Car Dealership Business Plan

Car Dealership Business Plan


A car dealership business plan illustrates the feasibility of the new business and also serves as a roadmap for the first few years of business. Almost everyone needs a car to travel from point A to point B.  The needs of every customer are different.  For example 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. 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. Students will look for 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 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.


The essential components of a business plan are

  1. The executive summary which is a nutshell of the entire plan
  2. The business description describes the proposed new endeavor, explains its purpose and its target market.
  3. The market analysis section provides the industry and the market description for the proposed business along with details on its competition.
  4. The next is the organizational structure of your business. what types of positions and departments it will encompass.
  5. The products or services that you will be offering.
  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.




No Requirements Description
1 Mission Statement Determine what you want the company to need to decide what you want to deal with only used or new cars.
The purpose of the company is to provide not only quality service, but a livelihood for the owners and its employees
2 Geography 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
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

Advantages of a car dealership Business plan

  1. It helps you stay on track. It helps the business to work without deviation
  2. A business plan helps to keep a clear objective
  3. It helps in identifying potential market, sales, costs of sales, sales drivers, lead processing and business processes
  4. It helps a business to grow.
  5. It helps in clearly identifying responsibilities , as to who is responsible for what
  6. A business plan helps in maintaining proper cash flow and this plays a huge impact on the financial health of the business.


A business plan helps in planning things, you can proactively plan for things rather than waiting for things to happen.

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