used car dealership business plan template

Car Dealership Business Plan Template & PDF Example

• August 27, 2024
• Business Plan

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

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

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

Our car dealership business plan is meticulously organized to encompass all key components necessary for a comprehensive strategic framework. It details our dealership’s operations, marketing strategies, market environment, competitors, leadership team, and financial outlook.

• Executive Summary : Offers an overview of your Car Dealership’s business concept, including the range of new and pre-owned vehicles, market analysis , management team, and financial strategy.
• Car Dealership & Location: Describes the dealership’s prime location, accessibility, and facility features, including the showroom and service area.
• Vehicles & Rates: Lists the types of vehicles offered, from economical compact cars to luxury SUVs, including pricing and financing options.
• Key Stats: Shares industry size , growth trends, and relevant statistics for the car dealership market.
• Key Trends: Highlights recent trends affecting the car dealership sector, such as the surge in Electric Vehicle (EV) sales and the shift towards Built-to-Order sales.
• Key Competitors: Analyzes main competitors in the area and how your dealership differentiates itself, focusing on vehicle selection, customer service, and additional services like maintenance and repairs.
• SWOT : Strengths, weaknesses, opportunities, and threats analysis tailored to the car dealership business.
• Marketing Plan : Strategies for promoting your dealership and attracting customers, including online presence, targeted promotional campaigns, and community engagement.
• Timeline : Key milestones and objectives from the initial setup through the first year of operation and beyond.
• Management: Information on who manages the Car Dealership, detailing their roles, experience in the automotive industry, and business management.
• Financial Plan: Projects the dealership’s 5-year financial performance, including revenue from vehicle sales, profit and loss statements, cash flow analysis, and balance sheet.

Car Dealership Business Plan

Fully editable 30+ slides Powerpoint presentation business plan template.

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

Executive Summary

The Executive Summary introduces your car dealership’s business plan, providing a succinct overview of your dealership and its offerings. It should describe your market positioning, the range of vehicles you offer—including new and pre-owned cars, financing options, and after-sales services—its location, size, and an overview of daily operations.

This section should also delve into how your car dealership will establish itself within the local market, including the number of direct competitors in the area, identifying who they are, along with your dealership’s unique selling points that set it apart from these competitors.

Moreover, you should include information about the management and founding team, detailing their roles and contributions to the dealership’s success.

Additionally, a summary of your financial projections, including revenue and profits over the next five years, should be included here to provide a clear picture of your dealership’s financial strategy.

Car Dealership Business Plan Executive Summary Example

Business Overview

An effective executive summary starts with a concise yet informative  business overview . This includes spotlighting the dealership’s name, its prime location, and an insight into its daily operations.

Highlighting the  unique selling proposition  ( USP ) is vital. Whether it’s the dealership’s commitment to customer service excellence, a diverse inventory offering various vehicle brands, or personalized after-sales services, this distinct factor sets the dealership apart in a competitive automotive market.

Example: “[Your Company Name],” situated in the heart of [City/Region], operates as a premier car dealership. Spanning a spacious facility, it offers various vehicles catering to diverse customer preferences, ranging from economical compact cars to luxury SUVs. Our dealership’s USP lies in delivering an extensive selection of top-tier vehicle brands such as Toyota, Ford, BMW, and Tesla, combined with a commitment to comprehensive after-sales support, financing options, and access to a state-of-the-art service center.

Market Overview

A compelling executive summary includes an insightful market overview. It should encompass  market size , growth trends, and an analysis of the  competitive landscape  within the automotive dealership industry.

Example: The US car dealership market represents $614 billion in total vehicle sales in 2022. Notably, the average yearly revenue per dealership stands at approximately $36.5 million, emphasizing the significance of each dealership’s role in the market. Recent trends illustrate a surge in Electric Vehicle (EV) sales, doubling in 2022, while a shift towards Built-to-Order sales aligns with evolving consumer preferences for personalized vehicles. The market is characterized by a mix of national dealership chains and independent local dealers, with [Your Company Name] poised to carve a niche by providing a diverse vehicle inventory and unparalleled customer service.

Management Team

The proficiency and expertise of the management team are integral to the success of your car dealership. This section aims to spotlight the qualifications and experiences of key team members, emphasizing their pivotal roles in steering the dealership toward success.

Highlighting the team’s expertise in managing financial operations, budgeting, financial analysis, and ensuring the dealership’s financial stability and growth builds credibility and assures potential investors and partners of the dealership’s capability.

Example: [Your Company Name] is led by a proficient management team with a wealth of experience in overseeing financial operations, budgeting, and analysis. Their expertise in identifying cost-saving  opportunities , ensuring financial stability, and driving sustained growth for the dealership forms the backbone of our operations.

Financial Plan

The financial plan section encapsulates the strategic fiscal objectives and projections of your car dealership. It offers a concise overview of revenue targets and profit margins and outlines the trajectory guiding the dealership’s financial growth.

Example: As part of our strategic growth plan, [Your Company Name] aims to attain a significant milestone by achieving $38 million in yearly revenue and a commendable  operating profit  margin ( EBITDA ) by 2028. This strategic trajectory involves maintaining competitive pricing structures, a relentless focus on operational efficiency, and an unwavering commitment to delivering unparalleled customer service. These strategies, coupled with the dedication of our adept team, aim to ensure consistent growth and profitability for the dealership in the years ahead.

For a Car Dealership, the Business Overview section can be effectively divided into 2 main categories:

Car Dealership & Location

Describe the dealership’s physical setup, focusing on its design, layout, and overall ambiance that welcomes customers. Mention features such as the showroom’s size, the display arrangement of vehicles, and any customer-friendly areas like waiting lounges or consultation spaces.

Next, highlight the dealership’s location, emphasizing its accessibility and the convenience it offers to customers, such as proximity to major roads or highways and the ease of parking. Also, explain why this location is strategically chosen to attract your target customer base, considering factors like local traffic flow, visibility, and the presence of nearby complementary businesses.

Vehicles & Rates

Detail the variety of vehicles offered, including new and pre-owned models, different brands, and vehicle types (such as sedans, SUVs, trucks, and electric vehicles). Emphasize any unique or highly sought-after models that could attract customers.

Outline your pricing strategy for the vehicles, ensuring it reflects the value offered and aligns with the market segment you’re targeting. Discuss any financing options, leasing deals, or special promotions that make purchasing more accessible and appealing to customers.

Industry Size & Growth

In the Market Overview of your car dealership business plan, begin by analyzing the size of the automotive industry and its growth potential. This examination is essential for grasping the market’s breadth and pinpointing opportunities for expansion.

Key Market Trends

Next, delve into current market trends , such as the growing consumer interest in electric and hybrid vehicles, advanced safety features, and digital sales platforms. Highlight the demand for vehicles that cater to evolving lifestyle needs and environmental concerns, along with the shift towards online purchasing and personalized buying experiences.

Competitive Landscape

A  competitive analysis  is not just a tool for gauging the position of your car dealership in the market and its key competitors; it’s also a fundamental component of your business plan. This analysis helps in identifying your car dealership’s unique selling points, essential for differentiating your business in a competitive market.

In addition, the competitive analysis is integral in laying a solid foundation for your business plan. By examining various operational aspects of your competitors, you gain valuable information that ensures your business plan is robust, informed, and tailored to succeed in the current market environment.

Identifying Your Competitors in the Car Dealership Industry

The initial step towards understanding your dealership’s position involves identifying and analyzing the key competitors within the automotive market. Start by mapping out local car dealerships, both independent and franchised, specializing in similar vehicle types or brands.

For instance, if your dealership specializes in luxury vehicles, your direct competitors might include other luxury dealerships within your vicinity, as well as larger franchised dealerships offering similar high-end car models. Additionally, consider indirect competitors such as online car sales platforms or used car dealerships, as they may cater to overlapping customer segments.

Leverage online tools and platforms such as dealership locators on automotive brand websites, Google Maps, and industry-specific platforms like Edmunds or Cars.com to gain insights into competitor locations and their inventory offerings. 

Analyzing customer reviews and ratings on platforms like Yelp or DealerRater can provide valuable information about competitor  strengths and weaknesses . For instance, positive reviews praising the customer service or wide vehicle selection at a rival dealership highlight aspects crucial for comparison.

Car Dealership Competitors’ Strategies

An in-depth analysis of your competitors’ strategies involves scrutinizing various facets of their operations:

• Vehicle Inventory:  Evaluate the range and variety of vehicles offered by competitors. If a nearby dealership gains traction with electric or hybrid models, it signifies an emerging  market trend  towards eco-friendly vehicles that might influence consumer preferences.
• Sales and Financing Approach:  Consider the sales tactics and financing options employed by competitors. A dealership offering flexible financing plans or exclusive warranty packages may attract customers seeking added value.
• Customer Service and Support:  Assess the quality of customer service and post-sale support provided by competitors. A dealership known for its responsive customer service or efficient maintenance services may have a competitive edge.
• Marketing and Promotion:  Study competitors’  marketing strategies , whether they rely on digital marketing, traditional advertising, or exclusive promotional events. A dealership leveraging social media influencers or hosting test-drive events could have a unique marketing approach.
• Technological Integration:  Observe if competitors embrace innovative technologies in their operations, such as virtual showrooms or online vehicle customization tools. A dealership utilizing augmented reality for virtual car tours might stand out in enhancing the customer experience.

What’s Your Car Dealership’s Value Proposition?

Reflect on your dealership’s distinct  value proposition . Perhaps your dealership specializes in rare vintage car collections or offers personalized concierge services for clients. Identifying gaps in the market through customer feedback and emerging industry trends is crucial.

For instance, the increasing demand for electric vehicles or the emphasis on contactless transactions could signify opportunities for differentiation if competitors have yet to fully cater to these preferences.

Consider your dealership’s location and target demographic. A dealership situated in a bustling urban area might prioritize convenience and streamlined services, while one in a suburban setting might emphasize family-oriented vehicle options and comprehensive safety features.

Begin with a SWOT analysis for the car dealership , identifying Strengths (such as a diverse vehicle inventory and strong customer service), Weaknesses (like limited market presence or competitive pressure), Opportunities (for instance, the growing demand for electric vehicles and online sales channels ), and Threats (such as economic fluctuations affecting consumer spending on big-ticket items).

Marketing Plan

Then, craft a marketing plan that details strategies to attract and retain customers through targeted advertising campaigns, promotional financing offers, a dynamic online presence, and community engagement events.

Marketing Channels

Marketing channels for a car dealership serve as pathways to communicate your brand and vehicle offerings to potential buyers. These channels are vital for establishing brand awareness, engaging with customers, and driving foot traffic to your showroom.

Digital Marketing

In today’s digital era, a robust online presence is imperative. This includes:

• Social Media : Utilize platforms like Instagram and Facebook to showcase your inventory, share informative car-related content, and engage with users through comments and direct messages.
• Website and SEO:  Develop a user-friendly website displaying your inventory, customer testimonials, and blog posts about car buying tips and industry updates. Implement SEO strategies to enhance your dealership’s online visibility.
• Email Marketing:  Build an email list by offering incentives like exclusive previews of new vehicle arrivals or maintenance tips. Send regular newsletters with updates on promotions, vehicle features, and industry news.

Local Advertising

Connecting with your local community can yield substantial results:

• Radio and TV Ads:  Utilize local radio stations or television channels to broadcast ads highlighting special deals, seasonal promotions, or unique vehicle models.
• Community Involvement:  Sponsor local events, charity drives, or sports teams to boost brand visibility and forge community connections.
• Partnerships:  Collaborate with complementary businesses like insurance agencies or car maintenance centers to offer bundled services or joint promotional deals.

Promotional Activities

Captivate potential buyers with compelling offers:

• Special Promotions:  Launch seasonal sales events such as ‘Year-End Clearance’ or ‘Summer Road Trip Deals.’ Offer discounts or incentives for test drives.
• Referral Programs:  Incentivize existing customers to refer friends and family by offering discounts on services or accessories for successful referrals.
• Customer Appreciation Events:  Organize exclusive events or workshops showcasing vehicle features, safety tips, or new technological advancements.

Sales Channels

Sales channels  are instrumental in selling vehicles and additional services to customers. These channels optimize revenue and ensure customer satisfaction.

In-Showroom Upselling

Maximize sales opportunities during customer visits:

• Additional Features:  During test drives or vehicle selection, highlight premium features or upgrades available for specific models.
• Service Packages:  Offer bundled maintenance packages or extended warranties to add value to the purchase.
• Finance and Insurance Services:  Educate customers about financing options and insurance packages available through the dealership.

Online Sales and Services

Leverage technology for efficient sales processes:

• Online Inventory Access:  Enable customers to browse your inventory, check vehicle specifications, and schedule test drives through your website or dedicated mobile application.
• Virtual Showroom Experience:  Offer virtual tours or interactive presentations of vehicles, providing a comprehensive experience for online buyers.
• E-Commerce:  Facilitate online transactions for accessories, spare parts, or merchandise associated with the vehicles you sell.

Customer Retention Programs

Encourage repeat business and foster loyalty:

• Maintenance Plans:  Offer subscription-based maintenance plans for regular servicing and upkeep of purchased vehicles.
• Customer Support and Engagement:  Establish a customer service department for addressing queries, and feedback, and providing ongoing support post-purchase.
• Exclusive Benefits: I mplement membership or loyalty programs offering discounts on future purchases, priority servicing, or VIP events. These programs foster a sense of belonging and incentivize customers to continue their relationship with your dealership.

Strategy Timeline

Lastly, establish a comprehensive timeline that marks key milestones for the dealership’s launch, marketing initiatives, customer base development, and growth goals, ensuring the business progresses with clarity and focus.

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

For your car dealership business plan, list the core team members, their specific responsibilities, and how their expertise supports the business.

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

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

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

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

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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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Car Dealership Business Plan

Used 4,959 times

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

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Car Dealership Business Plan Template

Created by:

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

​ [Owner.Company] ​

EXECUTIVE SUMMARY

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

COMPANY DESCRIPTION

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

MARKET ANALYSIS

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

MARKETING STRATEGY

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

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

FINANCIAL PLAN

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

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

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

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Used Car Dealer Business Plan Template

•   Used Car Dealer Business Plan Template (Microsoft Word)  –  $47.00
•   +Add Excel Worksheet (Recommended)  –  $35.00
•   +Add PowerPoint Template and 4 Funding eBooks  –  $65.00
•   +Add Business Startup, Finance, Marketing Documents 781 Templates  –  $185.00
•   +Add Operational, Employee and Policy and Procedure Templates  –  $35.00

How to get funding for your Used Car Dealer business!

“Here’s the ‘Perfect Solution’ to getting your Used Car Dealer business funded quickly…even if you don’t have a clue on how to write a business plan and don’t have the budget to pay a professional to do it!”

If you want to get your Used Car Dealer business organized and funded then here’s the perfect solution:

Did you know that a well-written and researched business plan is the key to getting funding for your Used Car Dealer business?

But most entrepreneurs neglect this aspect of their startup.

That’s usually because they are not knowledgeable enough to write a business plan on their own.

Or do not have the budget to pay a professional business plan writer.

But if you’ve ever wanted to start a Used Car Dealer business and you need to write a business plan to get funding then our Hybrid Fusion Business Plan Template is for you .

Our Hybrid Business Plan Template is not just high quality, in-depth and researched, but also a business plan that has examples for you to insert your own market and business specifics into.

A Used Car Dealer business is a great business for those interested in entrepreneurship.

A used car dealership can be a profitable venture due to the constant demand for affordable vehicles. With the increasing costs of new cars, many consumers turn to the used car market to find reliable transportation options at lower prices. Additionally, the variety of inventory in the used car market allows dealerships to cater to various customer preferences and budgets. Moreover, the resale value of used cars remains relatively stable, providing dealers with opportunities to meet the needs of different buyers. Furthermore, as more people prioritize sustainability and environmental consciousness, buying a used car is often seen as a more eco-friendly choice compared to purchasing a new vehicle.

And with our business plan template, you’ll be able to seek funding from investors and be up and running in no time.

With modifications (Like the name of your company and owner’s bio, market, financials, company images and location specifics) you can customize this business plan for your exact needs.

Here’s why a free business plan template can risk your chances of funding:

Lenders and investors see thousands of business plans and they know when you’re using a generic free template because the “Wording is just not right.”

You can have the best idea for your venture and pitch it to them perfectly, however when you leave and they review your plan what will it really say about you?

And free isn’t really free if it costs you your funding .

Why leave the future of your business to chance?

Our business plan templates are written for your specific market and references are included.

Start your business off the right way with our comprehensive Hybrid business plan template.

As part of this package, you will receive our Used Car Dealer business plan template, which contains the following sections:

• Executive summary
• The enterprise
• The business concept and need
• Industry/market overview.
• Growth strategy and implementation summary
• Management plan
• Risk factor
• Use of proceeds

Click here to view sample pages of this exact plan.

Depending on which version of the business plan options you purchase (more on that in a moment), you’ll receive the following:

34 pag e Used Car Dealer busin ess plan template with references.

• This Used Car Dealer business plan template will be delivered via digital download in fully editable Microsoft Word and includes a Used Car Dealer business pre-written example text, general industry research, references, and narrative already completed for you.
• Red instructional text above each section is included to let you know what to insert in that section. In some areas, you can just add your information, in others you will need to use the example text as a basis to write your own business specifics such as what sets you apart, your local market, your business team, etc.

Click here for screenshots of the plan you will be receiving.

Used Car Dealer Financ ial Template in Microsoft Excel (recommended )

This Excel template will allow you to enter financial data specific to your business and will produce proforma financial statements for use in your business plan. The worksheets (Set-up, Start-up, Sales, Headcount, Inventory, Operating Expenses, Capital Budget, Equity & Debt, and Amortization Schedule) contain instructions, questions for you to answer, and boxes (cells) for data entry. Cells in which you are to answer questions or enter data are yellow. Purple cells contain formulas that will be calculated automatically.

Click here for screenshots of these documents.

Business Funding Package with PowerPoint and 4 eBooks

(A must-have if actively seeking investment). Includes a business Microsoft PowerPoint slideshow template “Pitch Deck” to show lenders and investors your concept at a glance. It includes 12 slides with instructional text for you to insert your specific business images and information into.

This funding package also includes the Funding eBook bundle to educate you on your funding options and how to best present your business concept. These 4 eBooks guide you through individual interventions, second-party arrangements, corporate funding options, government interventions, managing business cash flow, quick start funding overview, exit strategy, common mistakes to avoid when pitching your concept, and much more.

Business Startup, Finance and Marketing Templates to show investors that your business is prepared to launch

Business Assessment Documents. Vital documents to make sure you are prepared for your venture. Includes: Business Plan Guidelines, Strategic Planning Checklist, Trend Analysis Checklist, Executive Summary Template, Market Study Outline and Business Analysis Worksheet. 6 Documents to help get you organized.

Business Startup Documents. Essential Documents to Help Launch Your Venture. Includes: Board of Directors Documents, Confidentiality Agreements, General Administration, Basic Financial Checklist, Franchise Feasibility Test, Startup Cost Worksheet, Franchise Comparison Worksheet, Strategic Management, Organization-Wide Goals and much more. 66 Documents to help you get started.

Raising Capital Documents. Practical documents to help you get started raising capital. Includes: Government Grants and Program Worksheets and Guide, Loans and Borrowing Documents, Investment Analysis Summary, Bank Loan Request Sheet, Loan Application Review Form, Loan Calculator, Pledge of Shares of Stock, General Continuing Guaranty, Due Diligence Checklist, Promissory Notes, Investment Analysis Summary, Term sheet for potential investment and much more. 51 Documents to help you obtain funding.

Online Startup Documents. Key documents to establish your online presence. Includes: Advertising and Marketing Online documents, Confidentiality Agreements, Content and Copyright Agreements, Hosting Agreements, Software and License Agreements, Website Development Agreements, Website Notices and Checklists and much more. 72 Documents in total to help you online.

Finance and Accounting Documents. Vital documents for your finance and accounting business needs. Covers: Banking, Bookkeeping, Buying and Selling of Shares, Financial Statements, Government Grant Programs, Insurance, Investments, Investors Relations, Invoices and Billing, Loans and Borrowing, Raising Capital and much more. 169 Documents in total to help with your business finances and accounting.

Employment and HR Documents. Key documents you need as you grow your venture with employees. Covers: Compensation and Benefits, Contractors and Consultants, Employee Records, Employee Reference Letters, Firing and Termination, Hiring Employees, Insurance, Managing and Motivating Employees, Policies and Documentation and much more. 267 Documents in total to help manage your workforce.

Sales and Marketing Documents. Crucial documents as you grow your venture with marketing and sales. Covers: Addressing Complaints, Customer Relations, Market Analysis, Purchase orders and price quotes, Sales and Marketing Management, Sales Agreements and Contracts, Sales letters and much more. 142 Documents in total to help grow your venture.

Advertising and Marketing Online Documents. Documents to get your name and brand online effectively. Includes: Affiliate Program Agreement, Agreement for Internet advertising services, Co-branding agreement terms and provisions checklist, Co-branding agreement, Free linking agreement, Press release template, Website Cross Sponsorship Agreement, Website Linking Agreement. 8 Online Marketing Documents to help develop your online presence.

Business Operational Plan, Employee Handbook, and Policies and Procedures Templates

Show your investor that you are ready to launch by completing these vital foundational documents prior to starting. They include:

Operational plan template for you to describe your business’s mission and operations, including information on your strategic content, company objectives, key performance indicators, key assumptions and risks, goals, and more.

Employee handbook template to create for your current or future employees explaining your policies and what you expect from them and what they should expect from you.

Policies and procedures template (an addition to your employee handbook) to communicate the culture of your business, your standards on employment, schedules, compensation, benefits, hiring policies, and other workplace policies to protect not just your business but also your employees.

*These are templates for you to complete as operations and employee requirements vary per business. Please view the sample pages.

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The best part about our plans is that the TIME-CONSUMING parts are DONE for YOU.

Our Hybrid Fusion Business Plan Templates save you time as most portions are already completed for you, including the general narrative, market research and format are already researched and written for the Used Car Dealer industry.

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Here are just a few reasons why our Honest Business Plan Template is the best solution to begin planning your venture:

• Formatted layout for investor and lender use.
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Click here for sample pages of this Used Car Dealer business plan template.

But we don’t want to sell you on EASY.

We want to make sure you obtain a researched market-specific business plan template you are able to build a realistic and truly investor-friendly business plan upon.

Real investors and lenders see 3 to 15 business plans a day.

With the big “Corporate” business plan template companies luring you in with an “Easy” business plan those very lenders see right through them.

With our plan templates, you will have something extensive, unique as well as researched to set you apart from the “Corporate” generic business fill-in-the-blank plan templates.

Know exactly what you will be receiving by viewing our sample pages for this business plan here.

Do it yourself and not only save but learn more about your business as well.

• Each complete plan takes us about 160 to 200 hours to research , write and create and is written in a way to make it easy to understand yet investor friendly. A professional business plan writer would charge a minimum of $650 to create a unique business plan of our length.
• This is the viable solution you have been looking for. A comprehensive template with full narrative specifically for your industry. Our business plans are investor friendly, and offered at a fraction of the cost of a professional business plan writer.
• We stand behind our quality. Our plans are in-depth and researched. If you are able to find a more researched, referenced, comprehensive, Used Car Dealer business template for the Used Car Dealer industry for a lower price we will refund your money.
• Don’t believe the MYTH of “Fill in the blanks” business plan templates. Each venture is unique as is each market. If someone promises you a “fill-in-the-blanks” template or automated way to create your business plan then you are effectively getting a generic plan. Our hybrid business plan offered here is researched written and formatted specifically for the Used Car Dealer industry.
• Before purchasing, please understand the usage of this document (Yes, you will have to put in some work)  we are honest about what we offer and provide screenshots of the documents you will be receiving so there is no misunderstanding.

A customized or turn-key document from a reputable professional business plan writer starts at $950 and a cost upwards of $5,500 or more (A Google search will show you this).

We are attempting to help you get started on a budget hence we are providing our extensive hybrid fusion business plan documents as a starting point for you to build your plan upon.

30-DAY MONEY-BACK GUARANTEE.

Like any business, there are risks. I am so confident that this is the most comprehensive Used Car Dealer business offering out there that if you are able to find a more comprehensive Used Car Dealer business plan package that includes a 35+ page business plan template and matching Excel worksheet for a lower price, I will refund your money. Click here for terms and conditions.

*PLEASE NOTE THAT THIS PRODUCT IS NOT A TURN-KEY SOLUTION, BUT AN EDITABLE TEMPLATE THAT IS MEANT TO SERVE AS A FOUNDATION/BASIS/OUTLINE ON WHICH YOU CAN DEVELOP YOUR OWN PROFESSIONAL USED CAR DEALER BUSINESS PLAN WITH SOME EFFORT.

THE BEST TIME IS NOW

There is never a better time than the present to start your used car dealer business as the demand for affordable transportation continues to rise, and consumers seek reliable options at lower prices. The resources we provide will help jump-start you. However, in the end, only you can choose to make a difference in your life.

*This is a Business Plan Template/Outline in Unlocked and Editable Microsoft Office and should only be used as a starting point/foundation to write your own plan. You will need to edit it for your needs.

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Used Car Dealership Business Plan [Sample Template]

By: Author Tony Martins Ajaero

Home » Business ideas » Automotive Industry » Car Dealership

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

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

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

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

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

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

A Sample Used Car Dealership Business Plan Template

1. Industry Overview

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

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

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

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

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

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

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

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

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

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

2. Executive Summary

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

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

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

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

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

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

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

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

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

3. Our Products and Services

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

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

4. Our Mission and Vision Statement

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

Our Business Structure

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

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

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

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

Sales and Marketing Manager

Information Technologist

• Accountants/Cashiers
• Sales Agents/Customer Services Executive

5. Job Roles and Responsibilities

Chief Executive Officer – CEO:

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

Admin and HR Manager

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

Garage Manager:

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

Accountant/Cashier:

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

Client Service Executive

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

6. SWOT Analysis

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

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

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

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

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

• Opportunities:

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

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

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

7. MARKET ANALYSIS

• Market Trends

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

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

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

8. Our Target Market

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

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

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

• Middle Class Families
• Low Earners

Our Competitive Advantage

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

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

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

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

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

9. SALES AND MARKETING STRATEGY

• Sources of Income

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

10. Sales Forecast

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

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

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

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

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

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

• Marketing Strategy and Sales Strategy

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

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

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

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

11. Publicity and Advertising Strategy

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

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

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

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

12. Our Pricing Strategy

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

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

• Payment Options

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

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

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

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

13. Startup Expenditure (Budget)

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

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

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

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

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

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

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

These are the areas we intend generating our startup capital;

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

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

14. Sustainability and Expansion Strategy

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

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

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

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

Check List/Milestone

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

• Sample Business Plans
• Retail, Consumers & E-commerce

Car Dealership Business Plan

A car dealership is a company that sells new or used vehicles to the general public under the terms of a dealership agreement with a carmaker or its sales subsidiary. Car dealerships are rewarding because they are connected to both the wholesale and retail markets.

Are you looking to start writing a business plan for your car dealership business? Creating a business plan is essential to starting, growing, and securing funding for your business. We have prepared a car dealership business plan template for you to help in start writing yours.

Free Business Plan Template

Download our free car dealership business plan template now and pave the way to success. Let’s turn your vision into an actionable strategy!

• Fill in the blanks – Outline
• Financial Tables

How to Write a Car Dealership Business Plan?

Writing a car dealership business plan is a crucial step toward the success of your business. Here are the key steps to consider when writing a business plan:

1. Executive Summary

An executive summary is the first section of the business plan intended to provide an overview of the whole business plan. Generally, it is written after the entire business plan is ready. Here are some components to add to your summary:

• Start with a brief introduction: Start your executive summary by introducing your idea behind starting a car dealership business and explaining what it does.
• Market opportunity: Describe the target market in brief, and explain the demographics, geographic location, and psychographic attributes of your customer. Explain how your car dealership business meets its needs. Clearly describe the market that your business will serve.
• Mention your services: Briefly describe the services that a client can expect from your business like new and used cars, maintenance and repairs of the car, car rental services, etc.
• Management team: Name all the key members of your management team with their duties, responsibilities, and qualifications
• Financial highlights: Provide a summary of your financial projections for the company’s initial years of operation. Include any capital or investment requirements, startup costs, projected revenues, and profits.
• Call to action: After giving a brief about your business plan, end your summary with a call to action, for example; inviting potential investors or readers to the next meeting if they are interested in your business.

Ensure you keep your executive summary concise and clear, use simple language, and avoid jargon.

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2. Business Overview

Depending on what details of your business are important, you’ll need different elements in your business overview. Still, there are some foundational elements like business name, legal structure, location, history, and mission statement that every business overview should include:

• The name of the car dealership business and the concept behind it: new car dealership, used car dealership, small car dealership, luxury car dealership, private seller, online retailer, or something else.
• Company structure of your car dealership business whether it is a sole proprietorship, LLC, partnership firm, or others.
• Location of your car dealership and the reason why you selected that place.
• Ownership: Describe the owners of your dealership business and mention their roles in running it. Whose shares in the corporation are they, and how each owner helps in the business?
• Mission statement: Add a mission statement that sums up the objectives and core principles of your business. This statement needs to be memorable, clear, and brief.
• Business history: If you are already running this business, including an outline of the business’s history and how it came to be in its current position. If you can, add some personality and intriguing details, especially if you got any achievements or recognitions till now for your incredible services.
• Future goals: It’s crucial to convey your aspirations and your vision. Include the vision of where you see your business in the near future and if you have any plans of opening a new franchise of your business in the same city in the future.

This section should provide an in-depth understanding of your car dealership business. Also, the business overview section should be engaging and precise.

3. Market Analysis

Market analysis provides a clear understanding of the market in which your car dealership business will run along with the target market, competitors, and growth opportunities. Your market analysis should contain the following essential components:

• Target market: Identify your target market and define your ideal customer. Know more about your customers and which services or cars they prefer.
• Market size and growth potential: Provide an overview of the industry. It will include market size, trends, growth potential, and regulatory considerations. Highlight the competitive edge and how your car dealership business is different from the rest.
• Competitive analysis: Identify and analyze all other dealerships in the local market, including direct and indirect competitors. Evaluate their strengths and weaknesses, and explain how your business can offer qualitative services.
• Market trends: Analyze current and emerging trends in your industry, such as changes in technology or customer preference as in the shift towards automatic cars. Explain how your business will cope with all the trends.
• Regulatory environment: Describe any regulations or licensing requirements that affect the car dealership, such as insurance, dealer’s license, zoning permits, or safety codes.

Some additional tips for writing the market analysis section of your business plan:

• Use a variety of sources to gather data, including industry reports, market research studies, and surveys.
• Be specific and provide detailed information wherever possible.
• Include charts and graphs to help illustrate your key points.
• Keep your target audience in mind while writing the business plan.

4. Products And Services

The product and services section of a car dealership business plan should describe the specific services and products that will be offered to customers. To write this section should include the following:

• Create a list of the services that your car dealership will offer, which may luxury cars, new cars, used cars, maintenance, repairs, etc.
• Describe each product and service: For each service, provide a detailed description of what it entails, and the qualifications of the professionals who will provide the service.
• Emphasize safety and quality: In all descriptions of services and products, emphasize the importance of safety and quality. Explain how your car dealership will ensure that all services and products are delivered with the highest standards of safety and efficacy.

Overall, a business plan’s product and services section should be detailed, informative, and customer-focused. By providing a clear and compelling description of your offerings, you can help potential investors and readers understand the value of your business.

5. Sales And Marketing Strategies

Writing the sales and marketing strategies section means a list of strategies you will use to attract and retain your clients. Here are some key elements to include in your sales & marketing plan:

• Develop your unique selling proposition (USP): Clearly define your unique selling proposition – it might be your pricing, the range of vehicles you offer, after-sales service, digital experience, specialization in vintage, hybrid, or sports cars, or any other aspect that distinguishes you from the competition.
• Determine your pricing strategy: Develop a pricing strategy that is competitive and affordable, yet profitable. Consider offering promotions, discounts, or packages to attract new customers.
• Marketing strategies: Develop a marketing strategy that includes a mix of online and offline marketing tactics. Consider social media, email marketing, content marketing, brochures, print marketing, and affiliating with online car buying/selling options.
• Sales strategies: Mention your sales strategy as in – offer incentives and promotions to attract new customers, or partner with other businesses to establish referral programs that can help you generate more business. Consider offering incentives for referrals or special discounts for partnerships.

Overall, the sales and marketing strategies section of your business plan should outline your plans to attract and retain customers and generate revenue. Be specific, realistic, and data-driven in your approach, and be prepared to adjust your strategies based on feedback and results.

6. Operations Plan

When writing the operations plan section, it’s important to consider the various aspects of your business processes and procedures involved in operating a business. Here are the components to include in an operations plan:

• Hiring plan: Tell the staffing requirements of your car dealership, including the number of employees needed, their qualifications, and the duties they will perform. Also mention the perks you will provide to your employees.
• Operational process: Outline the processes and procedures that you will use to run your car dealership business. It includes the scheduling of appointments, meeting with clients, and everything else.
• Inventory management: Provide details on how frequently new vehicles will be purchased, how the inventory will be cycled, and how the dealership will make sure it has a variety of automobiles to suit the demands of its clients in your inventory management plan.

By including these key elements in your operations plan section, you can create a comprehensive plan that outlines how you will run your car dealership business.

7. Management Team

The management team section provides an overview of the individuals responsible for running the car dealership business. This section should provide a detailed description of the experience and qualifications of each manager, as well as their responsibilities and roles.

• Key managers: Describe the key members of your management team, their roles, and their responsibilities. It should include the owners, and senior management including their education, professional background, and any relevant experience in the industry.
• Organizational structure: Describe the organizational structure of the management team, including reporting lines and how decisions will be made.
• Compensation plan: Describe your compensation plan for the management team and staff, including salaries, bonuses, and other benefits.
• Board of advisors: If you have a board of advisors for your business, then mention them along with their roles and experience.

Describe the key personnel of your company and highlight why your business has the fittest team.

8. Financial Plan

When writing the financial plan section of a business plan, it’s important to provide a comprehensive overview of your financial projections for the first few years of your business.

• Profit & loss statement: Create a projected profit & loss statement that describes the expected revenue, cost of products sold, and operational costs. Your business’s anticipated net profit or loss should be computed and included.
• Cash flow statement: Estimate your cash inflows and outflows for the first few years of operation. It should include cash receipts from clients, payments to vendors, loan payments, and any other cash inflows and outflows.
• Balance sheet: Prepare a projected balance sheet, which shows the assets, liabilities, and equity.
• Break-even point: Determine the point at which your car dealership business will break even, or generate enough revenue to cover its operating costs. This will help you understand how much revenue you need to generate to make a profit.
• Financing needs: Estimate how much financing you will need to start and operate your car dealership business. It should include both short-term and long-term financing needs, such as loans or investment capital.

Remember to be realistic with your financial projections, and to provide supporting evidence for all of your estimates.

9. Appendix

When writing the appendix section, you should include any additional information that supports the main content of your plan. This may include financial statements, market research data, legal documents, and other relevant information.

• Include a table of contents for the appendix section to make it easy for readers to find specific information.
• Include financial statements such as income statements, balance sheets, and cash flow statements. These should be up-to-date and show your financial projections for at least the first three years of your business.
• Provide market research data, such as statistics on the size of the industry, consumer demographics, and trends in the industry.
• Include any legal documents such as permits, licenses, and contracts.
• Provide any additional documentation related to your business plans, such as marketing materials, product brochures, and operational procedures.
• Use clear headings and labels for each section of the appendix so that readers can easily find the necessary information.

Remember, the appendix section of your car dealership business should only include relevant and important information that supports the main content of your plan.

The Quickest Way to turn a Business Idea into a Business Plan

Fill-in-the-blanks and automatic financials make it easy.

This car dealership business plan sample will provide an idea for writing a successful business plan, including all the essential components of your business.

After this, if you are still confused about how to write an investment-ready business plan to impress your audience, then download our car dealership business plan pdf .

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Frequently asked questions, why do you need a car dealership business plan.

A business plan is essential for anyone looking to start or run a successful car dealership. It helps to get clarity in your business, secures funding, and identifies potential challenges while starting and growing your business.

Overall, a well-written plan can help you make informed decisions, which can contribute to the long-term success of your car dealership business.

How to get funding for your car dealership business?

There are several ways to get funding for your car dealership business, but one of the most efficient and speedy funding options is self-funding. Other options for funding are:

• Bank loan – You may apply for a loan in government or private banks.
• Small Business Administration (SBA) loan – SBA loans and schemes are available at affordable interest rates, so check the eligibility criteria before applying for it.
• Crowdfunding – The process of supporting a project or business by getting a lot of people to invest in your car dealership, usually online.
• Angel investors – Getting funds from angel investors is one of the most sought options for startups.

Apart from all these options, there are small business grants available, check for the same in your location and you can apply for it.

Where to find business plan writers for your car dealership business?

There are many business plan writers available, but no one knows your business and idea better than you, so we recommend you write your car dealership business plan and outline your vision as you have in your mind.

What is the easiest way to write your car dealership business plan?

A lot of research is necessary for writing a business plan, but you can write your plan most efficiently with the help of any car dealership business plan example and edit it as per your need. You can also quickly finish your plan in just a few hours or less with the help of our business plan software.

About the Author

Upmetrics Team

Upmetrics is the #1 business planning software that helps entrepreneurs and business owners create investment-ready business plans using AI. We regularly share business planning insights on our blog. Check out the Upmetrics blog for such interesting reads. Read more

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Car Dealership Business Plan Template [Updated 2024]

Car Dealership Business Plan

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

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

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

Sample Business Plan For New Car Dealerships

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

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

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

Car Dealership Business Plan Template

Written by Dave Lavinsky

Car Dealership Business Plan

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

We have helped over 5,000 entrepreneurs and business owners create business plans and many have used them to start or grow their Car Dealerships.

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

Executive Summary

Business overview.

Wilson Toyota, located in Albuquerque, New Mexico, is a brand-new Toyota dealership that sells, leases, and services new and used Toyota vehicles. Our dealership will feature all the models that Toyota makes, from budget models to hybrids. In addition to our large inventory, we also offer in-house financing and service and repairs for all Toyota owners. With our competitive prices and world-class customer service, we plan to be the #1 Toyota dealer in the Albuquerque area in the next five years.

Wilson Toyota is led by Dylan Wilson who has extensive sales experience, including selling used cars for a previous employer. His experience and knowledge make him the perfect candidate to run a Toyota franchise.

Product Offering

Wilson Toyota will maintain an inventory of new and used Toyota vehicles. We will sell all Toyota models, including hybrid and electric vehicles. Some of the models we plan to sell include:

Wilson Toyota will also have a service center to help Toyota owners with routine maintenance, repairs, recalls, and part replacements. Additionally, Wilson Toyota will offer financing and insurance options for customers with all credit scores. Customers will find financing options at Wilson Toyota that they will not find at other area dealerships.

Customer Focus

Wilson Toyota will primarily serve the residents in the Albuquerque area. The city is home to thousands of families, professionals, and businesses in need of vehicles. We will offer budget vehicles to those who only need a basic model as well as luxury vehicles to those who have the disposable income to purchase something high-end.

Management Team

Wilson Toyota is led by Dylan Wilson who has been in sales for 20 years. Dylan Wilson has sold products in numerous industries, with his most recent experience being at a competitor dealership. Dylan Wilson is a car aficionado. He knows everything about the most popular models and how to find the perfect vehicle for every customer. His experience and knowledge make him the perfect candidate to run a Toyota franchise.

While Dylan Wilson has never run a dealership himself, he has worked in the industry for years. As such Dylan Wilson 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

Wilson Toyota will be able to achieve success by offering the following competitive advantages:

• Location: Wilson Toyota’s location is near the center of town, giving us access to thousands of residents, local office workers, and passersby shopping in the city.
• Great service at an affordable price: The complete array of auto services offered by Wilson Toyota is comprehensive, and Wilson Toyota will offer these services at a much more affordable price.
• 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, Dylan Wilson knows all of the local leaders, newspapers and other influencers. As such, it will be relatively easy for Wilson Toyota to build brand awareness and an initial customer base.

Financial Highlights

Wilson Toyota is currently seeking $10 million to launch. Specifically, these funds will be used as follows:

• Lot design/build: $100,000
• Franchise fee: $400,000
• Inventory: $9 million
• Office equipment, supplies, and materials: $50,000
• Three months of overhead expenses (payroll, rent, utilities): $250,000
• Marketing costs: $100,000
• Working capital: $100,000

Company Overview

Who is wilson toyota, wilson toyota’s history.

Dylan Wilson incorporated Wilson Toyota as an S-Corporation in February 2023. The business is currently being run out of Dylan’s private office, but once the build-out on Wilson Toyota’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
• Hired an architect to design the showroom
• Determined equipment and inventory requirements
• Begun recruiting key employees

Wilson Toyota’s Services

Industry analysis.

Wilson Toyota competes against other new and used car dealerships, as well as online-only auto dealers and private consumer sales. The major trend in auto sales is that more people are purchasing vehicles online rather than through a salesperson. To meet this challenge, Wilson Toyota will offer flexible online purchasing through our website.

Even though the industry is changing, it is still growing and remaining profitable. According to Mordor Intelligence, the industry is expected to grow at a CAGR of 4% over the next five years. Even with the increasing demand for public transportation and cleaner forms of transportation, vehicles are still an essential purchase for most Americans.

According to a report by the National Automobile Dealers Association, the car dealership industry is a fragmented one, as the majority of operators are single-location businesses and employ fewer than 20 people. The market is estimated to grow to over $1 trillion in five years. Since there are no truly dominant competitors, barriers to entry are not as high as in many other industries, and a start-up can expect to have success in this growing market, Wilson Toyota 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 Wilson Toyota.

Customer Analysis

Demographic profile of target market.

Wilson Toyota will serve the residents of Albuquerque, New Mexico and the immediately surrounding areas as well as those who work in the area.

The area we serve is populated mostly by middle-class Millennials; as a result, they have the means to pay for higher-quality vehicles. Further, many are looking to transition to hybrid or electric vehicles, and middle-class earners are the primary demographic for these types of vehicles.

Customer Segmentation

Wilson Toyota will primarily target the following customer profiles:

• Professionals

Competitive Analysis

Direct and indirect competitors.

Wilson Toyota will face competition from other companies with similar business profiles. A description of each competitor company is below.

Gibson Toyota

Gibson Toyota’s goal is to give its customers the best possible experience online and at its physical store. The professional and fun-loving sales team is committed to its customers’ complete satisfaction. Gibson Toyota prides itself on building relationships with its customers throughout all phases of the automotive journey whether it’s sales, service, or parts. Gibson Toyota provides auto sales and services for both new Toyotas and used cars.

While we expect that Gibson Toyota will continue to thrive. But since it is located in the next city, we expect more and more customers will frequent Wilson Toyota based on proximity and competitive prices we offer.

Johnson Auto

Johnson Auto is an independent used car dealership specializing in certified pre-owned vehicles. The team believes that the car-buying process should be as hassle-free as possible. The team takes pride in serving its customers to the fullest. The service center is one of the best in the area, and the team strives to get its customers back on the road as soon as possible. Johnson Auto maintains a convenient online parts inventory, and if a customer can’t find what they want there, the team will help them find what they are looking for. At Johnson Auto, the team is willing to answer each and every question a customer might have during the car buying process.

Wilson Toyota has several advantages over Johnson Auto, in that it specializes in selling and servicing one make of vehicle. Wilson Toyota will provide these specialized services at an affordable price point.

Foster’s Chrysler, Jeep, Dodge, Ram

Foster’s Chrysler, Jeep, Dodge, and Ram offers both new and used inventory, as well as providing service for these makes. The dealership also retails auto parts and accessories. This location also participates in Toyota Rent a Car, in which new Toyotas are rented by the day. Camrys rent for $48.50 per day and Corollas rent for $37.80 per day.

Foster’s Chrysler, Jeep, Dodge, Ram offers some services 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 toward a rental clientele, we expect to draw buyers who seek the same level of support.

Competitive Advantage

Wilson Toyota will be able to offer the following advantages over its competition:

• Relationships: Having lived in the community for 25 years, Dylan Wilson knows all of the local leaders, newspapers, and other influencers. As such, it will be relatively easy for Wilson Toyota to build brand awareness and an initial customer base.

Marketing Plan

Brand & value proposition.

Wilson Toyota will offer a unique value proposition to its clientele:

• Convenient location
• Large inventory of new and used vehicles
• Highly trained specialists
• Significant personal attention
• Moderate price point
• Comfortable, customer-focused environment

Promotions Strategy

The promotions strategy for Wilson Toyota is as follows:

Commute Advertising

We will drive attention toward Wilson Toyota by leasing a billboard alongside multiple highways. Advertising on heavily traveled commute routes is an opportunity to alert large numbers of working individuals with disposable income of our opening.

Website & SEO Marketing

The company will utilize the website and SEO to attract new customers. The website will be easy to navigate and provide all the information and pictures needed to show our dealership and the vehicles we sell. The SEO strategy will also be managed to ensure that anyone searching for new Toyota vehicles will see our company listed at the top of the Bing or Google search engines.

Social Media Marketing

Social media is one of the most cost-effective and practical marketing methods for improving brand visibility. The company will use social media to develop engaging content, such as educational content about vehicles and customer reviews that will increase audience awareness and loyalty. Engaging with prospective clients and business partners on social media platforms like Facebook, Instagram, Twitter, and LinkedIn will also help understand changing customer needs.

Advertisement

Advertisements in print publications like newspapers, magazines, etc., are an excellent way for businesses to connect with their audience. The company will advertise its brand in popular magazines and news dailies. Obtaining relevant placements in industry magazines and journals will also help in increasing brand visibility.

Wilson Toyota’s pricing will be competitive so customers feel they receive great value when shopping for a new car. The customer can expect to receive quality services and personalized attention when patronizing the dealership.

Operations Plan

The following will be the operations plan for Wilson Toyota.

Operation Functions:

• Dylan Wilson will be the Owner of the company. He will oversee all staff and manage the general operations of the company. He will also partake in customer service and sales until he has employed a full staff of sales professionals. Dylan has spent the past year recruiting the following staff:
• Janie Wilson will serve as the dealership’s Administrative Assistant. She will assist Dylan with all the operational, executive, and administrative aspects of the business. She will also manage the phones until Dylan hires a receptionist.
• Joe Smith will be the Services Manager. He will oversee all the operations of the services department.
• Maria Kenway will be the Sales Manager. She will oversee all the sales staff and help out with customer service, managing sales, and the appraisal process for used vehicles.
• Dylan will hire a full staff of service technicians and sales professionals to help with the service, sales, and customer services functions.

Milestones:

Wilson Toyota will have the following milestones completed in the next six months.

• 3/202X Finalize lease agreement
• 4/202X Design and build out Wilson Toyota
• 5/202X Hire and train initial staff
• 6/202X Kickoff of promotional campaign
• 7/202X Launch Wilson Toyota
• 8/202X Reach break-even

Financial Plan

Key revenue & costs.

Wilson Toyota’s revenues will come primarily from the sale of vehicles and secondarily from the sales of parts/accessories and auto services.

Labor expenses are a major cost driver for dealerships with service departments. Service technicians are salaried; therefore, attractive compensation packages are necessary to maintain qualified staff. Furthermore, large commissions help the dealership keep the best salespeople on staff. Other major cost drivers for the company include the lease, franchise fees, inventory and parts, and marketing expenses.

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 in order to pay off the startup business loan.

• Average annual franchise fees: $100,000
• Annual lease costs: $100,000

Financial Projections

Income statement.

Balance Sheet

Cash Flow Statement

Car Dealership Business Plan FAQs

What is a car dealership business plan.

A car dealership business plan is a plan to start and/or grow your 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 Car Dealership business plan using our Car Dealership Business Plan Template here .

What are the Main Types of Car Dealership Businesses?

There are a number of different kinds of car dealership businesses , some examples include: New Car Dealers, Used Car Dealership, and Online Car Dealership.

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

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

This is true for a used car dealership business plan as well.

What are the Steps To Start a Car Dealership Business?

Starting a 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 Car Dealership Business Plan - The first step in starting a business is to create a detailed 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 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 car dealership business is in compliance with local laws.

3. Register Your Car Dealership Business - Once you have chosen a legal structure, the next step is to register your 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 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 Car Dealership Equipment & Supplies - In order to start your 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 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 car dealership business:

• How to Start a Car Dealership Business

Where Can I Get a Car Dealership Business Plan PDF?

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

Other Helpful Business Plan Articles

Car Wash Business Plan Template Franchise Business Plan Template Car Detailing Business Plan Template

Car Dealership Business Plan Template

Launch your car dealership venture with our exhaustive and user-friendly template crafted for ambitious entrepreneurs. From market scrutiny to financial forecasting, our template covers all the requisite elements for creating a sturdy car dealership business plan. Download it today and steer towards automotive business success.

Download the template today!

Features of the car dealership business plan template.

• Market Analysis : Undertake a deep examination of the automotive market, pinpoint target demographics, and evaluate customer needs. Our template provides a methodical approach to market analysis tailored for the car dealership industry.
• Business Model: Establish your car dealership's distinct value proposition, select appropriate business strategies, and pinpoint your target market. Our template provides direction and insights to assist you in choosing the most fitting business model for your dealership.
• Financial Projections : Project your revenue sources, expenses, and profitability with our thorough financial forecasting section. This aids you in making well-informed decisions and setting achievable objectives for your dealership's financial growth.
• Marketing Strategy: Formulate a marketing plan that efficiently advertises your dealership and attracts devoted customers. Our template guides you in constructing a strategic marketing approach, including brand positioning, advertising campaigns, and customer engagement tactics.

Benefits of Using Our Template

• Time and Effort Saving: Make use of our pre-designed template to save valuable time. Concentrate on perfecting your dealership concept and business strategy rather than creating a plan from ground zero.
• Clarity and Direction : Our template offers a lucid route, ensuring you tackle all crucial aspects of your car dealership business plan. Keep your focus on your objectives and avoid missing critical factors of your dealership's success.
• Heightened Chances of Success: A comprehensive and well-structured business plan elevates your odds of success in the competitive car dealership industry. Our template provides the necessary resources to professionally present your dealership concept and appeal to potential investors or lenders.

Car Dealership Business Plan Frequently Asked Questions

Q: why do i need a car dealership business plan.

A: A car dealership business plan is vital as it assists in market evaluation, setting business goals, and forming a strategic method for success in the industry. It functions as a guide for your dealership, informing decision-making and drawing potential investors or lenders.

Q: What are the key parts of a car dealership business plan?

A: A car dealership business plan should encompass a market analysis, business model, financial forecasts, marketing strategy, and operations plan. These elements allow you to understand your target audience, gauge profitability, plan your finances, and create impactful strategies for promoting and expanding your dealership.

Q: How can a car dealership business plan help attract funding?

A: A thoroughly crafted car dealership business plan convinces investors or lenders that you possess an extensive understanding of the industry, a viable business model, and a strategy for profit. Financial forecasts play a pivotal role in illustrating the potential return on investment. Sharing your business plan with potential financiers improves your chances of obtaining the necessary capital for your dealership.

We Know a Good Business Plan When we See One

Collectively, our team has reviewed thousands of business plans and has nearly 20 years of experience making SBA loans. We've also helped more than 50,000 businesses create financial projections across many industries and geographies.

Adam served as Executive Director for a SBA microlender in Indiana for over 10 years helping businesses and reviewing thousands of business plans.

Grace has built hundreds of custom financial models for businesses as well as our projection templates which are used by thousands of businesses every year.

Kyle served as an SBA loan officer for 7 years working directly with startups and business owners to review their business plans, projections, and prepare their loan package.

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How to Write Used Car Dealership Business Plan? Guide & Template

In the fast-paced world of the automotive industry, venturing into a used car dealership business can be a lucrative endeavor. However, success in this competitive market requires more than just a passion for cars; it demands a well-thought-out business plan. This article explores the essentials of a Used Car Dealership Business Plan, providing insights into why it’s crucial, funding options, and a step-by-step guide to crafting an effective plan.

What is a Used Car Dealership Business Plan?

A Used Car Dealership Business Plan is a comprehensive document outlining the details of your business, its objectives, strategies, and financial forecasts. It serves as a roadmap for your enterprise, guiding decision-making and providing a clear vision for the future. This document is not just a formality; it is a strategic tool that can significantly impact the success of your venture.

Why do you need a business plan for a Used Car Dealership?

• Roadmap for Success:

A business plan acts as a roadmap, defining your business goals and the path to achieve them. It ensures that your efforts are aligned with a clear vision, preventing aimless and potentially wasteful activities.

2. Attracting Investors:

Investors are more likely to support a business with a well-structured plan. Whether seeking a bank loan or attracting individual investors, a comprehensive business plan instills confidence in financial stakeholders.

3. Risk Mitigation:

Identifying potential risks and challenges in advance allows for proactive strategies to mitigate them. This foresight is crucial for long-term success in the volatile used car market.

4. Operational Guidance:

A detailed plan provides a guide for day-to-day operations. From inventory management to marketing strategies, having a plan in place streamlines decision-making and ensures consistency in operations.

Source of Funding for Used Car Dealership Business

Starting a used car dealership requires a significant financial investment. Identifying the right sources of funding is critical for a smooth launch and sustained growth. Here are some common funding options:

• Personal Savings:

Using personal savings is a straightforward way to fund your venture. It avoids accumulating debt and gives you full control over the business.

2. Bank Loans:

Traditional bank loans are a common choice for entrepreneurs. Ensure your business plan is robust when approaching banks for loans, as they will scrutinize it thoroughly.

3. Investors:

Pitching your business to investors can bring in substantial capital. Be prepared to showcase the potential for profitability and a solid plan for return on investment.

4. Government Grants and Programs:

Many governments offer grants and programs to support small businesses. Research local opportunities and ensure your business aligns with their criteria.

How to Write a Used Car Dealership Business Plan?

Crafting a compelling business plan involves several key elements. Here’s a step-by-step guide:

• Executive Summary:

Summarize your business, its mission, vision, and key objectives. Provide a snapshot of your financial projections and funding requirements.

2. Business Description:

Detail the nature of your used car dealership. Include information on your target market, competition, and unique selling propositions.

3. Market Analysis:

Analyze the used car market in your area. Identify your competitors, target demographic, and market trends. This section should demonstrate a deep understanding of your industry.

4. Organization and Management:

Outline the structure of your business, including key personnel and their roles. Highlight any industry experience and expertise within your team.

5. Products and Services:

Provide a comprehensive list of the cars and services you offer. Include pricing strategies, warranties, and any additional value-added services.

6. Sales and Marketing:

Detail your marketing strategy to attract customers. Utilize online and offline channels, and consider partnerships with local businesses to expand your reach.

7. Funding Request:

Clearly outline your funding requirements. Specify how the funds will be utilized and provide a detailed repayment plan for loans.

8. Financial Projections:

Include detailed financial forecasts, covering at least three to five years. This should include income statements, balance sheets, and cash flow projections.

9. Appendix:

Attach any supporting documents, such as resumes of key team members, lease agreements, or market research data.

Advantages of starting a Used Car Dealership Business

Starting a used car dealership business offers several advantages, making it an attractive venture for aspiring entrepreneurs:

• Steady Demand:

The demand for used cars remains relatively stable, providing a consistent stream of potential customers.

2. Profit Margins:

Compared to selling new cars, the profit margins on used cars are often higher. This can contribute to a more financially rewarding business.

3. Diverse Inventory:

With a variety of makes, models, and price points, you can cater to a broad customer base and adapt to changing market trends.

4. Repeat Business:

Satisfactory customer experiences can lead to repeat business and referrals. Building a positive reputation is crucial in the competitive used car market.

5. Adaptability:

A well-planned dealership can adapt to market shifts, such as fluctuations in demand for specific types of vehicles or changes in consumer preferences.

In the dynamic world of the used car market, success hinges on strategic planning and execution. A well-crafted Used Car Dealership Business Plan serves as the foundation for a thriving venture. From attracting investors to providing operational guidance, a comprehensive plan is indispensable. Consider the advantages of starting a used car dealership, explore funding options, and take the time to meticulously draft your business plan. In doing so, you position your venture for sustained success in this competitive industry.

Used Car Dealership Business Plan FAQs

Is second hand car business profitable?

Yes, buying and reselling used cars can be profitable by sourcing inventory at wholesale auction prices, detailing vehicles, marketing online and in print, and pricing competitively.

How profitable is a car dealership business?

New car dealers average about 2–3% net profit margin on sales while used car dealers see 5–8% margins. Profits come from sales, financing, warranties, and service.

How do I write a business plan for a car dealer?

A plan for a car dealership should detail your inventory sourcing, lot financing and display, target market, projected sales and profit margins, staffing, licensing needs, and marketing approach.

What is the most profitable part of car dealership?

The service department accounts for most dealership net income with higher margins on parts, labor and warranties. High volume vehicle sales are lower margin but drive lucrative service business.

Written by Ivan Smith

Hello, I'm Ivan Smith, a graduate with a Bachelor of Business Administration in Marketing. Currently, I'm actively engaged in practicing business plan writing.

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Car Dealership Business Plan Template

Document description.

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

Sample of our car dealership business plan template:

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

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Opening a car dealership can be a risky venture without effective planning. It requires a large amount of overhead costs to acquire inventory, insurance coverage, pay structure for salesmen among other things. You’ll likely find yourself looking to apply for a loan to get your business off the ground, which can be difficult to do without a thorough business plan to use in your pitch.

Luckily we have sample business plans to help you get started and successfully launch your new car dealership.

The quickest way to turn a business idea into a business plan

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No thanks, I prefer writing 40-page documents.

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Auto Sales Business Plan

New and used car dealers can organize financial plans and predict profit and loss for their auto sales in the public and private sector with this free, printable business plan.

Sample text from Auto Sales Business Plan:

1.0 Executive Summary

[COMPANY NAME] will sell top-quality used vehicles at a competitive price. The owner and sales manager have several years of combined experience in new and used auto sales. [COMPANY NAME] will continue to develop an excellent working relationship with local dealers and auctions to bring the savings to the customer.

[COMPANY NAME] will be successful because the company offers something different; a pleasant car buying experience. [COMPANY NAME] will create a purchasing environment that caters to the customer's needs. [COMPANY NAME] is selling a professional service and an experience in car buying that will bring customers back again, as well as referring friends and family. [COMPANY NAME] estimates an optimistic gross margin over the industry average. The company will be successful because of the excellent team [COMPANY NAME] has assembled and the drive and determination of the owner.

The company's goal is to attain grant funding in the amount of $400,000 to use for expansion of the existing facility, lot improvements, upgrading the trailer on the lot, additional inventory and, in the future, the addition of new employees to assist with the increase of new sales.

1.1 Objectives

1. 100% customer satisfaction, measured through repeat customers, referrals and surveys.

2. To achieve and surpass the industry average profit margin within the first two-years.

3. To achieve a respectable net profit by year two.

1.2 Mission

[COMPANY NAME] provides a unique car buying experience to the customers in the [CITY], [STATE]. One that focuses on customer satisfaction first. [COMPANY NAME] understands that vehicle purchasing is a necessary, but sometimes unpleasant experience. The company's goal is to provide the customer with an enjoyable, honest service by satisfying individual customers practical transportation needs with a quality product.

[COMPANY NAME] also believes it is important to have quality vehicles at a low cost. The 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.

1.3 Keys to Success

To succeed in this business [COMPANY NAME] must:

• Have a team of experienced professionals.

• 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.

2.0 Company Summary

[COMPANY NAME] is an independently owned business, established in 2002 by an automotive expert, [NAME], with over 7 years of vehicle sales experience and his wife [NAME]. [COMPANY NAME] provides a unique car buying experience for customers in the [CITY], [STATE] by providing inspected, top quality, used vehicles for all types of consumers, at a competitive price. [COMPANY NAME] is conveniently located in [CITY], which is the largest city in the southwest region of the U.S. state of [STATE].

2.1 Company Ownership

[COMPANY NAME] is sole proprietorship owned by [NAME].

2.2 Company History

[COMPANY NAME] is an independently owned sole proprietor business, established in 2002 by [NAME]. [COMPANY NAME] provides a unique car buying experience for customers in the [CITY], [STATE] by providing inspected, top quality, used vehicles for all types of consumers, at a competitive price. [COMPANY NAME] is conveniently located in [CITY], which is the largest city in the southwest region of the U.S. state of [STATE].

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Sample Car Dealership Business Plan

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

Download our Ultimate Car Dealership Business Plan Template

Having a thorough business plan in place is critical for any successful car dealership venture. It will serve as the foundation for your operations, setting out the goals and objectives that will help guide your decisions and actions. A well-written business plan can give you clarity on realistic financial projections and help you secure financing from lenders or investors. A car dealership business plan example can be a great resource to draw upon when creating your own plan, making sure that all the key components are included in your document. The car dealership business plan sample below will give you an idea of what one should look like. It is not as comprehensive and successful in raising capital for your car dealership as Growthink’s Ultimate Car Dealership Business Plan Template , but it can help you write a car dealership business plan of your own.

Car Dealership Business Plan Example – DriveDream Motors

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

Welcome to DriveDream Motors, your newest destination for all automotive needs in the vibrant heart of San Diego, CA. As a beacon of quality and reliability in the local car dealership scene, we are dedicated to elevating the vehicle purchasing experience. Our extensive range includes brand-new models directly from manufacturers and pre-owned vehicles that meet our stringent quality and reliability standards. Beyond sales, we provide a comprehensive array of automotive parts and accessories, positioning us as a one-stop shop for our customers. Our strategic location in San Diego ensures convenience for anyone visiting us, making their car buying journey as smooth as possible.

Our trajectory towards becoming the leading car dealership in San Diego is paved with key success factors and notable achievements. Leveraging the vast experience of our founder, who has previously steered a dealership to success, we have a solid foundation in business strategy and customer service excellence. Our competitive edge is further sharpened by offering a superior and diverse vehicle selection, exceeding customer expectations. Since launching on January 5, 2024, we have successfully established a compelling brand identity, secured a prime location, and are continuously building towards our vision with every milestone achieved.

The Car Dealership industry in the United States, with a valuation surpassing $1 trillion, presents a lucrative opportunity for DriveDream Motors. Expected to grow at a steady CAGR of 3% in the coming years, factors such as increasing consumer disposable income and a surge in demand for vehicles lay a fertile ground for our success. Particularly, the trend towards online car shopping aligns with our strategy to invest in a robust digital presence, enabling us to cater to a broader audience and secure a competitive advantage in the San Diego market.

DriveDream Motors is committed to serving a diverse clientele in San Diego, including families in search of reliable transportation, individuals looking for an upgrade, and military personnel stationed in the area. Recognizing the city’s commitment to sustainability, we also cater to eco-conscious buyers with a selection of electric and hybrid vehicles. By tailoring our inventory and services to these key segments, we ensure a broad appeal and meet the varied needs of our community.

Our competitors, such as North Park Auto Sales, Car Czar Auto Sales, and Branco Motors, each bring their strengths to the San Diego car dealership market. However, DriveDream Motors sets itself apart by offering an unmatched selection of superior quality vehicles and a wider variety of options, catering to the diverse preferences of the San Diego community. Our commitment to excellence in customer service and our extensive range of vehicles, from eco-friendly models to luxury sports cars, places us in a unique position to provide an unparalleled shopping experience.

DriveDream Motors has crafted a comprehensive marketing strategy that spans both digital and traditional platforms. Our product and service offerings range from new and used cars to automotive parts and customization accessories, catering to all automotive needs with competitive pricing. We leverage social media, SEO, and email campaigns to engage potential customers, complemented by community events and strategic partnerships for broader reach. Our focus on exceptional customer service and an innovative referral program are key to transforming customers into brand ambassadors, ensuring our growth in the competitive San Diego market.

Our operational blueprint focuses on maintaining a streamlined inventory system, conducting daily vehicle inspections, and leveraging a robust CRM. Key milestones include securing a prime location, completing necessary legal formalities, and launching a comprehensive marketing campaign. We prioritize continuous staff training and strive for excellence in customer service to enhance the buying experience. Our goal is to achieve initial sales targets and foster continuous improvement through customer feedback, adapting to market trends to ensure long-term success.

At the helm of DriveDream Motors is Isabella Lee, our President, whose extensive experience in the automotive industry and proven leadership skills form the backbone of our operations. Isabella’s strategic vision and passion for the automotive sector are instrumental in guiding our dealership towards achieving its ambitious goals, making her an invaluable asset to our team and driving us toward lasting success in the San Diego market.

Welcome to DriveDream Motors, a new and vibrant Car Dealership dedicated to serving the wonderful community of San Diego, CA. As a local business, we recognize the gap in the market for high-quality car dealerships within the area, and we’re here to bridge that gap. Our commitment lies in providing exceptional service and a diverse selection of vehicles to cater to every taste and need.

At DriveDream Motors, our offerings span across various categories to ensure we meet our customer’s expectations. We deal in both new and used cars, providing an extensive range of options for our buyers. Additionally, we understand the importance of maintaining your vehicle, which is why we also supply automotive parts and accessories. Our goal is to be your one-stop-shop for all your automotive needs.

Located in the heart of San Diego, CA, DriveDream Motors is perfectly positioned to serve the local community and beyond. Our strategic location allows us to connect with our customers easily and provide them with the convenience they deserve.

Our edge over the competition is clear. DriveDream Motors is spearheaded by a founder with a proven track record of success in running a car dealership. This experience is invaluable to us and is a pillar of our confidence in the success of our venture. Moreover, our commitment to offering better cars and a wider variety than our competitors puts us in a unique position to meet the diverse needs of our customers.

Since our establishment on January 5, 2024, as a Limited Liability Company, DriveDream Motors has hit several milestones. We’ve crafted a logo that resonates with our brand identity, chosen a company name that reflects our mission and vision, and secured an ideal location that promises a bright future for our dealership. These accomplishments are just the beginning of our journey towards becoming the leading car dealership in San Diego, CA.

The car dealership industry in the United States is a vast and thriving market. According to recent research, the industry generated approximately $1.1 trillion in revenue in 2019. This indicates the significant size and financial importance of car dealerships within the country. Moreover, the industry employs over 1.1 million people, making it a crucial source of job opportunities and economic growth.

Market projections suggest that the car dealership industry in the United States will continue to experience steady growth in the coming years. It is expected to have a compound annual growth rate (CAGR) of 3.7% from 2020 to 2027. The increasing demand for vehicles, coupled with the rise in disposable income and favorable financing options, are some of the factors contributing to the positive market outlook.

The trends in the car dealership industry bode well for DriveDream Motors, a new car dealership serving customers in San Diego, CA. One notable trend is the growing preference for electric and hybrid vehicles. As more consumers prioritize eco-friendly transportation options, DriveDream Motors can capitalize on this trend by offering a wide range of electric and hybrid models. Additionally, the shift towards online car shopping is another opportunity for the dealership. By providing a seamless online purchasing experience and offering virtual vehicle tours, DriveDream Motors can attract tech-savvy customers who value convenience and efficiency.

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

Target Customers

DriveDream Motors will target a diverse range of customers, with a primary focus on local residents in San Diego. This segment includes both families seeking safe and reliable transportation and individuals looking for their first car or an upgrade. The dealership will tailor its inventory and services to meet the varied needs and preferences of this core demographic, ensuring a broad appeal.

Furthermore, DriveDream Motors will also aim to attract military personnel stationed in the San Diego area. The city’s significant military presence offers a unique customer base that requires dependable vehicles for both personal and professional use. Special promotions and financing options will be designed to cater to the needs of this segment, recognizing their service and providing value-added benefits.

Another important customer segment includes eco-conscious buyers interested in electric and hybrid vehicles. San Diego’s commitment to sustainability and its environmentally aware population make this an ideal target market for DriveDream Motors. The dealership will offer a selection of eco-friendly vehicles, along with information and incentives to encourage sustainable automotive choices.

Customer Needs

DriveDream Motors understands the essential need for high-quality cars among residents who value reliability, performance, and aesthetics in their vehicles. Customers can expect an inventory that meets rigorous standards, ensuring each car is not only visually appealing but also mechanically sound. This commitment to quality is the cornerstone of the dealership’s promise to its customers.

In addition to vehicles, DriveDream Motors recognizes the importance of offering top-tier car parts and accessories. Customers seeking to enhance their driving experience or maintain their cars in peak condition can find everything they need under one roof. The dealership prioritizes the availability of genuine, high-quality parts and accessories, catering to the specific needs of car enthusiasts and everyday users alike.

Moreover, DriveDream Motors appreciates the importance of providing a holistic customer experience. From the moment customers step into the dealership, they can expect attentive service tailored to their individual needs. Whether it’s finding the perfect car, securing financing options, or seeking advice on vehicle maintenance, the team is dedicated to ensuring satisfaction at every turn.

DriveDream Motors’s competitors include the following companies:

North Park Auto Sales specializes in offering a wide variety of used cars, including sedans, SUVs, and trucks, catering to a broad demographic looking for quality vehicles at competitive prices. Their price points vary widely, accommodating budget-conscious buyers as well as those seeking luxury pre-owned vehicles. Located in the heart of San Diego, they serve customers across the metro area, capitalizing on a prime location that attracts a diverse clientele. Key strengths include a vast inventory and strategic positioning, while a potential weakness might be the lack of new vehicle sales, limiting options for customers seeking the latest models.

Car Czar Auto Sales focuses on providing customers with a curated selection of used vehicles, emphasizing quality and reliability. Their products range from economy cars to premium SUVs, with price points designed to meet the needs of mid to high-end buyers. Operating out of a single location in San Diego, Car Czar Auto Sales targets local residents seeking vehicles that offer a blend of performance and value. A major strength is the personalized customer service and a rigorous vehicle selection process. However, their limited geographical reach and inventory might be seen as weaknesses compared to competitors with multiple locations and broader selections.

Branco Motors takes a unique approach by specializing in electric and hybrid vehicles, catering to environmentally conscious consumers seeking sustainable transportation options. They offer competitive pricing on a range of eco-friendly cars, positioning themselves as a go-to dealership for customers prioritizing green technology. Situated in a convenient San Diego location, Branco Motors appeals to a niche market within the city and its surrounding areas. Their key strength lies in the specialized focus on electric and hybrid vehicles, addressing growing consumer interest in sustainability. However, this specialization might also be a weakness, as it could limit their appeal to a broader audience not yet ready to transition to electric or hybrid vehicles.

Competitive Advantages

At DriveDream Motors, we pride ourselves on offering an unparalleled selection of superior vehicles that surpass our competitors in both quality and variety. Our commitment to excellence ensures that every car on our lot meets rigorous standards of performance, safety, and comfort, allowing our customers to shop with confidence. We understand the diverse needs and preferences of our clientele in San Diego, and by providing a wider range of options, we cater to every taste and requirement. Whether you’re in the market for a sleek sedan, a robust SUV, or an eco-friendly electric vehicle, our extensive inventory promises something for everyone, making us a one-stop destination for car buyers seeking the best.

Beyond our exceptional vehicle offerings, our competitive edge is further sharpened by our unparalleled customer service and tailored purchase experiences. We believe that buying a car should be as enjoyable as driving one, which is why our team goes above and beyond to ensure a seamless and personalized buying process. From offering expert advice without the pressure to sell, to crafting flexible financing options that fit various budgets, we prioritize the needs and satisfaction of our customers above all else. This customer-centric approach not only sets us apart from the competition but also fosters lasting relationships with our clientele, establishing DriveDream Motors as a trusted name in the automotive industry in San Diego.

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

Products and Services

DriveDream Motors caters to a diverse clientele, offering an extensive range of products and services designed to meet the needs of car buyers and owners alike. From those in the market for a brand-new vehicle to individuals seeking reliable automotive parts and accessories, DriveDream Motors ensures a comprehensive shopping experience. The dealership prides itself on its commitment to quality, customer service, and competitive pricing.

At the forefront of DriveDream Motors’ offerings are new cars. Customers can explore a wide selection of the latest models from various manufacturers. Whether one is looking for a compact car, an SUV, or a luxury sedan, DriveDream Motors provides a variety of options to suit different preferences and budgets. The average selling price for new cars at the dealership hovers around $35,000, with fluctuations depending on the make, model, and included features.

In addition to new vehicles, DriveDream Motors also specializes in used cars. This segment caters to buyers seeking quality vehicles at more affordable price points. The dealership meticulously inspects each used car to ensure reliability and customer satisfaction. The average selling price for used cars is approximately $20,000, though this can vary significantly based on the car’s age, condition, and mileage.

Beyond vehicle sales, DriveDream Motors offers an array of automotive parts. For those looking to replace or upgrade parts of their vehicle, the dealership stocks genuine parts that guarantee compatibility and performance. Customers can expect to find parts at an average price point of $150, although more specialized or high-performance parts may carry a higher price tag.

Lastly, DriveDream Motors provides customers with a selection of automotive accessories. These range from aesthetic enhancements to practical additions that improve the functionality and comfort of one’s vehicle. Accessories are competitively priced, with an average cost of $100. This allows customers to personalize their vehicles without breaking the bank.

Throughout its product and service offerings, DriveDream Motors remains dedicated to delivering value, quality, and a positive shopping experience. Whether customers are in the market for a new or used vehicle, or simply looking to maintain or customize their existing car, DriveDream Motors stands ready to serve the automotive needs of the San Diego community.

Promotions Plan

DriveDream Motors embraces a comprehensive marketing strategy to attract customers, with online marketing at the forefront of its efforts. By leveraging the power of the internet, the dealership ensures widespread visibility across multiple digital platforms. This approach includes utilizing social media channels, where engaging content will captivate potential buyers and foster a strong community around the brand. Furthermore, DriveDream Motors will invest in search engine optimization (SEO) to ensure its website ranks high in search results, making it easier for customers to find them when searching for new cars in San Diego, CA.

In addition to online marketing, DriveDream Motors will employ a variety of other promotional methods. Email marketing campaigns will keep subscribers informed about the latest deals, new inventory arrivals, and exclusive events. The dealership also plans to host test-drive events, allowing customers to experience the thrill of driving their dream cars firsthand. These events will not only serve as an excellent opportunity for direct engagement but also help to build lasting relationships with the community.

Local partnerships with businesses and community organizations will further amplify DriveDream Motors’ presence in San Diego. By collaborating on events and promotions, the dealership will tap into established networks, reaching a broader audience. DriveDream Motors will also explore traditional advertising avenues such as radio and local newspapers to ensure a well-rounded promotional strategy that connects with customers across different media.

To enhance customer experience and satisfaction, DriveDream Motors will implement a referral program. Satisfied customers will receive incentives for referring friends and family, creating a word-of-mouth marketing effect that is both authentic and powerful. This strategy acknowledges the value of personal recommendations in the automotive industry and leverages it to attract new customers.

Lastly, DriveDream Motors will ensure its sales team is well-trained in customer service excellence. By providing outstanding service, the dealership aims to generate positive reviews and testimonials, further bolstering its reputation in the local market. Online reputation management will be a key focus, with the team actively responding to reviews and feedback to maintain a positive image.

Overall, DriveDream Motors will employ a multi-faceted promotional strategy that combines online marketing with traditional advertising, community engagement, and exceptional customer service. This approach will not only attract customers but also build a strong, loyal customer base in San Diego, CA.

Our Operations Plan details:

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

Key Operational Processes

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

• Inventory Management: Regularly update and manage the inventory of cars, ensuring a diverse selection of vehicles that meet the needs and preferences of our customer base.
• Customer Service: Provide exceptional customer service by greeting customers promptly, understanding their needs, and guiding them through the car selection process with expertise and empathy.
• Sales Process: Conduct the sales process efficiently, from test drives to explaining financing options, ensuring a smooth and transparent experience for the customer.
• Vehicle Maintenance: Perform regular maintenance and thorough inspections on all vehicles to ensure they are in excellent condition before sale.
• Marketing and Promotions: Execute marketing strategies and promotions to attract new customers and retain existing ones, including social media campaigns, email marketing, and community events.
• Financial Management: Monitor daily financial transactions, including sales, expenses, and profits, to ensure the dealership operates within its budget and achieves its financial goals.
• Staff Training: Provide ongoing training and development for all staff members to enhance their product knowledge, sales techniques, and customer service skills.
• Compliance: Ensure compliance with all local, state, and federal regulations related to car sales, including licensing and environmental regulations.
• Feedback and Reviews: Encourage and collect customer feedback and online reviews to assess the dealership’s performance and identify areas for improvement.
• Partnerships: Establish and maintain partnerships with local businesses, financial institutions, and car manufacturers to enhance the dealership’s offerings and reputation.

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

• Securing a Prime Location: Finalize the lease or purchase of a strategically located lot that is easily accessible, visible, and appealing to potential customers in San Diego, CA. This location should also provide ample space for displaying cars and customer parking.
• Obtaining Licenses and Permits: Complete all necessary legal formalities to operate a car dealership in California, including obtaining a dealer’s license, a business license, and any other local permits required for operation.
• Building and Showroom Setup: Design and set up an inviting showroom and customer service area. This includes purchasing or leasing office equipment, setting up IT infrastructure for inventory management, customer relationship management (CRM), and financial accounting systems.
• Inventory Acquisition: Establish relationships with car manufacturers and/or used car suppliers to acquire a diverse and appealing inventory that meets the needs and preferences of the local market.
• Staff Hiring and Training: Hire a skilled team, including sales personnel, finance officers, and service technicians. Provide them with comprehensive training to ensure high levels of customer service and knowledge about the cars being sold.
• Marketing and Branding Efforts: Develop and implement a strong marketing plan to build brand awareness and attract customers. This should include digital marketing, local advertising, and hosting launch events to generate buzz in the community.
• Launch Our Car Dealership: Officially open DriveDream Motors with a grand opening event aimed at generating sales leads and establishing relationships with potential customers in the community.
• Establishing Service and Maintenance Offerings: Set up a service department to offer maintenance and repairs, which can provide an additional revenue stream and help build long-term customer relationships.
• Achieving Sales Targets: Focus on reaching the initial revenue goal of $15,000/month. This involves closely monitoring sales activities, refining marketing strategies, and possibly adjusting inventory based on customer demand and feedback.
• Customer Feedback and Continuous Improvement: Implement a system for collecting customer feedback and regularly review this feedback to make necessary adjustments to the business model, customer service, and inventory offerings. This continuous improvement will help in adapting to market changes and customer preferences, thereby reducing business risks.

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

Isabella Lee, President

With a proven track record of leadership and achievements, Isabella Lee brings a wealth of experience to DriveDream Motors. Having previously managed a car dealership, Isabella possesses a deep understanding of the automotive sales industry, including market dynamics, customer relationship management, and operational efficiencies. Her hands-on experience in dealership management has equipped her with the insights necessary to drive sales, improve customer satisfaction, and navigate the complexities of the automotive market. Isabella’s leadership skills, combined with her ability to strategize and execute effectively, make her an invaluable asset to DriveDream Motors, positioning the company for long-term success and growth.

To realize our growth objectives, DriveDream Motors requires $925,000 in funding. This investment will be allocated towards capital improvements, including location buildout and the acquisition of essential equipment, and operational expenses such as inventory procurement, marketing initiatives, and staff salaries. This financial foundation is crucial for establishing our presence in the market, attracting a diverse customer base, and achieving our goal of becoming the leading car dealership in San Diego, CA.

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