A car dealership business plan is a document demonstrating the feasibility of a prospective new business and providing a roadmap for its first several years of operation. Almost everyone needs a car to get from point A to B. Many families have two or more cars. The needs of every customer is different

Different customers

Students will include high school and college age students who need a safe and economical car. This group is concerned with price, flashy looks, and being cool. These drivers tend to be less educated and will buy on impulse paying more for less car. They will also buy cars more often than others. The retired group will focus on practicality. Cost may be less important than quality and features. This group wants comfortable, nicely equipped vehicles at a reasonable price. They will want a vehicle that will last for years. Families will focus on safe, practical vehicles. Something that will last for years, can fetch groceries, carry the kids, and perform long trips. Many will be on a budget, and price may be a big factor. They will shop around and educate themselves on vehicles, shopping for a specific make or model. The last group is the singles. They are similar to the students in that they want flashly cool cars, but may be a working professional who can afford to pay more for a higher-quality vehicle.


There is a real need for a highly professional used car dealer who can provide quality vehicles at competitive prices, in a pleasant purchasing environment.

There is also a practical need for new car dealers to move a large used car inventory that takes up valuable space on their lots.

A sample car dealership business plan is as follows;

1. Executive Summary
a. Opportunity
i. Problem Summary
ii. Solution Summary
iii. Market Summary
iv. Competition
v. Overview
vi. Why Us?
b. Expectations
i. Forecast
ii. Financial Highlights by Year [chart]
iii. Financing Needed
2. Opportunity
a. Problem & Solution
i. Problem Worth Solving
ii. Our Solution
b. Target Market
c. Competition
i. Current Alternatives
ii. Our Advantages
3. Execution
a. Marketing & Sales
i. Marketing Plan
ii. Sales Plan
b. Operations
i. Locations & Facilities
ii. Technology
iii. Equipment & Tools
c. Milestones & Metrics
i. Milestones Table
ii. Key Metrics
4. Company
a. Overview
b. Team
i. Management Team
ii. Advisors
5. Financial Plan
a. Forecast
i. Key Assumptions
ii. Revenue by Month [chart]
iii. Expenses by Month [chart]
iv. Net Profit (or Loss) by Year [chart]
b. Financing
i. Use of Funds
ii. Sources of Funds
c. Statements
i. Projected Profit & Loss
ii. Projected Balance Sheet
iii. Projected Cash Flow Statement
6. Appendix
a. Monthly Financial Forecasts
b. Additional Documentation


The essential components of a car dealership business plan are

  1. The executive summary is a nutshell version of the entire plan, briefly covering the essentials.
  2. The business description describes the proposed new endeavor, explains its purpose and its target market.
  3. The plan’s market analysis section describes the industry and the market environment of the proposed business, including a profile of the competition
  4. The organizational and managerial section explains how you envision the structure of your business, what types of positions and departments it will encompass.
  5. The products (or services) section details what you’re offering. This section should include a full description of  the products you’ll sell and your plan for product lifecycle management
  6. The marketing and sales section explains your strategies for branding, marketing and selling your product or service
  7. The funding request will differ according to what type of information is required by the funding party.
  1. The financial projection covers the expected performance and milestones over the first years of operation, usually five years. For an existing business, historical financial data should be included.
  2. An appendix can include useful information that doesn’t belong in any of the other sections.

For a business to succeed, an effective business plan is required.  Once you develop your auto detailing business plan you need to review it periodically and make adjustments as your business changes and matures.


No Requirements Description
1 Mission Statement Determine what you want the company to be.
The purpose of the company is to provide not only quality service, but a livelihood for the owners and its employees
2 Demographics Determining the location of the business is the biggest requirement
Determine where the customers are and how you will reach them
You need to identify the other competitors who provide the same service as provided by you and their proximity to your business
3 Services offered What type of services will be provided by the Dealer. For eg: if Repairs will also be provided. Will it include both exterior and interior services
4 Financing Finance is the main strength of any business.
Most of the finance needed will be provided by the dealer
The next step would be to go for loans from Financial Institutions.
If the business is progressive, the banks and institutions will come forward to give loans
5 Marketing Plan The marketing plan differs from business to business
The marketing plan may include
1.Development of the website to ensure a presence on the internet.
2.Join the local chamber of commerce to gain immediate exposure to the businesses in the area
3.exploiting the social media tools on the internet and the smart phones in use.
4.Create proper signage, logos, and business cards for use by the company and its employees
5.Develop a plan for monthly or quarterly flyers and promotions
6.Advertising mediums should be monitored and controlled to determine success in terms of customer and revenue growth
6 Cost and Profit Model: This helps to project the income, expenses for the future periods
7 Equipment and consumable products: List the requirement of the equipment for the business.
For eg: if the repair services are to be provided the following equipments are required
Car wash equipment
Pressure washer
low pressure washer
vapor steamer
Paint correction
Interior Cleaning
Cleaning and deodorizing equipment
Heated extractor
Tornador air purging equipment
Ozone generator
Chemical storage
Added Value Profit Centers
Paint chip repair
Headlight restoration
Plastic trim restoration
Glass repair
Vinyl and leather repair
Carpet dying
Odor removal
Window tinting
8 License and Permits List all permits and licenses needed to be compliant with the local, state and federal regulations. Review legal requirement with counsel and accounting professional.
9 local environmental regulations It is important to understand the regulations and the potential equipment needed to comply. Be sure to search them out and list them in your plan so that your lawyer can assist you in understanding and complying with them. These requirements are different in each area and require your attention.
10 Business Structure: Many entrepreneurs do not consider forming a business entity. Instead, the business will default to a sole proprietorship in the case of an individual owner, or a general partnership if there are multiple owners


Having a car dealership business plan helps you to stay on track.

Helps in keeping your business objectives clear

It helps in identifying potential market, sales, costs of sales, sales drivers, lead processing and business processes.

Aside from the strategy, there are also priorities for other factors of your business like growth, management and financial health

Use a car dealership plan to keep track of what needs to happen and in what order. For example, if you have to time a product release to match a testing schedule or marketing to match a release, your business plan can be invaluable in keeping you organized and on track.

Use a car dealership  business plan to keep track of dates and deadlines in one place. This is valuable even for the one-person business and vital for teams.

The car dealership business plan is an ideal place to clarify who is responsible for what. Every important task should have one person in charge. Your plan keeps track.

So many people acknowledge the need for regular team member reviews and just as many admit they hate the reviews. The plan is a great format for getting things in writing and following up on the difference between expectations and results with course corrections.

No business can afford to mismanage cash. And simple profits are rarely the same as cash. A cash flow plan is a great way to tie together educated guesses on sales, costs, expenses, assets you need to buy and debts you have to pay.



Having a CAR DEALERSHIP business plan gives you a way to be proactive — not reactive — about business. Don’t wait for things to happen. Plan them.



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