A car dealership or vehicle local distribution is a business that sells new or used cars at the retail level, based on a dealership contract with an automaker or its sales subsidiary. It employs automobile salespeople to sell their automotive vehicles.

A new car dealer is a dealer who sells only new vehicles. A used car, a pre-owned vehicle, or a secondhand car, is a vehicle that has previously had one or more retail owners. Used cars are sold through a variety of outlets, including franchise and independent car dealers, rental car companies, leasing offices, auctions, and private party sales.

The steps to run a car dealership are,

  1. Perform market research

The first step in any business venture is to determine if there is a demand for your product or service. Once you determine the demand, you need to consider how your company might attract some of that customer demand

  1. Determine your ideal customer

Every business needs to identify their ideal customer. Your ideal customer is a summary of the traits that your best customers have in common. When you identify the ideal customer, you can design your business to meet their needs. Look at the age, gender, occupation and income level of the customers you are trying to attract. Many car dealers build relationships with customers by selling cars and providing a service department. Some customers go back to the car dealer to get service on their vehicle

  1. Deciding What Type of Dealership To Open

If you sell both new and used cars, you have the opportunity to serve two type of consumers. Selling to both markets, however, will require a larger investment of time and money. Used cars typically require more service and maintenance. As you sell more used cars, you may be able grow your service business.

  1. Assess the need for a service department.

Everyone needs to get his or her car serviced eventually. Operating a service department is a great way to build a relationship with a car owner. You can develop relationships with customers who bought their vehicle somewhere else. If you do a great job on their car, they may buy their next car from you.

The need for service on your car can be stressful. It’s inconvenient to be without a car while it is being repaired. Your great customer service can help reduce that anxiety.

After you service someone’s car, stay in touch with the customer. Promote you car sales and service through emails and mailers. Your efforts will increase your chances of selling the customer a car in the future

  1. Planning Your Finances

Financing your dealership is a huge commitment. You’ll need to think carefully about how you will find the money to open your dealership.

Most car dealerships finance their floor plan through a bank. The cars on the lot serve as collateral for the floor plan loan. A dealership may also incur huge costs to design and build their showroom and repair center.

In addition to car inventory, you may need to hire dozens of employees. You’ll need cash to meet payroll each month.

If you borrow money, you’ll need to provide sufficient collateral for your loan. You may need to pledge personal assets as collateral to obtain your loan. The bank will also need to see detailed financial projections. These projections will explain how your business will generate a profit and repay the bank loan.

  1. Regulatory Requirement

Your state will require you to obtain a license to sell cars as your primary business. While individuals can sell cars to each other, a car dealer who sell many cars a year will need a license to operate.

To build your dealership, you will need to get building permits from your city or county.

  1. Automating Operations

BPA is a type of software or systemized method that takes difficult, redundant or otherwise complex tasks and simplifies them into a streamlined, hands-free process. In plain English, that means BPA uses less technology to get the same job done, making your operations a lot less complicated and a lot more efficient. The goal of BPA is to save businesses time and money by completing tedious tasks automatically. 

Benefits of Automation

Employees can focus less on small tasks and more on customer service. As automation takes hold and previously mundane and time-consuming tasks are eliminated, staff members can turn their attention towards customer needs and revenue-generating activities. Consider a call center that automatically receives chat transcripts from customers when they initiate a chat. Automated access to this kind of information allows them to handle phone calls quickly as they can immediately view any concerns raised in the chat dialog.

  • Integrate multiple systems together. Beyond customer service-centric integrations, there’s also the opportunity to automate various functions across departments and previously disparate systems. For example, some employee processes might require manual usage of finance or accounting systems, project management applications, and shipping/logistics. By introducing BPA, companies that automate interconnected processes that take up a considerable amount of time and also can be error prone due to the perils of manual entry.
  • Assign tasks dynamically. With BPA, companies can setup various rules that send tasks to the right staff members at the right time. This approach can have a transformative effect on efficiency because employees receive only those tasks that match their skills, and work is more evenly distributed. During slow periods, work can be dynamically shifted to other secondary tasks, or workers can be sent home early. More efficient staff members benefit the bottom line and can also improve morale and retention.

Persistent Challenges of Business Process Automation

Despite its many benefits, there are some challenges that come with widespread adoption of BPA best practices. Consider these three examples:

  • Integration of various systems and tools can be difficult. Automation that occurs across multiple systems is very helpful, but it poses a significant challenge. Work with an experienced IT consultancy that can guide you on choosing the right solutions that “talk” to each other and will allow you to maximize the benefits of BPA.
  • Automation brings fears of job cuts. While some automation can result in the loss of jobs for workers who only perform repetitive and easily automated tasks, BPA actually opens up opportunities for many workers. It provides them with time to focus on pleasing the customer, generating sales, improving the product, or engaging in other tasks that directly impact the bottom line.
  • BPA needs monitoring. When making sweeping changes to processes, it’s important to perform honest reviews of the cost and productivity benefits. This means establishing benchmarks of pre-automation work compared to employee tasks and the business gains after automation. Again, an IT consultancy is an invaluable partner for guiding you on choosing the right processes for BPA, the ones that will produce clear long-term gains. 

Auto dealer management software automates and streamlines some of the redundant tasks that vehicle dealers face in their daily back-end office to front-end business.

  • Track financial accounts related to invoicing and ledger;
  • Manage inventory of used and unused vehicles;
  • Generate customized reports related to accident history and credit reports;
  • Optimize cost of vehicle repairs.

The main features of Reach Software are

Loyalty Management– Assigns points for every sale that is done and helps in redeeming the points in future sales.

Tally Import – Easily import excel files taken from Tally and import it into our Software for various time periods and manage accounts with ease

Access – Multi-User operation with restriction menus,Auto Back up,Accounting Period Auto change,Any Location operation,Easy to handle,No hard accounting process and buttons,Auto conversion to accounting formats

Order Management- Receive Job orders or Sales Orders and convert them into Invoices once ready

Manufacturing Management-Manage your Production process, Purchase approvals and Raw material Conversions and extract Finished Goods Reports.

Invoicing- Create Invoices with your own branding or choose from over 20 templates (includes contractor Invoices). Generate Invoices or convert quotes to Invoices. Automatically convert invoices raised in foreign currency to INR. Raise recurring Invoices. Email, print or extract Invoices to pdf. Get reminded every time an Invoice is due. Send reminder sms or emails.

Multi Branch-Create multiple Branch and give an option to manage each of them individually business by the Owner

Mobile Application-Access across tabs, iPads, iPhones and android phones, pick photos of expense vouchers and attach to expenses, raise invoices, check cash and bank balances, daily profitability and other key reports on phone.

Business Automation-Leads from all sources,Leads extractions via mail server,Converting leads to appointments,Quotes,Converting quotes to Invoices,Email-SMS update,Delivery status update,Work pending strategy.


Digital Agreements

Create Agreements on the Tab and get it signed digitally from your customer.
Save agreements on the Cloud and “WOW” the customer with super fast documentation.


Whatsapp/ SMS/ E-mail Invoices to customers. Great way to save paper and excite customers.


Seek Job Quote Approvals from customers on sms/email. Without disturbing them with annoying calls.

Profit per car

Calculate the cost of every car sold and profits made real time. Helps you quote the right prices and reduces losses.

Multi –  Currency

Send automated SMS/ email on Status of the vehicle. Helps the customer be informed proactively.

Vehicle Management

Set SMS reminders for due dates of Insurance, Maintenance etc of every car.Along with all statutory details.


Make informed purchases based on what is selling. Helps you reduce non-moving stock purchase.

Document Management

Attach pictures, Insurance and other documents to every invoice on the cloud.

Mobile App

Be updated of the work being done on your mobile app. Helps you control your business from anywhere.

Commission Calculation

Calculate commissions for mechanics automatically with pre-defined details. Save time at the month-end.


Create payment vouchers for driver payments and expenses.See Profitability of Business.


Unlike a traditional Accounting software, Reach is accessible online like your gmail or facebook account. so, all your employees (Salesmen, mechanics, Stores and Accountants) can work using the software at the same time.

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