pre owned car business plan

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.

500+ business plans and financial models

Car Dealership Business Plan: Complete Guide

January 11, 2023

Whether you’re looking to raise funding from private investors or to get a loan from a bank (like a SBA loan) for your car dealership, you will need to prepare a solid business plan.

In this article we go through, step-by-step, all the different sections you need in your car dealership business plan. Use this template to create a complete, clear and solid business plan that get you funded.

1. Executive Summary

The executive summary of a business plan gives a sneak peek of the information about your business plan to lenders and/or investors.

If the information you provide here is not concise, informative, and scannable, potential lenders and investors may lose interest.

Though the executive summary is the first and the most important section, it should normally be the last section you write because it will have the summary of different sections included in the entire business plan below.

Why do you need a business plan for your car dealership?

The purpose of a business plan is to secure funding through one of the following channels:

Obtain bank financing or secure a loan from other lenders (such as a SBA loan )
Obtain private investments from investment funds, angel investors, etc.
Obtain a public or a private grant

How to write an executive summary for your car dealership?

Provide a precise and high-level summary of every section that you have included in the business plan. The information and the data you include in this segment should grab the attention of potential investors and lenders immediately. Also make sure that the executive summary doesn’t exceed 2 pages.

The executive summary usually consists of the 5 main paragraphs:

Business overview : introduce your car dealership: what is your business model (franchise vs. independent business ; new vs. used car dealership), how many cars will you have in inventory? Are you partnering with any car manufacturer(s)? Where would your store be located? Etc.
Market overview : briefly analyze the car dealership industry in your area ( market size and growth), your competitors and target customers: average income of your target audience , demographic distribution, customer preferences etc.
Management & people : introduce the management team and their industry experience. Mention your business partner(s), if any. Also give here an overview of the different teams, roles and their reporting lines
Financial plan : how much profit and revenue do you expect in the next 5 years? When will you reach the break-even point and start making profits? Also include here a small chart with your key financials (revenue, net profit )
Funding ask : what loan/investment/grant are you seeking? How much do you need? How long will this last? How will you spend the money?

Car Dealership Financial Model

Download an expert-built 5-year Excel financial model for your business plan

2. Business Overview

In the business overview section of your car dealership business plan, you should expand on what your company sells, to whom, and how it is structured. A few examples of questions you must answer here are:

The history behind the project: why did you choose to open a car dealership today?
Your business model : Are you franchising or is this an independent store? Are you selling new or used vehicles?
Products & services : What vehicles / brands do you plan to sell? Are you planning to add any additional services (e.g. car repair & checkups, etc.)
What is the legal structure of your company? Who are the directors / shareholders?

a) History of the Project

Briefly explain how did you come up with the plan to start a car dealership business. What motivated you to get into this business venture?

Also try to demonstrate to investors your interest and passion for the car industry and car dealership in general.

For example, you might have worked in a car dealership and/or at a car manufacturer sales department in the past, and found immense growth potential for this type of business in your area.

b) Business Model

Explain in this section what business model you chose for your car dealership. Here are a few questions you must answer:

Will you start an independent dealership, franchise model, chain store, etc.?
Will you open a brand-specific dealership?
Would your car dealership deal in new cars, used cars, or both?
Do you plan to open an online dealership?
Would you offer service and repairs in your car dealership?

c) Products & Services

Now that we have briefly introduced what your business model is, you must explain in detail what exactly you intend to sell. There are 2 things here:

Products (cars): what vehicles and brands do you intend to sell? Why did you choose these vehicles / brands?
Services : if you offer additional services (e.g. car repairs, checkups), explain what they are

In addition to the products and services , you should also include a list of prices for each. Of course, this doesn’t need to be exact. Car prices fluctuate based on various factors. Yet, you must be able to provide a range of prices for each category (e.g. sedan, luxury cars, vans, etc.).

If you specialize in a specific brand, you can provide a list of prices per model in appendix as well.

The prices are important as they will allow investors to tie your product offering with your financial projections later on.

d) Legal Structure

Explain the legal structure of your nursing home in this section. Are you starting a corporation, a limited liability company, or a partnership? Who are the investors? How much equity do they actually own? Is there a board of directors? Do they have prior industry experience?

3. Car Dealership Market Overview

A complete understanding of the car dealership industry is important for the success of your business.

Therefore, you must cover here 3 important areas:

Status quo : how big is the car dealership industry in your area? How fast is the market growing? What are the trends fuelling this growth (or decline)?
Competition overview : how many car dealership competitors are there? How do they compare vs. your business? How can you differentiate yourself from them?
Customer analysis : what are your target customers? What are their customer preferences?

a) Status quo

When looking at the car dealership industry, try to start at the national level (US) and narrow it down to your service area (a city for example). You should answer 2 important questions here:

How big is the car dealership industry in your area?

How fast is the car dealership industry growing in your area, how big is the car dealership industry in the us.

The auto parts and car dealership industry in the US is huge: it was worth $1.18 trillion in 2021 as per the National Automobile Dealers Association . As per the same report, there were 16,676 light vehicles car dealerships in the US in 2021 which generate an average revenue of $71 million.

Sales are divided between new (52%) and used vehicles (37%) as well as services and parts (11%).

After the US, assess the size of the car wash industry in your city or area. Focus on the zone where you plan to offer your services.

Naturally, you might not be able to get the data for your specific city or region. Instead, you can estimate the size of your market, for more information on how to do it, read our article on how to estimate TAM, SAM and SOM for your startup .

Luckily, NADA publishes statistics per state so you can narrow it down easily. For your city instead, you will need to do work out some estimates. To give you an example, let’s assume you plan to operate in an area where there are already 30 car dealership businesses (in a 25 miles radius for example).

Assuming our business is based in Connecticut, we can use the state’s average annual turnover of $49,661 : we can reasonably assume that the car dealership industry is worth $1.5 million in your area . In other words, there are over 35,100 light vehicles (new and used) being sold in your area each year (assuming the average retail price of $43,000).

Now that we know your area’s market size, let’s look at growth instead.

Fortunately, you can use NADA’s number again as they publish annual reports. Just use your state’s market size growth, and explain the growth (or decline). This can be due to average car prices, or volume.

b) Competition overview

You should discuss both your direct and indirect competition in your business plan. Other car dealerships in the region will be your immediate competitors. Internet auctions, individual dealers, etc., will be your indirect competitors.

In this section, you should also discuss the essential components of the business models of your main competitors. Your research should be focused on their clientele, the kinds of cars they offer, and their strengths and weaknesses .

A thorough competitive analysis is crucial as it may allow you to discover and address a customer need or preference that none of your rivals is addressing today.

Here are some of the questions that you must answer in this section:

How many competitors are there in the area where you want to open your car dealership?
Are they franchises or independent stores?
Do they partner with specific car manufacturers?
What type of cars do they offer (luxury, economy, used, new, etc.)?
What is the average price range of the cars they sell?
How many employees do they have?
Do they offer services and repairs?
Do your competitors offer buyback on the cars sold by them previously to the client?
What type of offers and discounts do they offer to attract customers?
How many cars / vehicles do they sell on average per month?

c) Customer analysis

Now that we have a good idea of the car dealership industry in your area as well as competition, now is time to focus on your target audience: customers.

Knowing your customer is extremely important before you get into any business. This is all the more relevant for car dealership where customer preferences and tastes are very different.

For example, if you are planning to get into a luxury car dealership business, you should look into:

The estimated population of high-income people in your area
Types of luxury cars that are in demand (hatchback, sedan, SUV, etc.)
Shopping preference of your target customers (online or offline)
How frequently do they buy (or exchange) new cars?
Is their buying decision influenced by offers or discounts?
What features do your target customers want in their new luxury cars?
What type of additional services do they expect from their dealers?

4. Sales & Marketing Strategy

This is the section of your business plan where you outline your customer acquisition strategy. Try to answer the following questions:

What are the different marketing strategies you will use?
What are your Unique Selling Points (USPs)? In other words, how do you differentiate from your competitors?
How do you intend to track the success of your marketing strategy ?
What is your CAC or customer acquisition cost?
What is your marketing budget?

What marketing channels do car dealerships use?

A few marketing channels that car dealership businesses typically use are:

Signage, billboards
PPC ads, Facebook ads, etc.
Print media
Loyalty programs
Online local listing (Google Business)
Content marketing (share content like vehicle maintenance tips, safe driving tips, etc.) on platforms like blogs, social media, etc.
Word of mouth, recommendations

You must have a fair and nearly accurate estimate of your marketing budget. Therefore, make sure to budget for marketing accordingly in your financial projections.

What are your Unique Selling Propositions (USPs)?

In other words, how do you differentiate yourself vs. competitors? This is very important as you might need to win customers from competitors.

A few examples of USPs are:

Products: you may be the exclusive distributor or a car make in your area for example
Services : you may offer repairs and regular checkups for your customers
Location : you store is closer to a busy road and/or to where your customers live

Your USPs will depend on your business model, competitor analysis, and target audience. Whatever your USPs are, it should appeal to your potential customers and attract them.

5. Management & People

You must address 2 things here:

The management team and their experience/track record
The organizational structure: the different team members and who reports to whom

Small businesses often fail because of managerial weaknesses. Thus, having a strong management team is vital. Highlight the experience and education of senior managers that you intend to hire to oversee your car dealership.

Describe their duties, responsibilities, and roles. Also, highlight their previous experience and explain how they succeeded in their previous roles.

Organization Structure

Even if you haven’t already hired a VP of sales, sales managers, support staff and any other relevant staff members, you must provide a chart of the organizational structure outlining the different teams, roles and their reporting lines.

6. Financial Plan

The financial plan is perhaps, with the executive summary, the most important section of any business plan.

Indeed, a solid financial plan tells lenders that your business is viable and can repay the loan you need from them. If you’re looking to raise equity from private investors, a solid financial plan will prove them your car dealership is an attractive investment.

There should be 3 sections to your financial plan section:

Your historical financials (only if you already operate the business and have financial accounts to show)
The startup costs of your project (if you plan to start a new car dealership, or purchase new inventory, expand your store, etc.)
The 5-year financial projections

a) Historical Financials (if any)

In the scenario where you already have some historical financials (a few quarters or a few years), include them. A summary of your financial statements in the form of charts e.g. revenue, gross profit and net profit is enough, save the rest for the appendix.

If you don’t have any, don’t worry, most new businesses don’t have any historical financials and that’s ok. If so, jump to Startup Costs instead.

b) Startup Costs

Before we expand on 5-year financial projections in the following section, it’s always best practice to start with listing the startup costs of your project. For a car dealership, startup costs are all the expenses you incur before you open your shop and starting making sales. These expenses typically are:

The lease deposit for the commercial space you rent (if you don’t buy it)
The design and renovation of the existing facilities
The inventory costs (the initial stock of vehicles you must buy to sell them at opening)

For example, let’s assume you want to buy 30 light vehicles as a start for inventory, and you take on a loan where you need to put down 15% upfront. Now, assuming these vehicles each cost $50,000 on average, this means you must put down $300,000 yourself. This comes in addition with any other startup cost mentioned above (lease deposit, renovation costs, etc.).

c) 5-Year Financial Projections

In addition to startup costs, you will now need to build a solid 5-year financial model as part of your business plan for your car dealership .

Your financial projections should be built using a spreadsheet (e.g. Excel or Google Sheets) and presented in the form of tables and charts in your business plan.

As usual, keep it concise here and save details (for example detailed financial statements, financial metrics, key assumptions used for the projections) for the appendix instead.

Your financial projections should answer at least the following questions:

How much revenue do you expect to generate over the next 5 years?
When do you expect to break even?
How much cash will you burn until you get there?
What’s the impact of a change in pricing (say 20%) on your margins?
What is your average customer acquisition cost?

You should include here your 3 financial statements (income statement, balance sheet and cash flow statement). This means you must forecast:

The number of vehicles you sell over time ;
Your expected revenue ;
Operating costs to run the business ;
Any other cash flow items (e.g. capex, debt repayment, etc.).

When projecting your revenue, make sure to sensitize pricing and the number of customers as a small change in these assumptions will have a big impact on your revenues.

7. Funding Ask

This is the last section of the business plan of your car dealership. Now that we have explained what type of vehicles your company sells to whom and at what price, but also what’s your marketing strategy, where you go and how you get there, this section must answer the following questions:

How much funding do you need?
What financial instrument(s) do you need: is this equity or debt, or even a free-money public grant?
How long will this funding last?
Where else does the money come from? If you apply for a SBA loan for example, where does the other part of the investment come from (your own capital, private investors?)

If you raise debt:

What percentage of the total funding the loan represents?
What is the corresponding Debt Service Coverage Ratio ?

If you raise equity

What percentage ownership are you selling as part of this funding round?
What is the corresponding valuation of your business?

Use of Funds

Any business plan should include a clear use of funds section. This is where you explain how the money will be spent.

Will you spend most of the loan / investment to acquire the cost for the inventory (the vehicles)? Or will it cover mostly the cost of buying the land and building the store?

Those are very important questions you should be able to answer in the blink of an eye. Don’t worry, this should come straight from your financial projections. If you’ve built solid projections like in our car dealership financial model template , you won’t have any issues answering these questions.

For the use of funds, we recommend using a pie chart like the one we have in our financial model template where we outline the main expenses categories as shown below.

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Business Plan Template for Used Car Dealership

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Starting a used car dealership can be an exciting venture, but it's important to have a solid plan in place to ensure success. That's where ClickUp's Business Plan Template for Used Car Dealership comes in handy!

This comprehensive template is specifically designed for entrepreneurs looking to establish a used car dealership. It covers all the essential aspects of your business plan, including financial goals, market analysis, sales strategies, operational procedures, and growth projections. With this template, you can easily outline your vision, attract potential investors, secure funding, and make informed business decisions.

Don't miss out on this invaluable tool for setting up your used car dealership. Get started with ClickUp's Business Plan Template today and drive your business forward!

Business Plan Template for Used Car Dealership Benefits

A Business Plan Template for a Used Car Dealership can provide numerous benefits to entrepreneurs looking to establish their business, including:

Streamlining the process of creating a comprehensive business plan by providing a pre-designed template
Outlining financial goals, market analysis, and growth projections to attract potential investors and secure funding
Guiding business decisions by providing a roadmap for operational procedures and sales strategies
Ensuring a thorough understanding of the market and competition through market analysis
Evaluating the financial viability of the business and identifying potential risks and challenges
Increasing the chances of success by following a proven framework for business planning.

Main Elements of Used Car Dealership Business Plan Template

When starting a used car dealership, having a comprehensive business plan is crucial. ClickUp’s Business Plan Template for Used Car Dealership includes:

Custom Statuses: Track the progress of your business plan with statuses like Complete, In Progress, Needs Revision, and To Do, ensuring that every step is accounted for.
Custom Fields: Use custom fields like Reference, Approved, and Section to add specific details, track approvals, and organize your business plan sections efficiently.
Custom Views: Access different views such as Topics, Status, Timeline, Business Plan, and Getting Started Guide to gain different perspectives and effectively manage and present your business plan.
Collaboration and Task Management: Collaborate with team members, assign tasks, set due dates, and track progress to ensure that your business plan is executed effectively.
Document Management: Store and access important documents, financial data, market analysis, and growth projections within ClickUp's Docs feature, keeping everything organized in one place.

How To Use Business Plan Template for Used Car Dealership

If you're starting a used car dealership and need help creating a business plan, follow these steps to make the process easier using the Business Plan Template in ClickUp:

1. Executive Summary

Start by writing an executive summary that provides an overview of your used car dealership. Include information about your target market, competitive advantage, and financial projections. This section should be concise but compelling to grab the attention of potential investors or lenders.

Use Docs in ClickUp to draft your executive summary and make it visually appealing with custom formatting options.

2. Market Analysis

Conduct a thorough market analysis to understand the demand for used cars in your area. Research your target market, including demographics, purchasing preferences, and competitors. Identify opportunities and challenges that may impact your dealership's success.

Use the Table view in ClickUp to organize your market research data and create custom fields to track important metrics such as customer demographics and competitor analysis.

3. Business Structure and Operations

Outline the legal structure of your used car dealership, whether it's a sole proprietorship, partnership, or corporation. Describe your dealership's location, facilities, inventory management, and sales process. This section should provide a clear understanding of how your dealership operates.

Create tasks in ClickUp to outline your business structure and operations, assigning each task to the appropriate team member responsible for implementation.

4. Marketing and Sales Strategy

Develop a comprehensive marketing and sales strategy to attract customers to your dealership. Identify the most effective channels to reach your target market, such as online advertising, social media, or traditional marketing methods. Determine your pricing strategy, promotions, and customer retention tactics.

Use the Board view in ClickUp to visually map out your marketing and sales strategy, with each column representing a different marketing channel or tactic.

5. Financial Projections

Estimate your dealership's financial projections for the next three to five years. Include projected revenue, expenses, and cash flow. Consider factors such as vehicle acquisition costs, operating expenses, financing options, and potential profit margins.

Use Dashboards in ClickUp to create financial charts and graphs to visualize your projections. Track key financial metrics such as gross profit, net income, and return on investment.

6. Implementation Plan

Create a detailed implementation plan that outlines the steps you'll take to launch and grow your used car dealership. Include timelines, milestones, and responsibilities for each task. Break down your plan into manageable phases to ensure a smooth and successful execution.

Use the Gantt chart in ClickUp to create a visual timeline of your implementation plan. Assign tasks and set dependencies to track progress and ensure tasks are completed in the right order.

By following these steps and using the Business Plan Template in ClickUp, you'll have a comprehensive and well-structured plan to guide your used car dealership towards success.

Get Started with ClickUp’s Business Plan Template for Used Car Dealership

Entrepreneurs looking to establish a used car dealership can utilize the ClickUp Business Plan Template to streamline the process of creating a comprehensive business plan.

First, hit “Add Template” to sign up for ClickUp and add the template to your Workspace. Make sure you designate which Space or location in your Workspace you’d like this template applied.

Next, invite relevant members or guests to your Workspace to start collaborating.

Now you can take advantage of the full potential of this template to create a solid business plan:

Use the Topics View to organize different sections of your business plan, such as financial goals, market analysis, sales strategies, and operational procedures
The Status View will help you track the progress of each section, with statuses like Complete, In Progress, Needs Revision, and To Do
The Timeline View allows you to set deadlines and visualize the timeline for each section of your business plan
Utilize the Business Plan View to have a comprehensive overview of your entire plan, including all sections and their statuses
The Getting Started Guide View provides a step-by-step guide to help you navigate through the template and create your business plan
Utilize custom fields like Reference, Approved, and Section to add additional information and categorize different aspects of your business plan
Update statuses, custom fields, and progress as you work through each section to keep stakeholders informed and ensure a well-structured and effective business plan.
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How to start your used car business by utilizing APIs

March 9, 2024
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If you’re considering going into the used car industry, you’re entering a lucrative yet competitive market. Understanding the ins and outs of starting your own used car business is crucial for success.

In this guide, we’ll walk you through the steps to start a used car dealership business, from understanding the industry to leveraging API technology to maximize efficiency and profitability.

Used Car Dealership Business

Operating a used car dealership business involves buying, selling, and sometimes trading used vehicles. Simply put, it’s a place where you can purchase or sell a used car. It’s a dynamic industry that requires a deep understanding of automotive market trends, customer preferences, and legal regulations.

Steps on starting a used car business

So, how can you get started? Here are the basic steps to follow to set up your dealership:

Think and act like an entrepreneur

Starting a car dealership comes with the understanding that you’re about to become an entrepreneur and need to prepare your mindset for that. Not only that, you need to make some serious changes to your lifestyle as well. Check out how other entrepreneurs act and think, you can also take entrepreneurial classes. Taking this step before any other gives you a sense of detail and responsibility.

During this process, you should focus on getting experience with selling cars, business license requirements, and surety bonds, and you’ll need to learn the difference between selling new cars and used cars – as a salesperson, working side-by-side with dealers, whatever role you can get, try to get one. It’s best to start on the right foot.

Arrange Capital for Startup Costs

Every small business for new and used car sales needs funds, and before starting up a used car business, you need to find a way to get some means of funding. Apart from the car inventory that you definitely need to build, you also need to cover startup costs for:

Business registration
Car dealer license
Office supplies and furniture
Workers; salespeople, accountants, etcetera
Website and mobile applications with Vehicle APIs .
Marketing, and more.

You may also encounter lots of expenses during startup, so you need to consider costs.

Choose market location

The next step to take in owning a car dealership is choosing the right location for your used car business. There are several factors you need to consider before choosing the right location to set up your dealership, the most important of which is the current market trend.

What kind of cars are more profitable to invest in the long run? What is the demand for those cars now? Where do you see demand in the coming years? What age group are interested in these cars? What about income levels? Ask yourself questions like these to figure out what vehicle brands or types of cars your dealership will be centered on.

When you figure out what your niche should be, you can now start searching for a suitable location to launch your business. Make sure to be very careful when making this step as it is a really important part of your business’ journey.

Create a solid business plan and set financial goals

Creating a comprehensive business plan is essential for success in the used car dealership industry. This foundational document serves as a roadmap, guiding entrepreneurs through all they need to start, grow their businesses, and meet their business needs. To begin, entrepreneurs must clearly outline their:

Company details , including their vision, mission, and values. This clarity helps set the tone for the business and aligns all stakeholders towards common objectives.

T arget market area, this is crucial for identifying potential customers and tailoring marketing strategies accordingly. Whether focusing on a specific geographic region or niche demographic, understanding the target market’s needs and preferences is paramount for success.

Clear financial goals and strategies for growth. Entrepreneurs must define measurable objectives, such as revenue targets, profit margins, and market share aspirations.

By establishing these benchmarks, businesses can track their progress and adjust strategies as needed to stay on course. Additionally, outlining strategies for growth enables entrepreneurs to identify expansion opportunities, whether through diversifying inventory, expanding into new markets, or enhancing customer service offerings.

You can consider yourself halfway through the process as soon as you complete your business plan! Next, you should think about how you can make a profit with the business.

READ ALSO: 5 Types of Vehicle Data API Every Dealership Needs

Making Profits in the Car Dealership Business

Now that you have everything scripted and figured out, the next step is to decide how to get cars to fill up your inventory and how to make profits. This involves sourcing vehicles, implementing sales strategies, getting a website/mobile applications, and optimizing operations for profitability and growth. Let’s take a look at these points in more detail:

Locate car auctions exclusive for dealers

Now, the used car dealership business model involves buying used vehicles at a cheaper price and selling them with some profit. For startups, the easiest way to get great deals is by visiting dealer-only car auctions around you. These cars are usually sold at cheap rates and discounts to licensed dealers and you can take advantage of this.

Sure, these cars may come as damaged, but that’s where the next step comes in.

Have an experienced mechanic

Next, you can partner up with an experienced mechanic with good knowledge in inspecting and fixing the cars on your used-car lot. Some auction vehicles may have severe damages, so it is recommended to place the highest importance on this step.

With these vehicles properly fixed and in road-worthy condition. You can now begin sales.

Provide Warranties on Your Vehicles

I know what you may be thinking. Including warranties as extra-cost add-on products means that these vehicles will be more expensive than planned and car shoppers may not like that. Wrong!

Contrary to popular belief, around 66% of American drivers purchase an extended car warranty. Offering warranty coverage also gives consumers some protection, in terms of repairs.

Create a website/mobile application and utilize APIs

Creating a professional website or mobile application for your auto dealership is essential and must provide accurate information about your business. However, ensuring accuracy in providing vehicle data is paramount. By utilizing APIs, you can access real-time and reliable information about each vehicle in your inventory.

What are APIs? They are like bridges between you and an infinite source of vehicle information. Vehicle Databases offers several vehicle APIs including:

VIN decoding APIs
Vehicle history APIs
Market value API
Vehicle specifications API
Classic VIN decoding API
License plate API
Auction history API
Sales history API
Vehicle media API, and more

Imagine showing your customers everything they need to know about all vehicles in your inventory with the VIN and integrated APIs. This ensures transparency and builds customer trust, leading to increased sales and customer satisfaction.

Accuracy vehicle data also streamlines the buying process, reducing the likelihood of disputes or returns. Need more information on APIs and how you can get started? Get a free demo and 15 free credits now!

Place Adverts and Build Your Online Presence

At this point, you need to get the word out to get a successful business. You can start by using advertising channels to reach potential customers. Consider online platforms like Google Ads, Facebook Ads, and local classified websites. Additionally, explore traditional methods such as newspaper ads, radio spots, and flyers.

Leverage social media platforms (e.g., Instagram, Facebook, Twitter) to showcase your inventory, share success stories, and engage with your audience. Regularly post high-quality images and videos of the cars you have for sale.

Calculate a “Bottom Dollar” for Each Vehicle

Determine the lowest price at which you’re willing to sell cars in your inventory. Consider factors such as acquisition cost, refurbishment expenses, and desired profit margin. Be realistic about market conditions and adjust your pricing strategy accordingly.

Try to stay informed about market trends and competitor pricing. Analyze similar vehicles in your area to understand the prevailing rates. Remember that pricing too high can deter buyers, while pricing too low may impact profitability.

Prioritize Customer Service

Here are some tips:

Free Inspections and VIN Reports: Offer free vehicle inspections or provide Vehicle Identification Number (VIN) reports. These services build trust with potential buyers and demonstrate transparency.

Integrated Vehicle History APIs: Use APIs (Application Programming Interfaces) to access vehicle history data. Share relevant information with customers, such as accident history, maintenance records, and ownership details.

Hire Assistants and Salespeople: Invest in a skilled sales team. Friendly, knowledgeable staff can guide customers through the buying process, answer questions, and address concerns. Excellent customer service leads to repeat business and positive referrals.

Keep the car lot and showroom neat and attractive

The last tip for the day is to keep your used car lot and showroom organized and visually appealing. Arrange vehicles in an orderly manner, ensuring they are clean and well-presented. Regularly wash and detail the cars to enhance their visual appeal.

If you can keep these in mind, you can be sure to have a good start and operate an independent car dealership successfully.

Statistics About Used Car Dealerships

Total used-vehicle sales in December 2023 were estimated to be around 2.6 million units, up 2.1% from December 2022.
Retail used sales accounted for approximately 1.4 million units.
The average car dealership receives 166 qualified sales leads each month.
Approximately 13.3% of sales prospects do not make it into the car dealership’s Customer Relationship Management (CRM) system.
The average close rate for car dealerships is 12.5%.
Car dealerships miss approximately 8.5% of calls from potential sales prospects.
In 2023, franchised light-vehicle dealers in the United States sold 13.7 million light-duty vehicles, contributing to a total sales value of over $1.2 trillion.
The U.S. used car dealer market had a size of $138.1 billion in 2021. Despite initial pandemic-related challenges, used car sales rebounded and exceeded pre-pandemic levels.
The overall used-vehicle market likely finished 2023 near 35.9 million units, slightly below the previous year’s figure. Retail used sales likely closed out 2023 at 19.0 million units.
Cox Automotive forecasts used-vehicle sales volume to reach 36.2 million units in 2024, with used retail sales estimated at 19.2 million units. The market is expected to regain some normalcy, although supply constraints may persist due to lower new-vehicle sales in previous years.

Frequently Asked Questions

Used car businesses can be highly profitable for dealers, with successful operations generating significant revenue. However, profitability depends on various factors such as market conditions, inventory management, pricing strategies, and customer service quality. You also need to be able to provide accurate vehicle information to consumers at all times. Visit Vehicle Databases to get access to accurate APIs for your business needs.

To succeed in the used car business, it’s essential to prioritize customer satisfaction, maintain transparency, and offer quality vehicles at competitive prices. Additionally, staying informed about market trends, investing in marketing efforts, and leveraging technology like APIs can contribute to success.

Yes, buying and selling used cars can be a profitable venture. By sourcing quality inventory, accurately pricing vehicles, and providing value-added services such as warranties and inspections, dealers can generate profits from each sale.

Owning a used car business has the potential to be profitable, but success depends on various factors including market demand, competition, location, and operational efficiency. By implementing effective strategies, offering excellent customer service, and staying adaptable to market changes, dealerships can achieve profitability and long-term success in the industry.

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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.

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.

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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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Starting a Small Used Car Business

Small Business
Types of Businesses to Start
Starting a Car Business
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How to Open an Import Car Dealership

How to wholesale cars, how to sell off the remainder of a lease.

How to Operate a Used Car Business
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A used car business can acquire vehicle inventory from many sources.

Owning even a small used car dealership entails much more than just putting some cars on a lot and waiting for customers to come along. It requires knowledge of the cars, expertise in their features and differences, knowing competitive prices of similar models and how to arrange vehicle financing. Before you even put the first "For Sale" sign on a windshield, you'll need to select a location, understand local licensing requirements and have a plan for acquiring your first vehicles.

Develop a Business Plan

Before beginning your venture, it's important to develop a business plan. A business plan should include an analysis of your industry, your local market as well as projected financial returns, including when you expect your business to break even.

A business plan serves multiple purposes: getting your business ideas out on paper can help you to identify challenges and weaknesses in your plan. In addition, by running financial projections, you can determine whether your revenue model is a feasible one.

You should also be aware that investors and lenders will want to see a business plan before deciding to work with you. A quality business plan can help you secure the financing that you need.

Apply for Financing

Unless you already have the money necessary to get your business started, you'll have to seek financing. There are several options for financing, including loans and seeking investors.

Before pursuing financing, it's important to make sure that your own finances are in good order. Some lenders and investors will want to check your personal credit, so check your credit reports and correct any errors. If your credit scores on the low side, take necessary steps to pay off your debt and improve your score before seeking business funding.

Choosing a Location

Select a visible location with easy access from main roads. Ensure that your site has plenty of parking for your vehicle inventory as well as your customers’ vehicles. Before you commit to a lease, or make improvements to the property, consult with your local zoning office to ensure that you can legally establish your business at that location.

Dealer Licensing Requirements

Contact your state Motor Vehicle Administration to obtain requirements for a vehicle dealer’s license. Although state regulations vary, you must satisfy criteria relative to building size and location, signage and operating hours. You’ll also need to post a state-determined surety bond. Finally, you’ll need to strictly adhere to state Lemon Laws and deceptive advertising regulations.

In Texas, for example, vehicle dealer licensing falls under the purview of the Texas Department of Transportation. You’ll need a general distinguishing number, which identifies your dealership in the eyes of the state. You must meet several stringent requirements to receive this number. Other licenses and permits may be required as well.

Sales Tax Administration

Sales tax must be collected on all vehicles you sell, and you must remit that tax according to your state-determined payment schedule. Contact your state's Comptroller of Public Accounts to obtain a sales tax permit, and to determine your state’s procedure for the collection and payment of vehicle sales tax.

Selecting and Hiring Staff

Hire outgoing people experienced in handling many types of customers. Although automobile sales experience is desirable, salespeople who have sold other big-ticket items, such as boats or expensive jewelry, may also be prospects. Each salesperson must contact your state’s Motor Vehicle Administration for licensing requirements. Finally, hire a maintenance worker to prepare the vehicles for sale.

Acquiring Vehicles to Sell

Ask family, friends and business associates to contact you regarding vehicles they want to sell. Call vehicle owners who have “For Sale” classified ads in local newspapers, vehicle trader publications and online trader websites. Travel to local or regional vehicle auctions to purchase vehicles in good or better condition. Finally, hang signage that conforms to dealership requirements and announces that you’re ready to accept vehicles for sale.

Create a Marketing Plan

How do you plan to attract new customers for your automobile business? You may wish to hire a marketing professional to work for your company or contract with an outside firm. Drafting a brand logo is an essential first step in establishing your business.

Other options for marketing include developing a website and a presence on social media platforms. From there, you can purchase online and off-line advertising that directs customers to your website as well as your physical location. Direct mail marketing is also an option, as is advertising in local newspapers and magazines.

Grand Opening Celebration

Schedule a grand opening event to showcase your spiffed-up cars and trucks. Offer sale pricing that follows dealer guidelines and offers customers an exceptional value. Serve refreshments and feature live music to attract curious visitors who may stop and browse. Advertise your grand opening celebration in the automotive section of local newspapers, and place flyers at local automotive parts and service facilities.

Bureau of Labor Statistics: Motor Vehicle and Parts Dealers
The Unofficial DMV Guide: Dealers & Auto Industry: Choose Your State
The Unofficial DMV Guide: Dealer Licensing: Texas

Based in North Carolina, Felicia Greene has written professionally since 1986. Greene edited sailing-related newsletters and designed marketing programs for the New Bern, N.C. "Sun Journal" and New Bern Habitat ReStore. She earned a Bachelor of Science in business administration from the University of Baltimore.

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Used Car Dealership Business Plan Template [Updated 2024]

Used Car Dealership Business Plan Template

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

The following Used Car Dealership business plan template gives you the key elements to include in a winning Used Car Dealership business plan.

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

Used Car Dealership Business Plan Sample

I. executive summary, business overview.

[Company Name], located at [insert location here] is a used car dealership that sells, and services used vehicles to customers in the surrounding community. Our dealership will offer vehicles at a range of price points , for customers across the spectrum of creditworthiness.

Products and Services

[Company Name] will maintain an inventory of used vehicles, and operate a service department for trade-ins.

In addition, [Company name] will also offer financing and insurance options for customers with all credit scores. Sub-prime customers will find financing options at [Company name] that they will not find at other area dealerships.

Customer Focus

[Company Name] will primarily serve the residents within a 30 mile radius of our location. The demographics of these customers are as follows:

27,827 residents
Average income of $45,700
38.9% with higher education
29.6% in Mgt./Professional occupations
Median age: 35 years

This bodes well for [Company Name], as the prime demographic for used car dealerships are consumers with subprime credit ratings. Individuals of all ages will be sure to patronize [Company Name] for their extensive vehicle and financing options.

Management Team

[Company Name]is led by [Founder’s Name] who has been in sales for 20 years. While [Founder] has never run a dealership himself, he has worked in the car dealership industry since age 30. As such [Founder] has an in-depth knowledge of the dealerships industry, including the operations side (e.g., running day-to-day operations) and the business management side (e.g., staffing, marketing, etc.).

Success Factors

[Company Name] is uniquely qualified to succeed due to the following reasons:

The Company will fill a specific market niche in the growing community we are entering. In addition, we have surveyed the local population and received extremely positive feedback saying that they explicitly want to frequent our business when it is launched.
Our location is in a high-volume area with easy access from multiple residential and commercial district zones.
The management team has a track record of success in the car dealership industry.
Used car dealerships are a proven business and have succeeded in communities throughout the United States.
Local competitors leave a large gap in the market—there are car dealers offering new cars and maintenance services, and a dealership that exclusively sells used vehicles, but nothing that cater to subprime customers.

Financial Highlights

[Company Name] is currently seeking $500,000 to launch. Specifically, these funds will be used as follows:

Lot design/build: $100,000
Inventory: $300,000
Working capital: $100,000 to pay for Marketing, salaries, and lease costs until [Company Name] reaches break-even

Topline projections over the next five years are as follows:

II. Company Overview

Who is [company name].

[Company Name], located at [insert location here] is a a used car dealership that sells, and services used vehicles to customers in the surrounding community. Our dealership will offer vehicles at a range of price points, for customers across the spectrum of creditworthiness.

[Company Name] was founded by [Founder’s Name]. While [Founder’s Name] has been in the auto sales business for some time, it was in [month, year] that he decided to launch [Company Name]. Specifically, during this time, [Founder] took a trip to Fort Lauderdale, FL. During his trip, [Founder’s Name] visited a used car dealership that enjoyed tremendous success. After discussing the business at length with the owner of the dealership, [Founder’s Name] clearly understood that a similar business would enjoy significant success in his hometown.

Specifically, the customer demographics and competitive situations in the Fort Lauderdale location and in his hometown were so similar that he knew it would work. After surveying the local population, [Founder’s name] went ahead and founded [company name].

[Company Name]’s History

Upon returning from Fort Lauderdale, surveying the local customer base, and finding a potential lot location, [Founder’s Name] incorporated [Company Name] as an S-Corporation on [date of incorporation].

The business is currently being run out of [Founder’s Name] private offices, but once the build-out on [Company Name]’s commercial location is finalized, all operations will be run from there.

Since incorporation, the Company has achieved the following milestones:

Found commercial space and signed Letter of Intent to purchase it
Developed the company’s name, logo and website located at [website]
Hired an architect to design the showroom
Determined equipment and inventory requirements
Begun recruiting key employees with previous auto sales experience

[Company Name]’s Products & Services

Below are [Company Name]’s products and services:

Used vehicles
Parts and repair services
Finance and insurance

Sales professionals will be available to determine the customer’s needs, budget, and preferences, and recommend options.

[Company Name] will also offer financing and insurance options for customers with a range of credit scores.

[Company Name] will feature a range of used vehicles. It will continue to update its inventory in order to provide fresh options to its customers.

Furthermore, the waiting area will feature a relaxing, welcoming atmosphere, and a coffee bar will be available for waiting customers.

Showroom Design

[Company Name] will develop a 2,000 square foot facility whose key elements will include the following:

Office area
Reception Desk
A waiting area

[Company Name] plans to be open 6 days a week, from 7AM to 9PM. As demand dictates, we may extend or reduce our hours.

III. Industry Analysis

[Company Name] competes against other new and used car dealerships, as well as online-only car dealers and private consumer sales.

According to a report by National Independent Automobile Dealers Association, the used car dealership industry is a fragmented one, with nonemploying dealerships estimated to represent 81.4% of total establishments. The market is estimated to grow to over $150.6 billion in five years. Since there are no truly dominant competitors, barriers to entry are not as high as many other industries, and a start-up can expect to have success in this growing market, [Company Name] is well-positioned for success. There is plenty of room in the industry particularly for conveniently located dealerships that cater to specific demographic trends and demands. In this industry, size does not necessarily mean an advantage, which bodes well for [Company Name].

Market Trends

The market in which [Company Name] will compete is experiencing a number of different trends.

Market-level trends:

Flat growth. This market is expected to remain consistent, with slow growth of 0.6% annually.
Success drivers. Customer satisfaction is what ultimately makes one dealership triumph while another fails. The experience a dealership’s customer has will ultimately determine whether or not they return and whether or not they refer others to the dealer.

Firm-level trends:

Inventory and Price. Most used car dealerships have inventories dominated by vehicles that are at least six years old and have more than 60,000 miles. The variety of vehicles in stock is an important factor in a consumer’s decision to buy, as are financing options.
Customer service. Happy customers generally tell three friends about their positive experience, while unhappy customers tell five times as many people.

Customer-level trends:

Availability. Because of the limited used car inventory and slowed vehicle production, consumers are less set on whether they want a used or new vehicle. Instead, they are more likely to make a purchase decision based on available stock and prices.
Purchasing preferences. Customers are increasingly shopping online, including shopping for vehicles. While not all customers complete an automobile purchase online, many do use the internet to research and compare before making the final purchase decision.

IV. Customer Analysis

Demographic profile of target market.

[Company Name] will serve the residents of [company location] and the immediately surrounding areas as well as those who work in [company location].

The area we serve is populated mostly by lower middle class Millennials; as a result, they are more likely to shop for high quality used vehicles. Further, many are looking to transition to hybrid or electric vehicles, and used EVs are a more affordable option.

The precise demographics of the town in which our retail location resides is as follows:

Customer Segmentation

Subprime and deep subprime customers: Subprime customers, or customers that have a VantageScore between 501 and 600, are expected to account for 21.7% of industry revenue. In contrast, deep subprime customers possess a score of less than 500 and are expected to account for 3.4% of revenue. [Company name]’s inventory will include a variety of financing options to meet the needs of this demographic.
Prime and near prime customers: Prime and near prime customers are expected to represent 41.4% and 21.9% of industry revenue, respectively. Prime credit ratings correspond to a VantageScore between 661 and 780, while near prime customers’ credit ratings correspond to a VantageScore between 601 and 660. Customers with intermediate credit scores may choose to purchase vehicles at a used car dealer to protect their credit scores for more important purchases.
Super prime customers: Super prime customers have credit scores of 781 or higher. With such a high credit rating, these customers qualify for the best interest rates. Super prime customers may choose to purchase vehicles from a used car dealer, whether financed or cash, to protect their favorable credit.

V.Competitive Analysis

Direct & indirect competitors.

The following dealerships are located within a 20 mile radius of [Company Name], thus providing either direct or indirect competition for customers:

Premiere Auto

Incorporated in 1997, Premiere Auto is a privately held preowned dealership. Premiere Auto has consistently been ranked in the Top 20 independent preowned dealerships in the United States and has sold over 50,000 vehicles since it opened. Premiere Auto sources most of its vehicles from private individuals. Most of these vehicles have Carfax available, and come with a 2 year/100,000-mile warranty. Premiere Auto operates a service and parts center and offers financing. Premiere Auto currently has 152 vehicles available on its website; priced from $4,999 to $58,999.

We expect that Premiere Auto will continue to thrive. But since is located in the next city, we expect more and more customers will frequent [Company Name] based on proximity and competitive prices we offer.

Randy’s Auto Sales

Established in 1993, Randy’s Auto Sales, Inc is a privately held preowned dealership. Randy’s Auto Sales has a wide range of vehicle makes and models and offers financing. The dealership offers a range of Warranty coverages provided by GWC Warranty and operates two lots. Randy’s Auto Sales has 71 vehicles available on the two lots; priced from $3,995 to $15,995.

[Company Name] has several advantages over Randy’s Auto Sales, in that offers a larger inventory, and has more financing options.

Boardwalk Auto Sales

Established in 2010, Boardwalk Auto Sales, Inc. is a privately held single location used car dealership. Boardwalk Auto Sales primarily offers In-House Lease Financing on its used vehicles. Boardwalk Auto Sales includes a warranty on every vehicle offered and can arrange traditional financing. Further, the dealership does not preform Credit Check and can offer flexible terms and payment options. Boardwalk Auto Sales operates an Inspection Station & full service facility able to handle anything from routine tire swaps, brake work & oil changes to engine swaps and transmission repairs. Boardwalk Auto Sales has 56 vehicles for sale online; priced from $8,990 to $12,990.

Boardwalk Auto Sales offers some financing options which are unique to the area, and thus we expect it will continue to draw a large clientele. However, because many of its services are geared to subprime clientele, we expect to draw prime buyers who seek better financing terms.

Competitive Advantage

[Company Name] enjoys several advantages over its competitors. These advantages include:

Location: [Company Name]’s location is near the center of town, giving us access to commuters going to and leaving the train station, local office workers, and passersby shopping in the city.
Strong inventory: The inventory offered by [Company Name] is large, and [Company Name] offers these vehicles at affordable prices.
Management: Our management team has years of business and marketing experience that allows us to market to and serve customers in a much more sophisticated manner than our competitors.
Relationships: Having lived in the community for 25 years, [Founder’s Name] knows all of the local leaders, newspapers and other influencers. As such, it will be relatively easy for [Company Name] to build brand awareness and an initial customer base.

VI.Marketing Plan

[Company name] seeks to position itself as a respectable competitor in the used car industry. Customers can expect to receive personal attention and choose from a variety of used cars offered at reasonable prices.

The [Company Name] Brand

The [Company Name] brand will focus on the Company’s unique value proposition:

Convenient location
Highly trained specialists
Significant personal attention
Moderate price point
Comfortable, customer-focused environment

Promotions Strategy

[Company Name] expects its target market to be individuals working and/or living within a 10-mile radius of its location. [The Company’s] marketing strategy to reach these individuals includes:

Local Publications

[Company name] will announce its opening several weeks in advance through publicity pieces in multiple local newspapers and publications. Regular advertisements will run to maintain exposure to relevant markets. Community newspapers, school publications, youth sports programs, and similar channels will be a major promotion effort.

Major Publications

We will make careful use of advertising in selected larger publications. [Publication or newspaper name] has a circulation of xyz and we can expect to reach a wider geographic region of customers on a limited basis. Advertisements with major publications will be used selectively, based on cost effectiveness. These ads will include discount coupons so that response to the ads can be tracked.

Community Events/Organizations

[Company name] will promote itself by distributing marketing materials and participating in local community events, such as school fairs, local festivals, or homeowner associations.

Commute Advertising

We will drive attention toward [Company name] by leasing a billboard alongside [route or highway]. Advertising on heavily traveled commute routes is an opportunity to alert large numbers of working individuals with disposable income of our opening.

Customer Loyalty Programs

[Company name] will create a winning customer loyalty program to keep its best clients coming back again and again. In addition, we will send periodic, regular emails and text messages to customers. These communications will (a) ensure that customers are satisfied with their purchases, and (b) remind customers after a certain period of time has passed that they might want to shop for another car. Long-term customers will have the opportunity to participate in the loyalty program, and referrals will be rewarded as well.

Direct Mail

[Company Name] will blanket neighborhoods surrounding its locations with direct mail pieces. These pieces will provide general information on [Company Name], offer discounts and/or provide other inducements for people to visit the center.

Ongoing Customer Communications

[Company Name] will maintain a website and publish a monthly email newsletter to tell customers about new events, inventories and more.

Pre-Opening Events

Before opening the dealership, [Company Name] will organize pre-opening events designed for prospective customers, local merchants and press contacts. These events will create buzz and awareness for [Company Name] in the area.

Pricing Strategy

[Company Name]’s pricing will be competitive so customers feel they receive great value when shopping for a new car. The customer can expect to receive personalized attention and honest dealing when shopping for a used car.

VII.Operations Plan

Functional roles.

[Company name] will carry out its day-to-day operations on a walk-in basis.

In order to execute on [Company Name]’s business model, the Company needs to perform several functions. The majority of employees will have a primary function as auto sales professionals. [Company name] anticipates using the services of X employees, divided into the following roles.

Service Functions

Financing and insurance processing
Auto maintenance and service

Administrative Functions

General & administrative functions including legal, marketing, bookkeeping, etc.
Sourcing and storing products and inventory
Hiring and training staff
Appointment making
Customer service/cash register functions

Miscellaneous

Maintenance personnel

The following are a series of steps that lead to our vision of long-term success. [Company Name] expects to achieve the following milestones in the following [xyz] months:

VIII. Management Team

Management team members.

[Company Name]is led by [Founder’s Name] who has been in auto sales for 20 years.

While [Founder] has never run a dealership himself, he has worked in the auto industry since age 30. He began his career after he graduated from [University Name] in [19xx].

[Other person’s name] will serve as the customer service manager. [He/she] has extensive experience in the auto industry.

[Founder] will serve as the office manager. In order to launch our dealership, we need to hire the following personnel:

Sales staff (3 to start)
Finance and insurance processors (2 to start)
Service personnel (2 to start)
Porter (1 to start)
Appraiser (1 to start)
Assistants (1 to start)
Receptionist (1 to start)

As dictated by demand and operational maturity, [Founder] will consider hiring the following personnel:

Sales Manager [Number]
Assistant Office Manager

IX. Financial Plan

Revenue and cost drivers.

[Company Name]’s revenues will come primarily from the sale of used vehicles and secondarily from the sales of parts/accessories and auto services.

The major cost drivers for the company’s operation will consist of:

Inventory and parts
Salaries and commissions

Moreover, ongoing marketing expenditures and cost of goods sold expenses are also notable cost drivers for [Company Name].

Capital Requirements and Use of Funds

[Company Name] is seeking $500,000 to launch. Specifically, these funds will be used as follows:

Key Assumptions & Forecasts

5 Year Annual Income Statement

5 Year Annual Balance Sheet

5 Year Annual Cash Flow Statement

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Small Business Trends

How to start a used car dealership.

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Used car dealerships brought in more than $118 billion in revenue this year. This business may be perfect for those who are interested in selling cars without having to franchise through a major automotive manufacturer.

Many used car lots are independently owned and include cars of various makes, models, conditions and prices. So there’s plenty of room for you to make the business your own. Here’s how to start a used car dealership.

If you’re interested in getting started in this industry, here are some of the basics you need to know.

Perform Market Research

Before you can get started as a used car dealer, you need to know what your market looks like. You should learn about the consumers in your area first. What types of cars are they looking for? Where does price come in? What attracts them to a particular dealer?

Then you should get to know the competition. Is there already an influx of one particular type of car dealer in your area? Is there an opportunity for you to stand out in another way or should you focus on a market that is less saturated?

Go beyond just identifying customer preferences and competition. Investigate the economic trends in the automotive industry, the impact of technology on car buying habits, and the potential for electric or hybrid vehicles in your inventory.

https://www.youtube.com/watch?v=mUlYuYooV5Y

Choose a Location

During your research, you need to zero in on a location for your used car lot. Ideally, it should be somewhere easy to access with enough vehicle traffic to attract customers. Start by getting a general idea for the area you want, then focus down further to find an open lot with enough space for all the cars you want to eventually include in your inventory.

Key Location Considerations:

Accessibility: Ensure the location is easy for customers to find and access, ideally near major roads or intersections.
Vehicle Traffic: Choose a spot with high vehicular traffic to naturally attract potential buyers.
Lot Size: Ensure the space is sufficient to accommodate both your initial and potential future inventory.
Visibility: Opt for a location that is easily visible from the main road, enhancing spontaneous visits.
Safety and Security: Evaluate the safety of the area, considering factors like lighting and the general neighborhood reputation.
Nearby Businesses: Consider proximity to complementary businesses, such as auto repair shops or car washes, which can bring additional footfall.
Cost Effectiveness: Ensure the rent or purchase price aligns with your budget while also factoring in future growth prospects.
Potential for Future Expansion at the Location: Look into zoning laws that could affect your business, and consider the convenience for customers in terms of public transportation access.

Identify a Niche

Even though many used car dealers do not specifically affiliate with a single auto manufacturer, you still might find it useful to choose a niche for your business.

You could sell just one brand of vehicle or even just focus on a specific price point. This will help you more effectively market to your target audience. As you grow, you could always branch out into new brands or price points as well.

Consider specializing in vehicles that are in high demand but underrepresented in your market, such as fuel-efficient cars, luxury used cars, or vehicles suitable for ride-sharing services. Tailoring your inventory to a specific niche can set your dealership apart.

Learn About Regulations

Used car dealerships do need to comply with the Federal Trade Commission’s used car rule , which states that dealers must include a buyer’s guide for each vehicle and allow buyers to inspect the vehicle before purchasing, among other requirements.

Some states and local communities also have rules that apply to car dealerships. So make sure you do your homework about compliance standards before starting up.

Stay informed about changes in automotive regulations, especially those related to emissions, safety standards, and consumer protection laws. These can impact the types of vehicles you can sell and how you conduct business.

Register Your Business

In order to officially get started, you’ll need a business license, dealer’s license and you’ll probably need to register with the DMV in your state.

Specific processes vary by state and local community. So check with your state and local governments or converse with someone from your local chamber of commerce to make sure you meet the necessary requirements in your area.

In addition to obtaining the necessary licenses, consider the legal implications of your business structure on liability, taxes, and investment opportunities. A consultation with a legal expert in the automotive sector can provide valuable guidance.

Build an Inventory

When starting a used car dealership, you probably aren’t franchising with a manufacturer who provides you with vehicles. So you need to source them yourself.

Register with auctions in your area so you can find low cost vehicles to sell, or source cars from social media. Most independent dealers will need to start small and then build inventory as you earn money over time.

Jamie Jones, who has managed car dealerships across the U.S. for more than 25 years, said in a video “As your cash flow builds, you’re workflow has got to build. That’s just how it works. You kind of have to crawl a little bit. Then you get a little bit faster pace. Then you start to walk. And then you start to run.”

Explore partnerships with local businesses or government agencies to acquire fleet vehicles that are being retired. These vehicles often have detailed maintenance records, which can be a selling point.

Develop Buying Policies

Moving forward, you’ll need to come up with a plan for keeping your lot stocked with vehicles without draining all of your resources. Whether you’re in charge of stocking your inventory or relying on a team member or partner to do so, it’s important to have a limit or number in mind.

Dale Pollak stated in his book, Like I See It: Obstacles and Opportunities Shaping the Future of Retail Automotive, “I propose that every dealer institute a hard cap or limit on their used vehicle inventory investment. Managers have X dollars to spend and manage in a given year, and that’s it.”

Key Buying Policies to Consider:

Inventory Limit: Establish a maximum number of cars to have on the lot at any given time.
Budget Allocation: Determine a fixed budget for acquiring new vehicles each month or year.
Vehicle Source Preferences: Identify preferred channels for acquiring cars, such as auctions or direct purchases.
Vehicle Type Focus: Decide on the types or brands of cars that align best with your niche and customer demand.
Turnover Time: Set a target timeframe for how long each vehicle should ideally stay on the lot before being sold.
Periodic Review: Regularly review and adjust policies based on sales performance and market conditions.

Implement a rigorous vehicle inspection process to ensure the quality of your inventory. Consider factors like vehicle history, mileage, and potential for future maintenance when making purchasing decisions.

Develop an Online Presence

Today, car shoppers do a ton of research online before even heading to a dealership. That means there needs to be enough information about your business and the products you offer on those relevant online platforms.

According to Garrett Smith of RepCheckup, it’s important to have accounts and accurate information on online business directories, social media sites and review platforms. You might also list cars on your website and other marketplaces that people can easily find online in order to bring more traffic to your dealership.

Utilize digital tools like virtual car tours, online financing calculators, and chatbots to enhance the customer experience. Leverage data analytics to understand customer behavior and preferences on your website and adapt your online strategy accordingly.

Consider a Service Department

Used cars tend to need more repairs and service than newer models. So you have the opportunity to build in a significant extra income by offering a service center right at your dealership. This might be something you choose to open after building your dealership income for awhile.

In order to do this, you’ll need a garage, some equipment and skilled mechanics. Then you might offer specials or incentives to keep your car buyers coming to your service centers over other auto repair shops.

Develop service packages or loyalty programs to encourage customers to return for maintenance and repairs. Consider offering specialized services, such as customization or upgrades, that align with your niche.

How to Start a Used Car Dealership Summary

Things to work on once your used car dealership is up and running.

Once your used car dealership is operational, it’s crucial to focus on strategies that not only sustain the business but also foster growth and enhance your market presence. Beyond the initial setup and launch, certain key areas require ongoing attention and development.

These aspects are essential to adapt to the dynamic automotive market, meet customer expectations, and stay competitive. Here are some critical focus areas to consider for the continual success and growth of your used car dealership:

Financing Options for Customers

Explore partnerships with financial institutions to offer attractive financing options to your customers. This can increase sales by making vehicles more affordable for a broader range of customers.

Sustainability Practices

Consider implementing environmentally friendly practices, such as recycling parts or offering electric vehicle charging stations. This can enhance your brand image and appeal to environmentally conscious consumers.

Community Engagement

Get involved in local community events and sponsorships. This not only raises your dealership’s profile but also builds goodwill in the community.

Customer Relationship Management

Invest in a robust CRM system to manage customer interactions, follow up on leads, and maintain customer relationships. Personalized communication can lead to repeat business and referrals.

Staff Training and Development

Regularly train your staff in customer service, sales techniques, and the latest automotive trends. Knowledgeable and courteous staff can significantly improve the customer experience.

Market Analysis and Adaptation

Continuously analyze market trends and adapt your business strategy accordingly. Be prepared to adjust your inventory and services to meet changing customer demands and market conditions.

Monitoring Industry Trends

Keep an eye on industry trends, such as the shift towards electric vehicles, changes in consumer buying behaviors, and advancements in automotive technology, to stay ahead in the market.

By actively working on these areas, your dealership can not only maintain its relevance in the market but also create opportunities for expansion and improved customer relations. These efforts will contribute significantly to the long-term success and reputation of your used car business.

Image: Depositphotos.com

You made a good point about how it is vital for a new car dealership business to have an online presence. I think it would also be great to have a good online connection between one’s own agents in order to have a more unified operation of the business. If I would start my own business like that, I will definitely get an IT service.

It was interesting you explained that opening up a service department can help dealerships build a significant extra income. As far as I know, in order to run a service center, you would need a lot of supplies such as tags for license plates. A dealership would probably need to find a reliable supplier that they can purchase whatever they need from.

very informative & useful article about starting a used car dealership. I think this will help a lot to the dealer

Informative & Useful, Information about starting a used car dealership. I think this will help a lot to the dealer

With havin so much content ddo you ever run into any problems oof plagorism or copyright infringement?

My blog has a loot of completely unique content I’ve either authored myself or outsourced but it seems a lot of it is popping it up alll over tthe web withouyt my agreement. Do you know any ways to help reduce contentt froom being ripped off? I’d really appreciate it.

I need a license for selling cars on installment

I am very happy to see this post because it really a nice post. Thanks

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Business Plans Handbook
Business Plans - Volume 06
Used Car Business Business Plan Business Plan

Used Car Business BUSINESS PLAN

BUDGET CARS

145 Water Street Alpena, MI 49707

This business plan addresses all relevant concerns by presenting a comprehensive account of a month-by-month marketing strategy coupled with an extensive report on all aspects of the needs of a successful used car center. The care and detail of the financial figures assures a well-thought and carefully considered proposition. Note the effort to make the lender comfortable and familiar with the staff.

PRODUCTS AND SERVICES

Industry description, market definition, marketing plan, company structure, financial plan, resumes and personality profiles.

Mission —The mission of Budget Cars will be to buy and sell a desirable mix of quality used cars, trucks, and vans, and to create a friendly atmosphere where Budget Cars will be known for being your family used car center.
Legal Status/Location —The legal status of Budget Cars is a subchapter "S" corporation. The location is in Alpena, Michigan.
Products and Services —The products that Budget Cars will offer are quality used cars, trucks, and vans at below market value. The services that will be offered are in-house financing provided by area banks with approved credit and a full automotive detail center that will recondition all units for sale.
Market and Sales Strategy Due to several different factors (season changes, market changes, opening date, etc.), our advertising strategies are going to vary accordingly. We are going to be consistent with our advertising in the "Out and About" section that runs every other week in the Alpena Journal and at least one ad once a month in the Daily Herald. January 15, 1997—Our goal is to open the doors and start our advertising in the "Out and About" section of the Alpena Journal , $40.00 each run, reaching 5,000 homes, and an ad in the Daily Herald . February—First week, buy the front page of the Daily Herald, $525.00, reaching 17,000 homes and continue with every other week in the Alpena Journal . Also concentrate on 3 spots a week in the classifieds, about $27.00 per week. March—This month we'll continue our "Out and About" section, 3 spots a week in the classifieds, and at least one ad in the Daily Herald to keep in contact with the out county. April—"Grand Opening" will be held this month. With the snow gone and everyone ready for a cookout, we'll have our "Family Festive." Included in this will be a tent, grilling hot dogs, contacting acquaintances with "Victorian" cars, and asking them to bring them to the lot for display. Also, the "Out and About" section and the ads in the classifieds will be run along with an ad in the Daily Herald . May, June, and July—We'll start with a little radio advertising, maybe sponsoring a morning weather program and continuing with our "Out and About" section and an ad in the Daily Herald . As for the classifieds, we'll determine at that time if they are worth using. August, September, and October—Still keeping with radio, sponsor a local high school sport and continue the "Out and About" section and an ad in the Daily Herald . November—We'll go with the "Out and About" section and the ad in the Daily Herald and determine if it's time to advertise in the classifieds. December—Have a coloring contest for the kids, with prizes that tie in with the holidays, advertising in the Alpena Journal and the Daily Herald. Budgeting $575.00 a month, a total of $6,900.00 a year, this should be a realistic dollar amount and provide us with plenty of exposure.
Management Team and Responsibilities —The management team members are Ben Heath, Margerie Heath, and Peter James, with Ben ultimately being the leader. Margerie's responsibilities will include F&I, bookkeeping, answering and routing phone calls and payroll. Peter will be maintaining and operating the automotive detail center. Ben will be responsible for the buying and selling of automobiles and overseeing all operations. The number one responsibility of our management team is to create a friendly atmosphere where our customers come first. They will always be courteously acknowledged with a friendly smile and a handshake.
Our main objective is to buy and sell 180 quality used vehicles in the first year of operation, with an increase per year of 60 vehicles, ultimately reaching an average of 300 cars per year.
We project $171,000.00 in gross profit for the first year, making that a $950.00 per unit gross after marketing sales expense is deducted, increasing accordingly with the number of units sold per year to reach our $315,000.00 gross profit by the fourth year.
Profit Projections —Budget Cars will have a net profit in the first year of operations.
Balance Sheet Projections —We are projecting an increase of net worth of the business by $39,154.05.
Initial Products and Services —When we first open in January 1997, if the weather is typically like most northern Michigan winters, there will be snow on the ground. Purposely the inventory will be minimal and focus on 4x4 trucks, utility units, and a family budget row of used cars that will satisfy the second car needs.
Need for the Product and Service —With the prices of new vehicles reaching an average of $20,000.00 plus, and continually raising each year, the used car, truck, and van market has become stronger. That's why Budget Cars is opening their doors in January 1997 to take a share of the market which is wide open in this area.
Major Suppliers —A majority of the vehicles that Budget Cars will offer will come from auctions and new car dealerships. The auctions will be our major suppliers of late model vehicles and the new car dealerships will be an access to the vehicles we can offer between $3,000.00 - $7,500.00. Other vehicles will come from trade-ins and private purchase units.
Background of the Industry —Immediately following World War II, there were roughly nine buyers for every new car produced. Sales personnel merely had to find out who could afford a new car. "Afford" was defined as paying cash. This condition existed until the early 1950s when supply began to discover that some new terms were creeping into the retail salesperson's vocabulary. Words like "overallowance," "discount," "deal," and "terms." The emphasis, however, was still not on product but on price. In addition, the asking price was no longer final. There was also, if you could haggle a little, a taking price. It was possible to bargain with the dealer for the first time. During the 1960s, other new merchandising techniques were introduced. "Sticker price," "fleet price," "hard sell," "50 over invoice," "high-powered advertising," and "free" accessories were but a few new innovations. The buyer was becoming better educated, better able to buy—thanks to 24- and 36-month payments—but still confused and fearful of price. "Good deals" became "bad deals" after talking to friends and neighbors. Caution became the watchword when buying a car. The advent of the 1970s brought more confusion to buyers with new procedures like leasing, 48-month payments, credit unions, rebates, and consumer advocates. However, in defense of the consumer, books on "How to Buy a Car," "Invoice Prices U.S. Cars," and "Used Car Buyers Guide," were published and sold by the millions. During the 1970s automobile salespeople became conditioned to the notion that customers were interested in only one thing—the very lowest price. The automobile showroom atmosphere didn't change very much from the 1970s to the 1980s. Most retail salespeople saw the business of selling automobile as an "us against them" hard-sell game. Those who sold popular Japanese products became arrogant and insensitive to their customers and those of us who sold American vehicles continued with the approach that price, and price alone, sells vehicles. As the 1980s came to a close, however, the winds of change began to impact the retail automobile marketplace. Today, in the mid 1990s, the business of retailing automobiles is quite different than it has ever been in the past. In today's marketplace, 5 out of every 6 cars sold in the United States are used.
Trade Association Assistance —Federal Register offers assistance with compliance guidelines for used car rules and (NADA) National Auto Dealers Association offers assistance.
Industry Trends —Vehicle sales seems to be a trend with our Michigan seasons. While the sun is shining and the temperatures are warm, outdoor family activities become more popular, encouraging camping, vacations, and sight seeing. These activities increase the demand for minivans, station wagons, and sport utility vehicles. As the kids head back to school and the weather turns cold, road conditions deteriorate. This creates demand for a more rugged, durable unit such as light duty trucks and vans. The extra security of four-wheel drive is also more popular during this season.
Number and Kind of Businesses in the Area in the Industry —There are four new car dealerships in Alpena that offer a line of used vehicles. There are also three used car lots in town offering a very limited selection of units.
Government Regulations —An important regulation of the government is to obtain and maintain a class "B" license. The Federal Trade Commission also publishes rules and regulations for operating a used car lot. The used car rule has four basic components. (1) Prepare and display a Buyers Guide on each used vehicle offered to the consumer. (2) To include a special disclosure in the contract of sale. (3) To identify the final warranty terms in the contract of sale. (4) To give the purchaser a copy of the Buyers Guide that includes the final warranty terms.
Business Cycle —Ups and downs go with any industry, but with the sale of used vehicles there seems to be more of a plateau. When the economy is good, sales are great. When the economy is sluggish, used cars are still in demand because of their price factor.
Customer Profile —Budget Cars will be focusing on three customer profiles. One being a first-time buyer, age 16-25, next being the middle-class family looking for a second car, and third, age 50 and over low-income adults.
Buying Decision Determinants —After presenting to the customer quality used vehicles that have been safety checked, backed with a warranty and a competitive low price, the main determinant that we believe will bring the customer to the close is working one on one with the owners and their honesty and reputations.
Customer Awareness of Product/Service —Our advertising campaign will ensure that the customer knows who and where we are. Our up close and personal interview process will be a thorough, detailed, step-by-step explanation of our product and commitment to our customers' needs.
Geographic —Our primary source of customer base will come from the local and surrounding counties. Starting from our location in Alpena, all of the counties are within a thirty-mile radius.
Population —The total population of our targeted customer base is 93,945 people. Using Alpena as a comparison, according to the Census taken in 1990, the total population of Alpena County was 21,265. The number of 18- to 25-year-olds was 1,547, the number of people 25-54 was 8,344, leaving a total of 6,273 over the age of 55. The percentage of population that was over the age of 18 at that time was 76%.
Sales —A statistic taken in 1990 determined the number of vehicles available per occupied housing unit in Alpena County. Of 8,580 housing units, 777 had no means of motorized transportation, 3,132 owned one vehicle, 3,346 housing units owned two vehicles, and 1,325 had three or more. In order for Budget Cars to reach its projected first-year goal of 15 units per month, only 2.4% of the Alpena market needs to be cornered. Any units sold to customers within the rest of the targeted counties will be additional business.
Market Growth —An estimated population increase throughout our targeted counties can only mean more people with a need for transportation. There was a population increase from 21,265 to 27,912 in Alpena County by 1995.
Jenson's Sales and Service Dodge, Chrysler, Jeep, Eagle, and used vehicles
Alpena Ford Mercury Ford, Mercury and used vehicles
Boji Buick Pontiac Oldsmobile GMC Buick, Pontiac, Oldsmobile, GMC Trucks, and used vehicles
Miller Chevrolet Cadillac Geo Chevrolet, Cadillac, Geo, and used vehicles
Car Trade Center
Thunderbird Auto
Jake's Auto Parts
Strengths and Weaknesses of the Competition —Jenson's Sales and Service is selling new and used cars on a more relaxed approach. Alpena Ford Mercury is aggressive in both new and used vehicle sales, with the majority of their used cars being higher priced program cars. Boji's is focused on new car sales. Miller offers new and used vehicles but are not very aggressive. There are three older used car lots in town that maintain a "B" license. Selling cars is not their main source of income. Very little, if any, priority is given to car sales.
Pricing —Budget Cars is in a better position than our larger competitors because the overhead is much lower. All deals will be conducted between the owner and customer with no commission paid salesperson taking a cut from the profit made on the deal. The clean-up and reconditioning of all vehicles will be completed in-house. This way we will be able to beat the larger dealers' prices every time and still make enough profit to maintain business expenses and build capital for future expansion. Our main goal will be to sell more for less and be known as "Your Family Used Car Center."
Marketing Overview —Budget Cars plans to focus on young first-time auto buyers, familes with second car needs, and low-income adults aged 50 and over. To capture this market we plan to advertise with the local newspaper and radio. But, more importantly, is the support and participation that we will show in community activities.
Marketing Objectives —Budget Cars's main marketing objective is to focus on the customers' wants and needs and, at the same time, maintain a marketable selection of vehicles at all times. This will allow us to effectively influence and persuade them to buy.
Advertising —Our main advertising strategy is to let our potential customer know that we are aware of their wants and needs and have quality inventory and prices. To prove it, we will let them know that if we don't have what they're looking for, we'll get it.
Marketing Budget —From the time that Budget Cars takes possession, until the point of sale, the marketing budget will average $300.00 per unit. This includes the driver's expense, a safety check, repair work, if needed, reconditioning, and all forms and documents used to track market trends.
Facility Requirements —The ideal facility for Budget Cars is a highly visible location with a lot large enough to hold 30 units and enough space for customer parking. Also, we will need a building large enough to house a reconditioning center and a sales floor with several private offices.
Reconditioning Department —The equipment needed for this area will be a rug doctor, shop vacuum, stripping wheel, six-foot ladder, hose and nozzle, buffer, heat gun, miscellaneous small tools, and a plow vehicle for snow removal.
Office and Sales Department —The equipment needed for this area will be two desks, nine chairs, one computer and printer, one fax machine, two phones, copy machine, two calculators, and a coffee machine.
Labor Requirements —Budget Cars will have two salaried owners as their main operators. Ben will be manning the sales and Peter will take care of the reconditioning department. Margerie, a full-time employee, will be handling the office duties.
Legal Status —Budget Cars will be a subchapter "S" corporation.
Accountant —William P. Johnson of William P. Johnson Company PC CPAs, Alpena, Michigan, will be Budget Cars' accountant.
Insurance —Cheryl Booker and Robert Ordowski of The Floyd Agency, Alpena, Michigan, will be Budget Cars' insurance agents.
Consultant —Phillip J. West of Alpena Community College, Alpena, Michigan, has been a consultant for Budget Cars.
Start-Up Costs —The start-up cost for Budget Cars will be $9,994.00. This figure includes office supplies, $377.00; marketing and reconditioning, $4,215.00; accounting and legal, $1,350.00; rental security deposit, $1,100.00; insurances, $1,575.00; gas expenses, $300.00; car phone and pager, $100.00; Chamber of Commerce dues, $177.00; and improvements to location, $800.00.
Sources/Uses of Funds —Personal funds, a $25,000.00 ten-year loan and $150,000.00 of floor plan will be used to operate the business.
Cash Flow Projections —Budget Cars foresees no cash flow projection problems.
Profit/Loss Projections/Breakeven Analysis —The Company expects to have a gross profit the first year of $60,237.00.
Balance Sheet Projections —Budget Cars projects an increase of net worth the first year to be $39,154.05.
Business Location —Budget Cars will be located in Alpena, Michigan.
Location Costs —The lease of the building will be $600.00 per month for two years.
Licenses, Permits and other Regulations —Budget Cars will need a class "B" dealership license, a sales tax I.D. number, and a city permit for the opening.
Insurance Needs —Budget Cars will need Fleet Insurance, Workman's Compensation, Renters' Insurance, and will be carrying health insurance for the shareholders.

Income Statement

This chart is a projection of our monthly cash flow after expenses. These figures have been meticulously researched and should be very close to the actual amounts. A start-up cost of $9,994.00 has not been included with these calculations.

Projected Yearly Gross Profit

This chart shows the average gross profit per unit and the profit potential with volume. Budget Cars has established goals in gross profit and volume for the next four years.

Projected Monthly Material Expenses

This chart shows the materials required monthly for the clean-up and reconditioning of 15 safety-checked units.

Class "B" Licensing Requirements

This list includes the necessary steps to take when acquiring a Class "B" Dealers License.

Original Application Assumed Name and/or Corporate Filing Fingerprint Cards Sketch or Photo of Business Location Zoning Approval Sheriff or Police Signature Repair Facility or Service Agreement Sales Tax License Secretary of State Branch Designation Fleet Insurance 2 Dealer Plates (Minimum) $10,000 Vehicle Dealer Surety Bond

Number of Vehicles Available per Household

This chart shows the number of vehicles per housing unit in Alpena County. We only need 2.4% of this market to reach our first-year gross profit goal.

Source: United States 1990 Census (April 1, 1990) summary tape file 3A. Tables compiled by the Alpena County Planning Department for Alpena County Planning Department for Alpena County municipalities.

Resumes and personality profiles of Budget Cars's management team.

CAREER GOAL

To own and operate a successful used-car dealership that I can devote all my energy and enthusiasm to.

WORK EXPERIENCE

Pine Country Ford, August 1986 - October 1990/July 1996 - Present (Sales Manager / Consultant)

*Create and maintain a diverse customer base *Conduct telephone interviews with potential customers *Maintain a thorough knowledge of all current inventory *Determine which inventory is marketable and contact buyers that may be interested *Persuade buyers into a oneon-one meeting *Recognize and satisfy customers' wants and needs *Assist customers in determining which vehicle and financing terms best fit their needs *Be the connecting link between the buyer and dealer while settling on a price which satisfies all parties involved

Alpena Ford Mercury, January 1991-June 1996 (Sales Consultant / Sales Manager)

*Oversee all sales operations to include showroom, display lot, and reconditioning shop *Appraise trade-in vehicles and offer a fair price that will encourage a sale and create a marketable trade-in *Order new vehicles from factory for retail and dealership inventory *Create a positive, enthusiastic atmosphere for the subordinate sales consultants that will promote increasing sales and high moral *Devise and carry out marketing plans to include advertising & promotions that will ensure growth and sales *Recognize customer needs and limitations through brief descriptions provided by sales consultants *Request and accept dealer trades that will satisfy a multitude of parties involved *Interact with the public on a constant daily basis in a positive, friendly, honest manner *Create and maintain a consistent marketable lot that will stimulate sales and growth through consumer tracking, market trends, and analyzing area economic status

United States Marines, March 1982 - July 1986 (Medical Administration Specialist)

*Decipher doctor-prepared patient charts and type them for future reference *Monitor, maintain, file, and organize patient records to ensure quality care *Operate all office equipment to include multi-line telephone, computer, printer, copy machine, facsimile machine

EDUCATIONAL BACKGROUND

University of Miami, Miami, Florida - December 1989, Used Vehicle Management

Ford Division Increasing Sales through Prospecting Course - April 1987

Ford Division Compact and Full-Size Light Truck Selling Course - March 1987

Ford Division National Walk Around Course (First place in competition) - February 1987

Roger Bolt Advance Sales Course - October 1986

Roger Bolt Professional Sales Course - November 1986

Alpena Community College, Alpena, Michigan - September 1981-June 1982, Business Management

*Psychology *Public Speaking

Central High School, New York, New York - September 1981-June 1982

*Algebra *Geometry *Accounting *English *Government *Economics *History *Social Studies

SPECIAL QUALIFICATIONS

*Ford Division Legend Leaders 300/500 Leadership Recognition Award 1995 *Top 10% Customer Satisfaction Diplomat Society Honors 1991, 1992, 1993, and 1994 *Ford Division Recognition for being the Top Salesperson for Alpena Ford 1990, 1991, 1992, 1993, promoted to Sales Manager in 1994 *Ford Division Recognition for being the Top Salesperson for Pine Country Ford 1986, 1987, promoted to Sales Manager in 1988 and in 1989 won Ford Division Professional Sales Managers Award, Top 10%

OUTSIDE INTERESTS

*Sunday School Teaching *Camping *Horseback Riding *Participating in outdoor activities with family *Gardening *Handy work around the house

REFERENCES AVAILABLE UPON REQUEST

Summary of Predictive Index Results

Name: Ben Heath Survey Date: June 12, 1996 Report Date: June 24, 1996

Ben is an engaging, stimulating communicator, poised and capable of projecting enthusiasm and warmth, and of motivating other people.

He has a strong sense of urgency, initiative, and competitive drive to get things done, with emphasis on working with people in the process. He understands people well and uses that understanding effectively in influencing and persuading others to act.

Impatient for results, and particularly impatient with details and routines, Ben is a confident and venturesome "doer" and decision-maker who will delegate details and can also delegate responsibility and authority when necessary. Ben is a self-starter who is skillful at training and developing others. He applies pressure for results, but in doing so, his style is more "selling" than "telling."

At ease and self-assured with groups or in making new contacts, Ben is gregarious and extroverted, has an invigorating impact on people, and is always "selling" in a general sense. He learns and reacts quickly and works at a faster-than-average pace. Able to adapt quickly to change and variety in his work, he will become impatient and less effective if required to work primarily with repetitive routines and details.

In general terms, Ben is an ambitious and driving person who is motivated by opportunity for advancement to levels of responsibility where he can use his skills as team builder, motivator, and mover.

MANAGEMENT STRATEGIES

To maximize his effectiveness, productivity, and job satisfaction, consider providing Ben with the following:

Opportunities for involvement and interaction with people
Some independence and flexibility in his activities
Freedom from repetitive routine and details in work which provide variety and change of pace
Opportunities to learn and advance at a fairly fast pace
Recognition and reward for communications and leadership skills demonstrated
Social and status recognition as rewards for achievement.

PETER JAMES

Occupational goal.

Seeking employment with a professional establishment that provides a challenging stimulating work atmosphere to individuals who demonstrate a positive self-starting attitude.

Alpena Ford Mercury, 1/17/95-Present Employer (Automotive Appearance Enhancement Technician) *Clean and detail engine compartments. *Strip excess finishes and imperfections with low RPM power wheel. *Repair minor scratches and discolorations of surface paints. *Rustproof over spray removal. *Paint Protection application. *Apply new finishes. *Perform interior cleaning and minor repair. *Apply dye to carpets and upholstery. *Operate industrial debris extractor. *Apply after market and OEM accessories.
American Waste Systems, 1/14/94-11/9/94 (Route Coordinator) *Maintain continuity of 10 collection routes by filling in and training new drivers for routes with short callings. *Organize route changes for maximum efficiency and make changes in computer automated route sheets. *Complete route audits and analysis.
Jackson's Disposal Service Inc., 1/6/91-1/13/94 (Collection Route Driver) *Operate manual and automatic transmission heavy trucks *Operate Clark Pneumatic Forklift. *Operate industrial recycling equipment such as cardboard baler, paper shredder, and glass crusher. *Operate FCC licensed two-way radios. *Operate front end loaders.
Holiday Inn of Alpena, 7/11/90-10/12/90 (Night Auditor) *Investigate cashier discrepancies *Credit card collection. *Complete computer automated audits. *Computer interfacing. *Accounts Payable/Receivable. *Word processing. *Facsimile sending & receiving *Modem communication. *Automated telephone switchboard operation.
United States Marines, 8/9/84-2/23/90 (Food Service Shift Leader, 4/1/89-2/20/90) (Shift Supervisor 3/10/88-4/1/89) (Night Auditor 1/1/86-3/10/88) (Desk Clerk 10/15/84-1/1/86) *Operate Wang Mainframe Computer. *Operate NCR cash register. *Utilize manual and computerized telephone switchboards. *Prepare City Ledger Accounts. *Accounts Payable/Receivable. *Bank deposits. *Assign Duties. *Prepare schedules. *Train personnel on computer. *Complete employee performance reports. *Meal preparation and stock ordering. *Calculate amount of food required for each day's consumption.
ASB Leadership School, June 7, 1989-July 6, 1989 *People/Resource Management
Alpena Community College, August 28, 1988-June 1, 1989 *Mathematics *Music
Community College of the Marines, October 15, 1984-February 23, 1990 *Hotel/Restaurant Management
Alpena High School, September 1, 1982-June 1, 1984 [Diploma 3.5 GPA] *Accounting *Algebra *Art *Geometry *English *Drafting *Physics

*Own and operate Acer 7100 personal computer with Microsoft Windows/Works & MS DOS. Also Installed Drivers for a Canon BJC 4000 Ink Jet Printer that is used with this computer. *Clean driving record with a commercial Class B endorsement. *Own & operate various Multi-Track sound recorders and mixers. *Perform extensive automobile repair & Car Stereo installations.

*Playing Guitar *Sound Recording *Operating my personal computer *Electronics *Automobiles *Home remodeling

Name: Peter James Survey Date: September 11, 1996 Report Date: September 11, 1996

Peter is an intense, results-oriented, self-starter, whose drive and sense of urgency are tempered and disciplined by his concern for the accuracy and quality of his work. His approach to anything he does, or is responsible for, will be carefully thought-out, based on thorough analysis and detailed knowledge of all pertinent facts.

Strongly technically oriented, he has confidence in his professional knowledge and ability to get things done quickly and correctly. With experience, he will develop a high level of expertise in his work and will be very aware of mistakes made either by himself or anybody doing work under his supervision. Peter takes his work and responsibilities very seriously and expects others to do the same.

In social matters, Peter is reserved and private, with little interest in small talk. His interest and his energy will be focused primarily on his work and, in general, he is more comfortable and open in the work environment than he is in purely social situations. In expressing himself in his work environment he is factual, direct, and authoritative.

Imaginative and venturesome, Peter is a creative person, capable of developing new ideas, systems, plans, or technology, or of analyzing and improving old ones. He relies primarily on his own knowledge and thinking, with little reference to others, relying as much as possible on himself alone to get things done. He will find it difficult to delegate, feeling strongly that if he is to be sure that something is done right, he must do it himself.

When, as a supervisor, it may be necessary for Peter to delegate details, he will follow up very closely and will be quick to spot and correct mistakes. His primary concern is to get things done right and quickly, and in accomplishing that goal he will be demanding of himself and others. While he may be perceived by other people as a rather aloof person, he will earn their respect for his knowledge of his work and the soundness of his decisions.

To maximize his effectiveness, productivity, and job satisfaction, consider providing Peter with the following:

Opportunities to broaden the technical knowledge of his work with learning experience in increasingly responsible positions
As much autonomy as possible in expressing his ideas and putting them into action
Recognition for tangible results obtained, rather than for political or selling skills

MARGERIE HEATH

To contribute the skills and abilities needed in the successful formation and continued operation of a profitable business.

Henderson Real Estate, June 1996-Present - Smith Realty, May 1987-June 1989 [Receptionist/Sales Agent]

*Receive and route phone calls *Arrange and store of documents *Prepare legal documents and business forms with word processor *Greet customers *Build and maintain a customer base *Identify the needs of customer requests *Present a list of available options *Conduct tours of properties of their interests *Acting as Liaison between Seller and Buyer to reach a result which is suitable to all parties

Hidden Valley Resort, June 1984-May 1996 - Duchess Inn, July 1987-January 1989 (Waitress/Hostess/Bartender/Supervision)

*Provide people a with warm, friendly atmosphere *Take orders and relay them to the kitchen staff utilizing a data processor *Fulfill orders and beverage requests in a quick and orderly manner *Monitor dining area and recognizing patrons' needs *Prepare guest check on computer *Process payment and provide correct change to guest *Recognize personnel shortages and take necessary action *Delegate responsibilities to co-workers *Train new personnel *Credit card collection *Prepare bank deposits

Michigan State University, September 1984-February 1987 *Business Administration/Psychology

Northern High School, September 1980-June 1984 *Business *Accounting *Algebra *Geometry *Pre-Calculus *English *Typing

*Maintain a valid real estate license *Teach Sunday School Courses *Full-time parent *Outgoing *6 year Cheerleader *Awarded for top monthly sales October 1995 *Caring *Enthusiastic

*Camping *Riding bike *Participating in outdoor sports of all kinds *Cooking *Playing cards *Gardening

Name: Margerie Heath Survey Date: July 10, 1996 Report Date: July 10, 1996

Margerie is a patient, stable, and cooperative person who will do her work as instructed and will depend on management and professional training to provide the necessary guidelines. She has the patience and tolerance required for routine work and can be relied on to do such work consistently and in a relaxed manner.

She will focus on the details of her work and will handle them with somewhat better-than-average accuracy. In work involving repeated contact with people, Margerie will be pleasant and agreeable, helpful and cooperative. She derives satisfaction from being of service to others, works comfortably under close supervision, and likes to feel part of a secure team.

Fairly easygoing, Margerie works at a steady, relatively unhurried pace and is comfortable doing the same things in the same way repeatedly. In the event of change in her work and responsibility, she needs to be given time to learn the new work thoroughly, which is best done with some opportunity for practice. Once having learned, she retains well.

In social terms, Margerie is unassuming, friendly and pleasant in general contact. She is a patient and willing listener, particularly with people she knows well and with whom she feels at ease.

Dependably consistent and steady in her work habits, Margerie will need close support and encouragement from supervision when she is required to work under pressure or in changing conditions.

To maximize her effectiveness, productivity, and job satisfaction, consider providing Margerie with the following:

Thorough, careful training in all detailed aspects and routines of her job
Opportunity for repetitive practice doing what she has been trained to do
A stable, familiar work environment and organization, with assurance of security provided by helpful, supportive management
Expressions of recognition for long service, cooperation and work well done
Assurances of stability, security, and continuity of relations with familiar coworkers

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Biden administration to require advanced safety tech on all new cars and trucks

The Biden administration plans to require that all new cars and trucks come with pedestrian-collision avoidance systems that include automatic emergency braking technology by the end of the decade.

In an interview, Transportation Secretary Pete Buttigieg said the requirement is designed to reduce pedestrian deaths, which have been on the rise in the post-Covid 19 era.

"So many Americans [are] losing their lives on our roadways," Buttigieg said. "We think we really have a responsibility to get this technology to be standard across the U.S. fleet."

The new standards will require all cars to avoid contact at up to 62 mph and mandate that they must be able to detect pedestrians in the dark. They will also require braking at up to 45 mph when a pedestrian is detected.

The Transportation Department projects the rule could save 360 lives a year and prevent 24,000 injuries.

Automatic emergency braking "prevents collisions. And collisions kill people — it’s that simple," Buttigieg said.

Luminar demonstrates the object detection and collision avoidance capabilities of its system at CES in Las Vegas on Jan. 5, 2022.

In a statement, the Alliance for Automotive Innovation, an industry trade group representing auto manufacturers, said it hadn't seen the new rule, so it couldn't comment directly.

It said that technologies like automatic emergency braking have proven "game changing" and that automakers have voluntarily committed to install them on new vehicles.

According to the Governors Highway Safety Association, drivers killed more than 7,500 pedestrians in 2022, the most since 1981 — with total deaths having about doubled over the past decade.

The pedestrian fatality rate, at 2.2 per billion vehicle miles traveled, is also higher than pre-pandemic levels, though it began to decline in the first half of 2023.

Research has shown that since the coronavirus pandemic, speeding and other risky driving behaviors have increased, while public transit ridership has declined, causing an increase in road deaths.

In addition, the pandemic delayed sales of newer vehicles, which tend to be safer and feature the latest accident-prevention technologies.

At the same time, more consumers are buying light trucks, including SUVs, which tend to be less safe.

Consumers have somewhat proven resistant to the proposed required technology, according to J.D. Power survey data.

"Drivers have reported a lot of issues with it activating when it shouldn’t," said Kathleen Rizk, J.D. Power's senior director for user experience benchmarking and technology. They also find that it's too sensitive or that it doesn't react the same way they would, she said.

"The perception is they're losing control," Rizk said, referring to the technological interventions built into modern passenger vehicles.

Buttigieg acknowledged the technology is still being perfected — one reason the requirement won't take effect until the end of 2029.

"We’re allowing a few years for this technology to be refined," he said, adding that hiccups in some examples of the safety features can be unhelpful.

"We need to make sure that these technologies are refined and developed," he said.

Buttigieg estimated the requirement will add $82 to the cost of a new vehicle, a price well worth the lives saved, he said.

"If there’s a technology that is this lifesaving ... we don’t want [it] to be only available to those who can afford it as a bell and whistle," he said. "We want to make sure every car rolling off the line has this capability."

Rob Wile is a breaking business news reporter for NBC News Digital.

Tom Costello is an NBC News correspondent based in Washington, D.C.

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Now's the time for Elon Musk to reveal his Tesla rescue plan — if he has one

We're about to find out if Elon Musk has a plan to save Tesla.
The EV maker is expected to report a 40% profit drop on Tuesday after a bruising year.
Demand is falling, competition is rising, and a push to make robotaxis is worrying some investors.

If Elon Musk has a secret rescue plan for Tesla hidden away, now would be a great time to show it to the world.

On Tuesday, the company is due to report first-quarter earnings for Tesla after a decisively brutal year so far that's left his electric vehicle maker looking like a shell of its former self.

Since the start of the year, Tesla's share price has been in freefall, sliding more than 40%, leaving it worth about $460 billion. Musk's own fortune has suffered a $61 billion drop too, though he's still the world's fourth-richest person.

Tesla is facing a host of problems.

Demand for electric vehicles has seemingly been vaporized, with deliveries of Tesla's vehicles plummeting hard and fast. This month, Tesla said it delivered about 387,000 vehicles in the first three months of the year, marking a 20% decline from the previous quarter.

As a result, Tesla is expected to report a 40% profit drop on Tuesday, per Bloomberg , as well as its first revenue drop in four years. Last week, it emerged that it was laying off more than 10% of its staff globally as it adjusts to this new reality.

More price cuts

The demand issue has been particularly prominent in one of Tesla's most important growth markets, China. Musk has engaged in a high-risk price war in the country with local rivals such as BYD as they win more buyers with cheaper — and, some say, better — vehicles.

Just this weekend, Tesla slashed the prices of its Model 3 and Model Y vehicles in China that previously sold for 245,900 yuan ($33,900) and 263,900 yuan ($36,500) respectively. It also cut prices in the US and Europe too.

Those cuts look like a significant move to boost sales after a punishing year for Tesla. But they might not be enough to stop a full-blown car crash.

Investors have grown skeptical of Musk's wider strategy to fulfill his ambition of popularizing electric vehicles for the mass market, which would see Tesla hitting an extraordinary sales goal of 20 million EVs per year by 2030 .

In part, it's because Musk's promises of delivering a mass-market car significantly cheaper than Tesla's current offerings look less certain than ever.

Robotaxi dreams

As recently as November, there had been suggestions that Tesla planned to build a sub-$30,000 car at its Berlin factory , but a Reuters report this month said Tesla plans to pivot the focus of its small-vehicle platform to robotaxis instead.

Though Musk — who has planned a big robotaxi event for August — denied the report , the emphasis on driverless cars has left people close to the company feeling "unsettled by the changes the CEO wants to push through," Bloomberg reported.

Autonomous driving has been a long-standing interest for Musk, but scaling such technology has proven challenging for the wider industry. General Motors' autonomous unit paused operations in November over regulator concerns after a collision, for instance.

To top it all off, Tesla is voluntarily recalling all the near-4,000 Cybertrucks it's so far produced over a fault with their accelerators, the US National Highway Traffic Safety Administration said.

For most CEOs, these issues would be plenty to keep them awake at night. But Musk also faces several other distractions in the face of a big legal battle over his Tesla compensation package , retaining advertisers at X, as well as making headway in the AI industry with Grok.

Will Musk prioritize Tesla over everything else? We're about to find out.

Watch: What happens when Elon Musk moves markets with a tweet

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Tesla stock soars 14% after Elon Musk commits to affordable vehicle launch following Q1 earnings miss

Tesla stock surged as much as 14% on Wednesday after the company reported 1st-quarter earnings.
While the company badly missed analyst estimates, Elon Musk did commit to an affordable car.
"We're updating our future vehicle lineup to accelerate the launch of our low-cost vehicles," Tesla said.

Tesla stock surged as much as 14% on Wednesday after the company reported a big first-quarter earnings miss but reiterated its plans to sell affordable vehicles.

Investors were concerned that Tesla was pivoting away from a low-cost vehicle to instead focus on its robotaxi ambitions following a report from Reuters earlier this month, but it appears the company is committed to both endeavors.

"We're updating our future vehicle lineup to accelerate the launch of our low-cost vehicles in a more capex-efficient way," Tesla vice president of vehicle engineering Lars Moravy said on the earnings call.

Here are the key numbers:

Revenue: $21.3 billion, compared to analyst estimates of $22.3 billion
Adjusted earnings per share: $0.45, compared to analyst estimates of $0.50
Gross margin: 17.4%, compared to analyst estimates of 16.5%

Tesla said its new vehicles could come in early 2025, or as soon as later this year.

"We've updated our future vehicle lineup to accelerate the launch of new models ahead, previously mentioned start of production in the second half of 2025. So, we expect it to be more like early 2025, if not late this year. These new vehicles, including more affordable models, will use aspects of the next-generation platform as well as aspects of our current platforms," Tesla CEO Elon Musk said.

While Tesla committed to selling a low-cost vehicle, the company also said it is fully committed to building a robotaxi network. Musk said the company will unveil its "Cybercab" robotaxi in August.

And if investors aren't on board with the company's autonomous driving plans, they should jump ship, according to Musk.

"If you value Tesla as just like an auto company, you just have to, fundamentally, it's just the wrong framework and if you ask the wrong question, then the right answer is impossible. So, I mean, if somebody doesn't believe Tesla is going to solve autonomy, I think they should not be an investor in the company," Musk said.

Tesla also said it is in discussions with a major car manufacturer to license its full self-driving technology, similar to how it has struck licensing deals for its car charging technology and supercharger network.

Wall Street analysts were mostly encouraged by Tesla's earnings call, especially after what has been a brutal year for the company with Tesla stock down more than 40% year-to-date going into the earnings call.

"Last night in a much needed conference call Elon Musk finally stepped up as the adult in the room and laid the foundation for Tesla's growth strategy with most importantly a lower cost vehicle now slated for 2025 production and delivery," Wedbush analyst Dan Ives said.

While Ives remained bullish on Tesla stock, he did lower his price target to $275 from $300.

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Honda to set up $11 bln electric vehicle, battery plants in Canada

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Honda announces plans to build electric vehicles and batteries in Ontario

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Additional reporting by David Ljunggren in Ottawa; Editing by David Dolan, Mark Potter, Elaine Hardcastle

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Tesla CEO and X owner Elon Musk attends the VivaTech conference in Paris

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Qantas planes are seen at a domestic terminal at Sydney Airport in Sydney

Australia's Qantas probing reports of data breach at loyalty app

Australia's Qantas Airways said on Wednesday it was investigating issues impacting its frequent flyer application, after media reports suggested there was a data breach allowing users access to other passengers' travel information.

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Car Dealership Business Plan Template

Written by Dave Lavinsky

Growthink.com How to Start a Car Dealership

Car Dealership Business Plan

Over the past 20+ years, we have helped over 4,000 entrepreneurs create business plans to start and grow their car dealerships. On this page, we will first give you some background information with regards to the importance of business planning. We will then go through a car dealership business plan template step-by-step so you can create your plan today.

Download our Ultimate Car Dealership Business Plan Template here >

What Is a Car Dealership Business Plan?

A business plan provides a snapshot of your car dealership as it stands today, and lays out your growth plan for the next five years. It explains your business goals and your strategy for reaching them. It also includes market research to support your plans.

Why You Need a Business Plan for Your Car Dealership

If you’re looking to start a car dealership or grow your existing car dealership you need a business plan. A business plan will help you raise funding, if needed, and plan out the growth of your car dealership in order to improve your chances of success. Your car dealership business plan is a living document that should be updated annually as your company grows and changes.

Source of Funding for Car Dealership Businesses

With regards to funding, the main sources of funding for a car dealership are personal savings, bank loans and angel investors. With regards to bank loans, banks will want to review your business plan and gain confidence that you will be able to repay your loan and interest. To acquire this confidence, the loan officer will not only want to confirm that your financials are reasonable. But they will want to see a professional plan. Such a plan will give them the confidence that you can successfully and professionally operate a business.

The second most common form of funding for a car dealership is angel investors. Angel investors are wealthy individuals who will write you a check. They will either take equity in return for their funding, or, like a bank, they will give you a loan.

Finish Your Business Plan Today!

Your business plan should include 10 sections as follows:

Executive Summary

Your executive summary provides an introduction to your business plan, but it is normally the last section you write because it provides a summary of each key section of your plan.

The goal of your Executive Summary is to quickly engage the reader. Explain to them the type of car dealership you are operating and the status; for example, are you a startup, do you have a car dealership that you would like to grow, or are you operating a chain of car dealerships.

Next, provide an overview of each of the subsequent sections of your plan. For example, give a brief overview of the car dealership industry. Discuss the type of car dealership you are operating. Detail your direct competitors. Give an overview of your target customers. Provide a snapshot of your marketing plan. Identify the key members of your team. And offer an overview of your financial plan.

Company Analysis

In your company analysis, you will detail the type of car dealership you are operating.

For example, you might operate one of the following types:

New Car Dealers : this type of car dealership business typically sells both new and used passenger vehicles. Usually, this type of dealership also has a service department and also sells parts.
Used Car Dealership : this type of car dealership sells used passenger vehicles, including cars, light trucks, sports utility vehicles (SUVs) and passenger vans.
Online Car Dealership : this type of car dealership retails automobiles online to consumers and businesses and provides services to aid in the purchase of automobiles. Some players offer their customers trade-in, car financing and car selling services.

In addition to explaining the type of car dealership you operate, the Company Analysis section of your business plan needs to provide background on the business.

Include answers to question such as:

When and why did you start the business?
What milestones have you achieved to date? Milestones could include sales goals you’ve reached, new store openings, etc.
Your legal structure. Are you incorporated as an S-Corp? An LLC? A sole proprietorship? Explain your legal structure here.

Industry Analysis

In your industry analysis, you need to provide an overview of the car dealership business.

While this may seem unnecessary, it serves multiple purposes.

First, researching the car dealership industry educates you. It helps you understand the market in which you are operating.

Secondly, market research can improve your strategy particularly if your research identifies market trends. For example, if there was a trend towards vehicles, it would be helpful to ensure your plan calls for plenty of options.

The third reason for market research is to prove to readers that you are an expert in your industry. By conducting the research and presenting it in your plan, you achieve just that.

The following questions should be answered in the industry analysis section of your car dealership business plan:

How big is the car dealership business (in dollars)?
Is the market declining or increasing?
Who are the key competitors in the market?
Who are the key suppliers in the market?
What trends are affecting the industry?
What is the industry’s growth forecast over the next 5 – 10 years?
What is the relevant market size? That is, how big is the potential market for your car dealership. You can extrapolate such a figure by assessing the size of the market in the entire country and then applying that figure to your local population.

Customer Analysis

The customer analysis section of your car dealership business plan must detail the customers you serve and/or expect to serve.

The following are examples of customer segments: college students, soccer moms, baby boomers, etc.

As you can imagine, the customer segment(s) you choose will have a great impact on the type of car dealership you operate. Clearly baby boomers would want a different atmosphere, pricing and product options, and would respond to different marketing promotions than college students.

Try to break out your target customers in terms of their demographic and psychographic profiles. With regards to demographics, include a discussion of the ages, genders, locations and income levels of the customers you seek to serve. Because most car dealerships primarily serve customers living in their same city or town, such demographic information is easy to find on government websites.

Psychographic profiles explain the wants and needs of your target customers. The more you can understand and define these needs, the better you will do in attracting and retaining your customers.

Finish Your Car Dealership Business Plan in 1 Day!

Don’t you wish there was a faster, easier way to finish your business plan?

With Growthink’s Ultimate Car Dealership Business Plan Template you can finish your plan in just 8 hours or less!

Competitive Analysis

Your competitive analysis should identify the indirect and direct competitors your business faces and then focus on the latter.

Direct competitors are other car dealerships.

Indirect competitors are other options that customers have to purchase from that aren’t direct competitors. This primarily includes private sellers. You need to mention such competition to show you understand that not everyone in the market for a car shops at a dealership.

With regards to direct competition, you want to detail the other car dealerships with which you compete. Most likely, your direct competitors will be car dealerships located very close to your location.

For each such competitor, provide an overview of their businesses and document their strengths and weaknesses. Unless you once worked at your competitors’ businesses, it will be impossible to know everything about them. But you should be able to find out key things about them such as:

What types of customers do they serve?
What types of automobiles do they offer?
What is their pricing (premium, low, etc.)?
What are they good at?
What are their weaknesses?

With regards to the last two questions, think about your answers from the customers’ perspective. And don’t be afraid to stand outside your competitors’ locations and ask customers as they leave what they like most and least about them.

The final part of your competitive analysis section is to document your areas of competitive advantage. For example:

Will you provide superior products and/or services?
Will you provide cars that your competitors don’t offer?
Will you make it easier or faster for customers to acquire your products?
Will you provide better customer service?
Will you offer better pricing?

Think about ways you will outperform your competition and document them in this section of your plan.

Marketing Plan

Traditionally, a marketing plan includes the four P’s: Product, Price, Place, and Promotion. For a car dealership business plan, your marketing plan should include the following:

Product : in the product section you should reiterate the type of car dealership that you documented in your Company Analysis. Then, detail the specific products you will be offering. For example, in addition to selling new cars, will you offer leasing options?

Price : Document the prices you will offer and how they compare to your competitors. Essentially in the product and price sub-sections of your marketing plan, you are presenting the inventory you will maintain and the price ranges.

Place : Place refers to the location of your car dealership. Document your location and mention how the location will impact your success. For example, is your car dealership located next to a high-traffic retail area, or on a main thoroughfare, etc. Discuss how your location might provide a steady stream of customers.

Promotions : the final part of your car dealership marketing plan is the promotions section. Here you will document how you will drive customers to your location(s). The following are some promotional methods you might consider:

Making your car dealership extra appealing to attract passing customers
Pay per click advertising
Advertising in local papers and magazines
Reaching out to local bloggers and websites
Social media advertising
Local radio advertising
Banner ads at local venues

Building Trust

Building trust between a car dealer and its customers is vital to a successful sales strategy. This should be clear in the business plan, where funders look to see the feasibility of the company once it’s launched. Earning customer trust is important because of the bad reputation, deserved or not, for car salespeople to try to take advantage of customers and because of the high amount of stress which the purchase of a large item like a car causes for buyers.

Below are the best ways to build trust in your customers.

Referrals and Testimonials

Running a dealership with a heavy focus on satisfied customers referring other potential customers can create positive word-of-mouth between contacts who already know and trust each other. An additional element to this is securing testimonial statements (either written or videotaped) from happy customers. This requires having those happy customers in the first place, as customers can sense if the testimonials are canned and will mistrust even further.

Transparency

If auto dealerships were extremely clear about all pricing, fees, and costs of ownership up front, customers might change their opinion of these companies. However, too often there is a great focus on a low sticker price to attract customers who later on feel they’ve been lied to when all of the add-on charges are explained. Can your dealership change this industry practice and make transparency into a competitive advantage?

Taking Your Time

By taking the sales process at a rate that the customer is comfortable with, you recognize that it is a difficult step for customers to walk into the world of the dealer and play on his home turf, so to speak. They will be feeling defensive and a bit thrown off, so tell them that you will take the time to answer any questions they have and to make sure they understand and have considered their options before moving forward.

Operations Plan

While the earlier sections of your car sales business plan explained your goals, your operations plan describes how you will meet them. Your operations plan should have two distinct sections as follows.

Everyday short-term processes include all of the tasks involved in running your car dealership such as serving customers, completing necessary paperwork, keeping the dealership clean, etc.

Long-term goals are the milestones you hope to achieve. These could include the dates when you expect to serve your 1,000th customer, or when you hope to reach $X in sales. It could also be when you expect to hire your Xth employee or launch a new location.

Management Team

To demonstrate your car dealership’s ability to succeed as a business, a strong management team is essential. Highlight your key players’ backgrounds, emphasizing those skills and experiences that prove their ability to grow a company.

Ideally you and/or your team members have direct experience in the car dealership business. If so, highlight this experience and expertise. But also highlight any experience that you think will help your business succeed.

If your team is lacking, consider assembling an advisory board. An advisory board would include 2 to 8 individuals who would act like mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience in car dealerships and/or successfully running retail and small businesses.

Financial Plan

Your financial plan should include your 5-year financial statement broken out both monthly or quarterly for the first year and then annually. Your financial statements include your income statement, balance sheet and cash flow statements.

Income Statement : an income statement is more commonly called a Profit and Loss statement or P&L. It shows your revenues and then subtracts your costs to show whether you turned a profit or not.

In developing your income statement, you need to devise assumptions. For example, will you serve 20 customers per week or 75? And will sales grow by 2% or 10% per year? As you can imagine, your choice of assumptions will greatly impact the financial forecasts for your business. As much as possible, conduct research to try to root your assumptions in reality.

Balance Sheets : While balance sheets include much information, to simplify them to the key items you need to know about, balance sheets show your assets and liabilities. For instance, if you spend $100,000 on building out your car dealership, that will not give you immediate profits. Rather it is an asset that will hopefully help you generate profits for years to come. Likewise, if a bank writes you a check for $100.000, you don’t need to pay it back immediately. Rather, that is a liability you will pay back over time.

Cash Flow Statement : Your cash flow statement will help determine how much money you need to start or grow your business, and make sure you never run out of money. What most entrepreneurs and business owners don’t realize is that you can turn a profit but run out of money and go bankrupt. For example, let’s say a company approached you with a $1,000,000 fleet order, that would cost you $500,000 to fulfill. Well, in most cases, you would have to pay that $500,000 now for inventory, transportation, employee salaries, etc. But let’s say the company didn’t pay you for 180 days. During that 180 day period, you could run out of money.

In developing your Income Statement and Balance Sheets, be sure to include several of the key costs needed in starting or growing a car dealership:

Location build-out including design fees, construction, etc.
Cost of equipment like computer hardware and software, etc.
Cost of maintaining an adequate amount of supplies
Payroll or salaries paid to staff
Business insurance
Taxes and permits
Legal expenses

Attach your full financial projections in the appendix of your plan along with any supporting documents that make your plan more compelling. For example, you might include your store design blueprint or location lease.

Car Dealership Business Plan Summary

Putting together a business plan for your car dealership is a worthwhile endeavor. If you follow the template above, by the time you are done, you will truly be an expert. You will really understand the car dealership business, your competition and your customers. You will have developed a marketing plan and will really understand what it takes to launch and grow a successful car dealership business.

Download Our Car Dealership Business Plan PDF

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

Car Dealership Business Plan FAQs

What is the easiest way to complete my car dealership business plan.

Where Can I Download a Car Dealership Business Plan PDF?

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

Don’t you wish there was a faster, easier way to finish your Car Dealership business plan?

OR, Let Us Develop Your Plan For You

Since 1999, Growthink has developed business plans for thousands of companies who have gone on to achieve tremendous success. Click here to see how Growthink’s business plan advisors can give you a winning business plan.

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