOT : Strengths, weaknesses, opportunities, and threats analysis.
• Marketing Plan : Strategies for attracting and retaining customers.
• Timeline : Key milestones and objectives from start-up through the first year of operation.
• Management: Information on who manages the auto parts store and their roles.
• Financial Plan: Projects the store’s 5-year financial performance, including revenue, profits, and expected expenses.

Auto Parts Store Business Plan

Fully editable 30+ slides Powerpoint presentation business plan template.

Download an expert-built 30+ slides Powerpoint business plan template

Executive Summary

The Executive Summary introduces your auto parts store’s business plan, offering a concise overview of your store and its services. It should detail your market positioning, the range of auto parts and accessories you offer, its location, size, and an outline of day-to-day operations.

This section should also explore how your auto parts store will integrate into the local market, including the number of direct competitors within the area, identifying who they are, along with your store’s unique selling points that differentiate it from these competitors.

Furthermore, you should include information about the management and co-founding team, detailing their roles and contributions to the store’s success. Additionally, a summary of your financial projections, including revenue and profits over the next five years, should be presented here to provide a clear picture of your store’s financial plan.

Make sure to cover here _ Business Overview _ Market Overview _ Management Team _ Financial Plan

Dive deeper into Executive Summary

Business Overview

For an auto parts store, the Business Overview section can be concisely divided into 2 main slides:

Store & Location

Briefly describe the store’s physical environment, emphasizing its layout, organization, and the overall atmosphere that welcomes customers. Mention the store’s location, highlighting its accessibility and the convenience it offers to customers, such as proximity to major highways, shopping centers, or ample parking space. Explain why this location is advantageous in attracting your target clientele.

Supply & Products

Detail the range of auto parts and accessories offered, from essential components like brake pads and filters to specialized parts for various vehicle makes and models. Outline your pricing strategy , ensuring it reflects the quality of products provided and matches the market you’re targeting. Highlight any packages, bulk purchase deals, or loyalty programs that provide added value to your customers, encouraging repeat business and customer loyalty.

Make sure to cover here _ Store & Location _ Services & Products

Market Overview

Industry size & growth.

In the Market Overview of your auto parts store business plan, start by examining the size of the auto parts industry and its growth potential. This analysis is crucial for understanding the market’s scope and identifying expansion opportunities.

Key Market Trends

Proceed to discuss recent market trends , such as the increasing demand for high-quality aftermarket parts, the shift towards online sales and digital platforms, and the growing interest in environmentally friendly and fuel-efficient automotive products. For example, highlight the demand for parts that cater to specific vehicle makes and models, alongside the rising popularity of DIY vehicle maintenance and repair.

Key Competitors

Then, consider the competitive landscape, which includes a range of auto parts stores from large chain retailers to independent shops, as well as online retailers. Emphasize what makes your store distinctive, whether it’s through exceptional customer service, a unique range of products, or specialization in certain types of auto parts. This section will help articulate the demand for auto parts, the competitive environment, and how your store is positioned to thrive within this dynamic market.

Make sure to cover here _ Industry size & growth _ Key competitors _ Key market trends

Dive deeper into Key competitors

First, conduct a SWOT analysis for the auto parts store , highlighting Strengths (such as an extensive inventory of high-quality auto parts and knowledgeable staff), Weaknesses (including high operational costs and strong competition), Opportunities (for example, the growing trend in DIY vehicle maintenance and repair), and Threats (such as economic downturns that may decrease consumer spending on auto parts).

Marketing Plan

Next, develop a marketing strategy that outlines how to attract and retain customers through targeted advertising, promotional discounts, an engaging social media presence, and community involvement.

Finally, create a detailed timeline that outlines critical milestones for the auto parts store’s opening, marketing efforts, customer base growth, and expansion objectives, ensuring the business moves forward with clear direction and purpose.

Make sure to cover here _ SWOT _ Marketing Plan _ Timeline

Dive deeper into SWOT

Dive deeper into Marketing Plan

The Management section focuses on the auto parts store’s management and their direct roles in daily operations and strategic direction. This part is crucial for understanding who is responsible for making key decisions and driving the auto parts store toward its financial and operational goals.

For your auto parts store business plan, list the core team members, their specific responsibilities, and how their expertise supports the business.

Financial Plan

The Financial Plan section is a comprehensive analysis of your financial projections for revenue, expenses, and profitability. It lays out your auto parts store’s approach to securing funding, managing cash flow, and achieving breakeven.

This section typically includes detailed forecasts for the first 5 years of operation, highlighting expected revenue, operating costs and capital expenditures.

For your auto parts store business plan, provide a snapshot of your financial statement (profit and loss, balance sheet, cash flow statement), as well as your key assumptions (e.g. number of customers and prices, expenses, etc.).

Make sure to cover here _ Profit and Loss _ Cash Flow Statement _ Balance Sheet _ Use of Funds

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