used car lot business plan

Don't bother with copy and paste.

Get this complete sample business plan as a free text document.

Used Auto Sales Business Plan

Start your own used auto sales business plan

Integrity Auto Sales

Executive summary executive summary is a brief introduction to your business plan. it describes your business, the problem that it solves, your target market, and financial highlights.">, auto sales & parts.

There is a need in Lane County for a large selection of quality used cars, and Integrity Auto Sales will sell these top-quality used vehicles at a competitive price. The owner and sales manager have over 30 years of combined experience in new and used auto sales. We will continue to develop our excellent working relationship with local dealers and auctions to bring the savings to the customer.

We will create a purchasing environment that caters to the customer’s needs. We are selling a professional service and an experience in car buying that will bring customers back again, as well as referring friends and family. We estimate an optimistic gross margin over the industry average. We will be successful because of the excellent team we have assembled and the drive and determination of the owners.

Almost everyone needs a car to get from point A to B. Many families have two or more cars. Due to the recent success of the new car market, there is a large inventory of used cars available for re-sale. New car sales have enjoyed the largest single month gain in October up 24%.

Competition

Used car dealers are notorious for unethical sales practices. Customers are inherently cautious and untrusting as a result. The more we can provide a high-quality sales experience, the more successful we will be. Our salesmen will provide a friendly and personal experience for the buyer. We will follow up and ensure customer satisfaction. We will rely on these customers for an excellent reference to other car buyers. This company will build an excellent working relationship with our suppliers and customers.

Integrity Auto Sales provides a unique car buying experience to the customers in the Willamette Valley. One that focuses on customer satisfaction first. We understand that vehicle purchasing is a necessary, but sometimes unpleasant experience. Our goal is to provide the customer with an enjoyable, honest service by satisfying individual customers practical transportation needs with a quality product.

We also believe it is important to have quality vehicles at a low cost, and will back each vehicle with a 30 day limited warranty. Our company will make a profit by generating sales. It will provide job satisfaction and fair compensation to its employees, and a fair return to its owners. Hard work and performance is rewarded through bonuses and commissions. Job satisfaction is very important for employees and owners, we will create a work environment that is enjoyable and profitable for all.

Expectations

• Growth will be moderate to good, cash flows steady with several months of loss in the beginning
• Marketing will remain below 10% of sales. 
• The company will invest residual profits (10%) into financial markets and approximately 50% into company expansion for the first year.

Financial Highlights by Year

Financing needed.

We need $130,000 funding to start. That includes a $100,000 loan. Jonathan will invest $20,000 and Don will invest $10,000. 

Opportunity

Problem & solution, problem worth solving, our solution, target market, market size & segments.

Almost everyone needs a car to get from point A to B. Many families have two or more cars. Due to the recent success of the new car market, there is a large inventory of used cars available for re-sale. New car sales have enjoyed the largest single month gain in October 2001, up 24%.

4.1 Market Segmentation

Our market segmentation will consist of four basic segments; students, retired, families, and singles.

Current Alternatives

Our closest, similar competitors are AA Auto Sales, Big Apple Car Sales, Frank’s Auto Place, Guaranty, R & L Motors, and Sierra Truck, all on Hwy 99 between Eugene and Junction City.

• The primary competitors will be those in and around Junction City. Guaranty is a large, well-established dealer, with approximately 75% of the local market share. Guaranty has a large operation with a well-trained sales staff. Our sales manager is a former Guaranty sales manager, who understands the competition’s operations very well.
• Frank’s Auto Place offers a limited selection, and appears to be unorganized. Frank’s does not offer any competitive marketing and primarily focuses on the $1-2,000 vehicle.

Our Advantages

Keys to success.

To succeed in this business we must:

• Put together a team of experienced professionals.
• Secure an excellent high-traffic location.
• Establish a network of suppliers, in order to buy and sell products that are of the highest reliability and quality, at a competitive price.
• Ensure customer satisfaction by encouraging the two most important values, honor and integrity.
• Create high morale by rewarding employee success with monetary compensation.

Marketing & Sales

Marketing plan.

Our marketing strategy will focus on four segments. Those segments are described in the following subtopics. We will implement a strategy that treats customers as a community. This means our marketing resources will be centered around advertising both sales promotions (events) and personal sales (customer service, friendly atmosphere).

• The marketing budget will not exceed $6,000 per year.
• 100% customer satisfaction, measured through repeat customers, referrals and surveys.
• To achieve a respectable profit margin within the first three-years.
• To achieve a healthy net profit by year two.

Brought to you by

Create a professional business plan

Using ai and step-by-step instructions.

Secure funding

Validate ideas

Build a strategy

The  retired  group will focus on practicality. Cost may be less important than quality and features. This group wants comfortable, nicely equipped vehicles at a reasonable price. They will want a vehicle that will last for years.

Families  will focus on safe, practical vehicles. Something that will last for years, can fetch groceries, carry the kids, and perform long trips. Many will be on a budget, and price may be a big factor. They will shop around and educate themselves on vehicles, shopping for a specific make or model.

The last group is the  singles . They are similar to the students in that they want flashly cool cars, but may be a working professional who can afford to pay more for a higher-quality vehicle.

Sales compensation is based on a percent of profits. We will invest adequate time and resources into training each member of the sales team and into good customer relations. Salesmen will be paid a portion of their salary based on commission. Good performance is rewarded with increased commission and bonuses. However integrity will not be sacrificed for sales. Customer satisfaction will continue to be a top priority. All potential sales will be attended to in a timely fashion and long-term salesperson-customer relationships will take precedence over sales closure.

Locations & Facilities

• The company office is located at 12345 HWY 99, Junction City, OR 97666.
• The office is approximately 1,000 square feet and has ample space for the first three years of growth.
• The 20,000 square foot lot and building is leased from the principal owner.

Integrity Auto Sales sells top-quality used vehicles at a competitive price. Integrity buys pre-inspected vehicles wholesale from well known local car dealers, and auto auctions. Integrity continually maintains a diverse stock of vehicles, providing the widest selection for individual needs.

Vehicles are purchased weekly, to add to the current stock on hand. Each vehicle is thoroughly inspected by an ASE mechanic with over 25 years of experience. Only vehicles that pass this critical 26 point inspection are sold on-site.

Integrity Auto Sales sells all types of used vehicles, from sports cars to RVs. We cater to each customer individually, to satisfy their own practical needs.  We buy only the best used vehicles at or below wholesale in order to bring the savings to the customers. Each vehicle is thoroughly inspected by an ASE mechanic with over 25 years of experience. We also offer an auto finding service to customers. If we do not have the vehicle they want in stock, we will find one for them.

Milestones & Metrics

Milestones table, key metrics.

Our key metrics are: 

• # of facebook posts and pageviews 
• # of tweets and retweets
• # of reps that meet and excel their quotas. 
• cogs of our most popular cars
• website page views and shares 
• Follow our customers figure out their favorite cars and features 

Ownership & Structure

Integrity Auto Sales is a privately held corporation. It will be registered as a Subchapter S, with ownership 60%-Jonathan Dinsmore, 40%-Don Mazzioti.

Management Team

Integrity will start with four initial employees. The owner will manage over all operations and the sales manager will manage all buying and selling of inventory. A records clerk and lot attendant will also be hired initially.

Once the gross margin and cash flow will support it, we will hire an additional salesman and lot attendants (tentatively four to six months).

Personnel Table

Financial plan investor-ready personnel plan .">, key assumptions.

We will accept credit cards and trade-ins of any value. Credit cards will have a negative affect on cash flow in that we may not be paid for several days. Trade-ins will also impact cash flow in that they are an asset and have no real value until sold. We will have to limit the number of credit transactions, and only take in quality trades at a wholesale price to facilitate turning a quick profit. The personnel burden is very low because benefits are not paid to part-timers. And the short-term interest rate is extraordinarily low because of current market rates.

We also assume conservative earnings from selling loans and extended warranties will be made.

The other assumption is that current market conditions will remain for the next two to three years. Low rates will have a positive impact on sales and lending for the short term.

Our cash forecast is extremely unrealistic at the far end of the forecast. We leave it like that knowing that we will revise over time. We call it a cushion, and reassurance, not an accurate forecast. 

Revenue by Month

Expenses by month, net profit (or loss) by year, use of funds.

Almost 90% of start-up costs will go to assets. Start-up costs will be financed through a combination of owner’s investment, short-term loans (VA business loan), and long-term borrowing. The start-up chart shows the distribution of financing.

Other miscellaneous expenses include:

• Legal fees for business establishment (ownership, and no sell agreement).
• Stationary, office supplies.
• Marketing/advertising fees.
• Initial consultation to establish records with an accountant.
• Rent for lot and office.
• Establish a Web page for advertising.
• Expensed equipment (two computers, two desk, Fax/copier, phone lines, and office furniture).
• One month initial start-up investment in vehicles.

Sources of Funds

We will be needing $130,000 to start. $100,000 will be a long term business loan. Jonathan will give $20,000 and Don will give $10,000. 

Projected Profit & Loss

Projected balance sheet, projected cash flow statement.

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

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

No thanks, I prefer writing 40-page documents.

Discover the world’s #1 plan building software

Used Car Dealership Business Plan Template

Written by Dave Lavinsky

Used Car Dealership Business Plan

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

We have helped over 1,000 entrepreneurs and business owners create business plans and many have used them to start or grow their Used Car Dealerships.

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

Executive Summary

Business overview.

Reliable Motors is a used car dealership located in Portland, Oregon. We specialize in offering a wide selection of high-quality used vehicles to customers in our local area. With a focus on exceptional customer service and competitive pricing, we aim to become the preferred choice for individuals looking to purchase reliable pre-owned vehicles.

Reliable Motors is run by Otto Masterson. Otto has 12 years of experience in vehicle sales and dealership operations. His customer-centric approach, and strong understanding of the local market will ensure that our firm is successful.

Product Offering

Reliable Motors offers a diverse inventory of used cars, trucks, SUVs, and vans from various makes and models. Our selection includes vehicles that are carefully inspected, tested, and certified to meet our stringent quality standards. We also provide vehicle history reports and offer extended warranties for added peace of mind. Our knowledgeable sales team is committed to assisting customers in finding the right vehicle that suits their needs and budget.

Customer Focus

Our primary target market includes individuals and families in Portland, Oregon who are looking to purchase a reliable used vehicle. We will cater to customers with various budgets, offering a range of price points to accommodate different financial situations. Additionally, we will also establish partnerships with local businesses, such as car rental companies and auto repair shops, to provide them with fleet vehicles and maintenance services.

Management Team

Reliable Motors’ most valuable asset is the expertise and experience of its founder, Otto Masterson. Otto has been in automotive sales for the past 20 years. Throughout his career, he has developed a strong base of repeat customers, many of whom have stated that they will buy their next car from Reliable Motors once the company is established and running. Otto’s customer-centric approach, and strong understanding of the local market will ensure that our firm is successful.

Success Factors

Reliable Motors will achieve success by offering the following competitive advantages:

• Quality Inventory: We will ensure our inventory consists of well-maintained and reliable used vehicles that meet our strict quality standards.
• Competitive Pricing: We will offer competitive prices to attract customers and provide value for their money. Our pricing strategy will consider market trends, vehicle condition, and fair market value.
• Exceptional Customer Service: We will prioritize customer satisfaction by providing a personalized and hassle-free buying experience. Our knowledgeable and friendly sales team will assist customers in finding the right vehicle that meets their needs and budget.
• Transparent Processes: We will establish trust by providing accurate vehicle information, pricing details, and facilitating open communication.
• Strong Industry Partnerships: We will collaborate with reputable suppliers, finance institutions, and service providers to enhance our offerings and provide additional benefits to customers.

Financial Highlights

Reliable Motors is seeking $1,000,000 in funding to establish and grow the business. The funds will be allocated as follows:

• Inventory acquisition: $800,000
• Renovation and setup of the dealership facility: $100,000
• Marketing and advertising expenses: $50,000
• Working capital: $50,000

The projected financials indicate steady revenue growth and profitability within the first three years of operation

Company Overview

Who is reliable motors.

  Reliable Motors is run by Otto Masterson, a 12 year veteran in vehicle sales and dealership operations. After working for several dealerships around town, he surveyed his most loyal customers to see if they would be willing to switch to his new dealership once it is established. Most of his customers responded enthusiastically, which motivated Otto to finally launch his business.

Reliable Motors History

Once he canvassed his loyal customer base and located a potential location, Otto Masterson incorporated Reliable Motors as an S-Corporation in April 2023.

The business is currently being run out of Otto’s home office, but once the purchase of the dealership location is finalized, all operations will be run from there.

Since incorporation, Reliable Motors has achieved the following milestones:

• Found a location and made an offer of purchase
• Developed the company’s name, logo, and website
• Hired an architect to design the lot, the service area, and the office building
• Determined equipment and fixture requirements
• Began recruiting key employees

Reliable Motors Services

Reliable Motors will provide the following services to its customers:

• Vehicle Sales: offer an inventory of used cars, trucks, SUVs, and vans, catering to various customer preferences and budgets.
• Financing Assistance: assistance with financing options through partnerships with local banks and financial institutions.
• Trade-ins: Customers will have the option to trade in their current vehicles, allowing them to apply the value toward their purchase at Reliable Motors.

Industry Analysis

The used car industry is experiencing steady growth, driven by factors such as rising new car prices, improved vehicle reliability, and a growing preference for cost-effective transportation options.

The used car industry is expected to grow over the next several years. According to a recent report by IBISWorld, the used car dealerships industry is expected to grow at a CAGR of 1.2% from now until 2028. This growth is due to increasing environmental consciousness, which has caused many consumers to avoid purchasing new automobiles. This increase in demand and industry growth ensures that Reliable Motors will achieve success.

This industry presents a significant opportunity for Reliable Motors to cater to customers seeking quality used cars at competitive prices.

Customer Analysis

Demographic profile of target market.

Reliable Motors primarily targets individuals in the Portland area who are in the market for a reliable and affordable pre-owned vehicle. By understanding our customers’ needs and providing a personalized buying experience, we aim to build long-lasting customer relationships.

Customer Segmentation

Reliable Motors will primarily target the following customer profiles:

• First-time car buyers
• Professionals
• Individuals

Competitive Analysis

Direct and indirect competitors.

Reliable Motors faces competition from both direct and indirect competitors in the used car dealership industry. Direct competitors include other local dealerships offering similar vehicle options. Indirect competitors include online marketplaces and private sellers.

AutoWheels is a used car dealership that carries a large variety of used cars, trucks, SUVs, and vans. Their line of car brands include Chevrolet, Dodge, Ford, Jeep, and Toyota. AutoWheels’ focus is offering clean, newer model used cars with affordable monthly payments. The dealership offers flexible financing approval for buyers with any credit score or financial situation.

AutoWheels partners with Portland Precision Auto Care for its automotive maintenance and repair needs. This partnership enables AutoWheels to offer services that include Car and Truck care, Electronic Services, Electrical Services, General Services, Heating and Cooling Services, Engine & Transmission, Miscellaneous Services, Transmission Services, Undercar Services, and Brakes.

James Rivers Automotive Outlet

Located in Portland’s Sellwood-Moreland neighborhood, James Rivers Automotive Outlet is a member of the James Rivers Family-Owned and Operated group of dealers in Portland. The dealership carries a large inventory of new, certified pre-owned, and pre-owned line of cars, trucks, SUVs, and vans. Their line of vehicles are in all price ranges and body types. James Rivers Automotive Outlet also offers trade-in evaluations at their other franchised stores – James Rivers Honda, Acura, and Toyota. The dealership also offers affordable financing options.

Eastside Used Cars

Established in 2011, Eastside Used Cars is a family-owned used car dealership. The dealership is fully internet based and all sales are by appointment only, in one of two locations: Sandy and Gresham. The dealership claims to have the best prices in the market, offering wholesale prices to the public. Customers may also expect to receive top dollar for their trade-ins.

The dealership currently offers an inventory of 175 vehicles, ranging in price from $6,990 to $60,800. It offers a variety of finance options for consumers with all levels of credit, but outside financing is welcomed.

Competitive Advantage

Reliable Motors holds the following advantages over the competition:

• Rigorous Vehicle Inspection : Each vehicle in our inventory undergoes a thorough inspection to ensure its mechanical and cosmetic condition, providing customers with peace of mind.
• Customer-Centric Approach : We prioritize customer satisfaction by offering personalized assistance, transparent pricing, and a hassle-free buying experience.
• Extensive Inventory : Our diverse inventory caters to various customer preferences and budgets, ensuring a wide range of options to choose from.

Marketing Plan

Brand & value proposition.

Reliable Motors will offer a unique value proposition to its clientele:

• Client-focused automotive sales, where the customer is treated fairly, with transparent pricing and a variety of financing options
• Service built on long-term relationships
• Top-quality automotive repair and maintenance, at competitive prices

Promotions Strategy

The promotions strategy for Reliable Motors is as follows:

Reliable Motors understands that the best promotion comes from satisfied customers. The Company will encourage its customers to refer other businesses by providing economic or financial incentives for every new customer produced. This strategy will increase in effectiveness after the business has already been established.

Social Media

Reliable Motors will invest heavily in a social media advertising campaign. The company will create social media accounts and invest in ads on all social media platforms. It will use targeted marketing to appeal to the target demographics.

Website/SEO Marketing

Reliable Motors will invest heavily in developing a professional website that showcases current inventory, and provides valuation tools for potential trade-ins. It will also invest heavily in SEO so that the firm’s website will appear at the top of search engine results.

Operations Plan

The following will be the operations plan for Reliable Motors. Operation Functions:

• Otto Masterson is the Owner of Reliable Motors. In addition to providing inventory management and sales, he will also manage the general operations of the business.
• Otto Masterson is joined by a full-time administrative assistant, Mandy Bobo, who will take charge of the administrative tasks for the company. She will also be available to answer incoming calls and make service appointments.
• As the company builds its customer base, Otto will hire more sales professionals to grow our business further.

Milestones:

Reliable Motors will have the following milestones completed in the next six months.

• 6/2023 Finalize location purchase
• 7/2023 Design and build out Reliable Motors
• 8/2023 Hire and train initial staff
• 9/2023 Kickoff of promotional campaign
• 10/2023 Launch Reliable Motors
• 11/2023 Reach break-even

Reliable Motors’s most valuable asset is the expertise and experience of its founder, Otto Masterson. Otto has been in automotive sales for the past 20 years. Throughout his career, he has developed a loyal customer base, many of whom have stated that they will switch to Reliable Motors when it comes time to purchase a new vehicle. Otto’s customer-centric approach, and strong understanding of the local market will ensure that our dealership is successful.

Though he has never run his own business, Otto Masterson worked his way up from automotive sales associate to sales manager, where he gained an in-depth knowledge of the operations (e.g., running day-to-day operations) and the business (e.g., staffing, marketing, etc.) sides of the industry. He also already has a starting customer base that he served while working for other auto dealerships. He will hire several other employees who can help him run the aspects of the business that he is unfamiliar with.

Financial Plan

Key revenue & costs.

Reliable Motors’s revenues will from vehicle sales, with additional income generated through financing options and after-sales services. Key costs include

The notable cost drivers for the company will include inventory acquisition, overhead expenses, marketing expenses, personnel costs, and facility maintenance.

Funding Requirements and Use of Funds

Key assumptions.

The following outlines the key assumptions required in order to achieve the revenue and cost numbers in the financials and pay off the startup business loan.

• Number of clients:
• Year 1: 400
• Year 2: 500
• Year 3: 750
• Year 4: 1000
• Year 5: 1250

Financial Projections

Income statement, balance sheet, cash flow statement, used car dealership business plan faqs, what is a used car dealership business plan.

A used car dealership business plan is a plan to start and/or grow your used car dealership business. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections.

You can easily complete your Used Car Dealership business plan using our Used Car Dealership Business Plan Template here .

What are the Main Types of Used Car Dealership Businesses? 

There are a number of different kinds of used car dealership businesses , some examples include: Franchised dealership, Independent dealerships, and “Bad Credit” dealerships.

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

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

What are the Steps To Start a Used Car Dealership Business?

Starting a used car dealership business can be an exciting endeavor. Having a clear roadmap of the steps to start a business will help you stay focused on your goals and get started faster.

1. Develop A Used Car Dealership Business Plan - The first step in starting a business is to create a detailed used car dealership business plan that outlines all aspects of the venture. This should include potential market size and target customers, the services or products you will offer, pricing strategies and a detailed financial forecast. 

2. Choose Your Legal Structure - It's important to select an appropriate legal entity for your used car dealership business. This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks so it’s important to do research and choose wisely so that your used car dealership business is in compliance with local laws.

3. Register Your Used Car Dealership Business - Once you have chosen a legal structure, the next step is to register your used car dealership business with the government or state where you’re operating from. This includes obtaining licenses and permits as required by federal, state, and local laws.

4. Identify Financing Options - It’s likely that you’ll need some capital to start your used car dealership business, so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms.

5. Choose a Location - Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of space would be suitable for your operations.

6. Hire Employees - There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events.

7. Acquire Necessary Used Car Dealership Equipment & Supplies - In order to start your used car dealership business, you'll need to purchase all of the necessary equipment and supplies to run a successful operation.

8. Market & Promote Your Business - Once you have all the necessary pieces in place, it’s time to start promoting and marketing your used car dealership business. This includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing techniques such as radio or print advertising. 

Learn more about how to start a successful used car dealership business:

• How to Start a Used Car Business

Where Can I Get a Used Car Dealership Business Plan PDF?

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

How to start your used car business by utilizing APIs

• March 9, 2024

Joses Peter

• No Comments

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

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

Used Car Dealership Business

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

Steps on starting a used car business

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

Think and act like an entrepreneur

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

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

Arrange Capital for Startup Costs

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

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

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

Choose market location

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

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

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

Create a solid business plan and set financial goals

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

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

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

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

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

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

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

Making Profits in the Car Dealership Business

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

Locate car auctions exclusive for dealers

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

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

Have an experienced mechanic

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

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

Provide Warranties on Your Vehicles

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

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

Create a website/mobile application and utilize APIs

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

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

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

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

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

Place Adverts and Build Your Online Presence

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

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

Calculate a “Bottom Dollar” for Each Vehicle

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

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

Prioritize Customer Service

Here are some tips:

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

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

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

Keep the car lot and showroom neat and attractive

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

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

Statistics About Used Car Dealerships

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

Frequently Asked Questions

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

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

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

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

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Save my name, email, and website in this browser for the next time I comment.

• Address: 65 Brunswick Blvd, Dollard-Des Ormeaux, QC, CA.
• Phone: (800)-205-9337
• Email: [email protected]
• Book a Meeting
• Client Login
• Terms & conditions
• Privacy Policy

API SERVICES

• OCR API Service
• VIN Decoding API
• Vehicle Specification API
• Vehicle Market Value API
• Vehicle Service API
• Electric Vehicle Specifications API
• Auction History API
• Sales History API
• Vehicle Media API
• Window Sticker API
• Vehicle Warranty API
• Vehicle Recalls API
• Vehicle Maintenance API
• Repair Pricing API

CONNECT WITH US

© Copyright © 2024, Vehicle Databases All rights reserved.

Business Plan Template for Used Car Dealership

• Great for beginners
• Ready-to-use, fully customizable Subcategory
• Get started in seconds

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.
• Business Plan Template for Global Trade Professionals
• Business Plan Template for Copywriters
• Business Plan Template for Telecom Operators
• Business Plan Template for Dancers
• Business Plan Template for Gaming Industry

Template details

Free forever with 100mb storage.

Free training & 24-hours support

Serious about security & privacy

Highest levels of uptime the last 12 months

• Product Roadmap
• Affiliate & Referrals
• On-Demand Demo
• Integrations
• Consultants
• Gantt Chart
• Native Time Tracking
• Automations
• Kanban Board
• vs Airtable
• vs Basecamp
• vs MS Project
• vs Smartsheet
• Software Team Hub
• PM Software Guide

Growthink's Ultimate Business Plan Template

The world's #1 business plan template.

• Search Search for: Search Close

Used Car Dealership Business Plan Template

The world’s #1 used car dealership business plan template — it’s the quickest and easiest way to create a winning used car dealership business plan, period.

• Quickly & easily finish your business plan
• Turn your ideas into reality
• Get funding from lenders & investors
• Dominate your competitors
• Increase sales & profits
• Trusted by more than 100,000 businesses
• Zero learning curve
• 365-day 100% money back guarantee
• Get the world’s best growth strategies & tactics
• Lifetime access and no recurring fees
• 365 days of free customer support
• “Insider Secrets to Raising Capital” ($299 value) included FREE
• “Productivity Secrets” ($197 value) included FREE
• … and much more!

It Took Us 17 Years to Create the Ultimate Used Car Dealership Business Plan Template for You

Hi, I’m Dave Lavinsky, the co-founder and President of Growthink.

I’m honored and flattered to have been recognized as the world’s foremost business planning expert by BusinessWeek, Forbes and others.

Seventeen years ago we started writing business plans for entrepreneurs, executives and business owners like you.

During this time, we’ve helped over 100,000 entrepreneurs and businesses achieve great success.

Using this vast experience, we have created and constantly refined Growthink’s Ultimate Used Car Dealership Business Plan Template to be the hands-down quickest and easiest way to create a professional Used Car Dealership business plan that allows you to raise capital and build a strategically sound business.

100,000+ Satisfied Buyers

“Your Business Planning Template has been the single most valuable tool for helping me think more critically and strategically. So thank you.”

Michael Saletta

“I always thought writing a business plan was going to be very difficult – and that’s why I kept putting it off.

Growthink’s Ultimate Business Plan Template made it as easy as filling in the blanks and pressing ‘print.’ Thanks again.”

David Schleider

“I downloaded your template onto my computer, opened it up… and I actually was able to finish my business plan by the end of the day!”

Brett Perrine

“I bought your business plan template and raised $1,550,000 this year. Thank you for all you do!”

Wendy Drumm

INCREDIBLE FEATURES

You can finally create a professional Used Car Dealership business plan in less than 1 day thanks to these powerful features of Growthink’s Ultimate Used Car Dealership Business Plan Template:

Simply Fill in the Blanks

We’ve created simple, fill-in-the-blank exercises that guide you through all the key questions your Used Car Dealership business plan must answer.

And we give you samples for every section of your plan.

Just type your answers directly into our template and you’re done!

Automatic Financials

Simply type in some numbers, like your salary and expected growth, and our template automatically calculates your complete 5-year financial projections.

You’ll have your Income Statement, Balance Sheet, Cash Flow Statement, and multiple charts and graphs completed in minutes.

Turn Your Ideas to Reality

If you don’t have an action plan for executing on your ideas, they’ll never materialize.

That’s why Growthink’s Ultimate Used Car Dealership Business Plan Template includes an Operations Plan section.

This section takes you through our proven and proprietary process for creating an Operations Plan that will transform your ideas into reality.

Improve Your Strategy

Growthink’s Ultimate Used Car Dealership Business Plan Template helps you build a strategically sound business.

It guides you through key questions about your company, marketing and operations strategies, and gives you tons of ideas for improvement.

For example, in the Marketing Plan section, you’ll see several of the best marketing tactics to get new customers.

Expert Answers

Our Ultimate Used Car Dealership Business Plan Template “Members Area” gives answers to all your questions, plus access to our amazing customer support team.

Raise Money Faster

The content and format of our Ultimate Used Car Dealership Business Plan Template is tailored to the wants and needs of investors and lenders, so you raise more funding faster.

Our formula works wonders — our clients have raised over $2.5 BILLION!

Lifetime Access

Once you purchase Growthink’s Ultimate Used Car Dealership Business Plan Template, you have lifetime access to use it for any Used Car Dealership business in which you’re involved, now or in the future.

There are no recurring or monthly fees for our template, just a one-time fee.

Zero Learning Curve

There’s no software to learn or install.

You simply download, personalize & print our Microsoft Word® and Excel® compatible Ultimate Used Car Dealership Business Plan Template. And it works flawlessly on both PCs and Macs.

This is yet another way you save precious time!

365-Day Money-Back Guarantee!

Here’s our promise: Purchase today 100% risk-free because Growthink’s Ultimate Used Car Dealership Business Plan Template comes with a full 365 Day 100% Money Back Guarantee.

If for any reason you are not delighted with your purchase, simply contact our friendly support desk and you will be promptly given a full refund… No questions asked!

Plus 2 Great Free Bonuses – Yours Free

Raise Funding in a Flash

When you order, we give you instant access to “Insider Secrets to Raising Capital” ($299 value) for FREE.

This program includes 15 expert interviews (both audio recordings and transcripts) we conducted with top investors, lenders and entrepreneurs who have raised funding.

The interviews teach you the keys to raising funding and the critical mistakes to avoid.

$299 Value – Yours FREE

Fast-Track Your Growth

We not only help you quickly and expertly finish your business plan, but we help you grow a thriving business.

We do this by giving you FREE instant access to our renowned “Productivity Secrets for Entrepreneurs” course ($197 value).

This program gives you the precise techniques the world’s most successful business executives use to achieve amazing success in less time than you’d ever think imaginable!

$197 Value – Yours FREE

Get Growthink’s Ultimate Used Car Dealership Business Plan Template Right Now!

Even More Satisfied Buyers

“I knew I had to create a business plan, but I didn’t know how to go about doing that.

I was delighted that I could pick up your template with all the key components… just drop in my idea… and put it together in a way that hits all the key points and makes an impact with the investment community.

Obviously, the result is in whether or not you’re able to raise money…

We’re delighted because we were able to raise money, and we’re off to the races!”

Andrew Kessler

“I wanted to let you know that since I used your template, my business has improved dramatically and I am FINALLY starting to really grow.

You were right. I was able to easily create my financials (I was really scared about that going in) and editing the document was pretty straightforward.

And, then, a friend of mine introduced me to some angel investors. And when I showed them the business plan, they wrote me a check on the spot!.”

Scott Sofsian

“I purchased this product and it was amazing! Guess what? I got my loan and had 2 other offers.

My biz plan was done in 12 hours. Worth every penny!”

Maria Miranda

I wanted to thank you for the business advice around creating a compelling business plan.

I used your guidance and since then have raised more than $1 million in angel investment.”

David McGrath

“Dave’s business plan made all of this achievable. The excel spread sheets made it easy to provide forecasts and budgets.

When I had a question I just needed to call his team up. They were knowledgeable, helpful and friendly.

I highly recommend this product.”

Joseph Grimaldi

“It is my pleasure to write this glowing testimony concerning your business plan template. I am VERY pleased with this product and it has helped me complete my business plan.

I do not know how we would have achieved these results without your company’s product.”

Juan Zane Crawford

The Most Well-Regarded Business Plan Firm on Earth

For two decades the media has praised Growthink and looked to us for answers to their questions about business planning, raising capital and growing ultra-successful businesses.

We are the highest rated business plan firm on ResellerRatings.com (9.6 rating out of 10) and have had an A+ Rating with BBB since 1999.

Here’s a small sample of the 300+ media sources in which Growthink has been featured:

Frequently Asked Questions

Below are answers to your most frequently asked questions:.

Immediately upon purchasing Growthink’s Ultimate Used Car Dealership Business Plan Template, you will be taken to our Member’s Area where you can instantly download our template and begin working on your business plan.

If for any reason you are not delighted with our product, simply contact our friendly support desk and you’ll be issued a full refund. You have an entire year to request a refund if desired.

Unlike other software that charges you a fee month after month after month, you only pay once for Growthink’s Ultimate Used Car Dealership Business Plan Template and you own it.

You can create an unlimited number of business plans with Growthink’s Ultimate Used Car Dealership Business Plan Template. Once you purchase it, you have lifetime access to use it for any business in which you’re involved, now or in the future.

Yes, Growthink’s Ultimate Used Car Dealership Business Plan Template works flawlessly on both PCs and Macs.

Growthink’s Ultimate Used Car Dealership Business Plan Template is designed for both established Used Car Dealerships and startups.

Yes , you can! Anyone can easily follow our basic instructions and create a great business plan quickly and easily. Plus, my expert team is available to help you if you have any questions.

More Feedback

Even more feedback from the over 100,000+ customers who love growthink’s ultimate used car dealership business plan template & other business plan templates.

“Before Growthink’s Ultimate Business Plan Template, I was really frustrated.

I knew I had to write my business plan in order to start my business. But I kept putting it off…because it seemed like it would be SO hard to do. And I wasn’t really sure how to write my plan.

But with your Template, within a few hours my business plan was done. What a relief! And now the business is really starting to grow.”

“Finding Dave Lavinsky and his Business Plan Template allowed me to take my dream of owning a business and make it a reality.

My investors and mentors have commented that my business plan is the most complete and informative plan they’ve ever seen.

Without you, I wonder if I would have been capable of raising the amount of capital I needed to start my own business and follow my dream.”

Bobby Wiltgen

I bought your business planning template and have been receiving your emails and videos for a few months now…

I just wanted to say thanks for cranking out such amazing work!

You’re doing an incredible job, and I know entrepreneurs everywhere are benefitting from it! Please, keep it up!”

“I want to say how impressed I am with the planning template product I bought from you. It’s saving me a ton of time and effort, and enabling me to develop a new plan so much easier and faster than before.”

Rick Braddy

“From an end user point of view, your template was perfect for putting my ideas on paper.”

Larry Graise

“I think this is a great tool for what you want to do. It is beautifully done!!! I am very impressed!”

Joyce Howze

“I had tried other business plan templates in the past, but yours is better.”

Edward Whitney

“I am in the midst of completing my plan, using your template. I have found it not only user-friendly but thorough (without being overwhelming) and professionally designed.”

Dr. Dwight Lysne

“This is amazing, thank you so much. I researched so many business plan templates and yours is so amazing and easy to follow.”

DeeEllen Jennings

“I didn’t feel I knew enough to write a business plan… But this is a very good and thorough template.”

Brian Serup

“Would you like some more positive feedback?

I sent the business plan, drafted using your business plan template to a trusted friend who is a retired CEO of a Fortune 500 company for comment.

Within 24 hours he got back to me, ‘… very professional presentation…’.”

Susanne Chess

“We review funding requests all the time. Dave Lavinsky is right: most of them don’t address what we need to see and totally miss the point. After recommending this product, we see them pass with flying colors, without fail.”

Marc Kneepkens

“Hi Dave, You are a wonder. Your Financial Business Modelling put in the Excel format is an excellent way to make entrepreneurs understand the basic concept of finances. Your direct involvement and assistance in my case is very much appreciated. “

Khai Levinh

“Thank you for creating a template par excellence. It’s one of the best ‘Business Plan’ templates that I’ve ever come across.”

Kevin Arjel

“Dave Lavinsky really understands how to create compelling business plans and raise capital, and his products succeed in infusing this knowledge.”

John Morris

“I just purchased your business plan template… it is exactly what I need… People think starting a new business in bad times is crazy, me? I say it’s the glue that holds us together! Thanks for your wisdom!”

Debbie Cooke Butcher

“Your business plan template has instilled hope and confidence in me. There are times I thought of giving up my dreams because I just could not deal with things like finances for a start up business.

As an individual, accounting and finances have never been my thing but with this template my dilemma becomes a walk in the park. Thus I am assured of success in business and also when persuading investors.

This template is a dream saver and I guarantee that no one will face disappointment.”

Fatuma Yussuf

“I was so happy to find your business plan template. It was just what I needed to get my new business started in the right direction. The template pushed me to think in areas I had not put much focus on before, and I was able to put all the information in a well laid out plan and have it look very professional.

When I approached the bank and they saw my business plan, they were blown away!

As they began to ask questions about my business and monies needed, I was able to answer without stumbling over my words because I had a well thought out plan. They told me they had never seen anyone so prepared to start a business as I was. This gave me great confidence as well as being able to secure a loan for all that I asked for and more!

Danell Fitzgerald

Please wait while you are redirected to the right page...

How to Write a Used Car Lot Business Plan

How to write a used car lot business plan and template.

There are numerous reasons why the used car lot industry is growing at an impressive rate, spurring the demand for used car business plans and used car business plan templates. 

One driving factor behind the growth in demand is that the prices of used cars have gradually risen over the past few years. As these prices increase, revenues increase, encouraging new business-minded individuals to join the industry. Furthermore, new car manufacturers have faced challenges in satisfying customer needs. As a result, many consumers see used cars as a suitable alternative to buying brand-new vehicles. Regardless of the reasons prompting used car dealers to seek out business plans and templates for their ventures, possessing a well-structured plan is a wise decision. To assist in this endeavor, our used car business expert has provided valuable insights and suggestions for crafting your own used car business plan, financial forecasts, or a business plan template (10/23).

CHECK OUT OUR USED CAR LOT BUSINESS PLAN TEMPLATE!!!

Executive Summary for a Used Car Lot Business Plan.

The executive summary of a used car lot business plan should offer a concise overview of the entire plan, highlighting sections like the funding request, financial forecasts, and the leadership and ownership structures of the organization. Moreover, it is essential to address one or two key success elements common to most used car lots, such as the strategic location or the expertise of the owner. Delving into these topics within the executive summary allows the person crafting the plan to quickly highlight the requirements and qualifications of the car lot, elements crucial when pursuing financing.

Company Information and Location .

For the company information and location segment in the business plan of a used car lot, a substantial focus should be directed toward the location of the car lot. It's a simple truth: a used car lot situated in a remote area will face more challenges than one situated at a bustling intersection. Given the paramount importance of location, our expert in used car lot business planning suggests incorporating maps or images of the intended used car lot site, discussing the strategic significance of this location, and pinpointing major roads or landmarks in proximity to the establishment. By diving deep into the topic of location, a used car lot owner can both illustrate the necessity for a car lot in the selected area and highlight potential advantages tied to the chosen location.

Need Help Writing a Used Car Lot Business Plan?

Call or Text Paul, Doctoral Candidate, MBA.

321-948-9588

Email: [email protected]

Hours of Operation: Monday through Friday, 8 am to 9 pm EST.

Click HERE to Contact US Today!!!

Service Description and Competitive Advantages

The service description portion for a used car lot business plan should be clear and direct. From our observations, this section should describe the kinds of cars or trucks offered at your establishment. Some used car lot proprietors might concentrate on either domestic or foreign vehicles. Some may opt to offer vehicles at a lower price range. Moreover, some may select vehicles that promise the highest profit margins. No matter your strategy, it is essential to discuss the vehicles you aim to offer in depth.

Target Market for a Used Car Lot Business Plan

In the target market section of your used car lot business plan, the emphasis should be on your ideal customer. Some proprietors of used car lots aim their services at younger individuals aged 17 to 24 searching for their first vehicle. Some lots specialize in assisting those facing credit issues. Additionally, establishments like Carmax aim at individuals who are in pursuit of top-quality vehicles at reasonable prices. It becomes clear that a target market extends beyond simple demographics; it can also include specific buyer traits. Therefore, in defining your target market, broaden your scope beyond mere demographics and conceptualize the exact customer type you aim to serve. Subsequently, formulate strategies to cater to this specific group.

Industry Research for a Used Car Lot Business Plan and Template

The industry research segment of your used car lot business plan should commence with a comprehensive examination of the national landscape of the used car lot industry, encompassing its growth trajectories and evolving customer preferences. For example, a brief online search regarding used car lot industry data revealed some noteworthy insights. Specifically, over the previous 12 months, the light-used car industry accumulated revenues of approximately $153 billion. The revenue growth rate over the past five years averaged around 3.2% per year. Yet, industry professionals project this rate to decrease slightly to around 2.6% annually shortly. It's vital to note, however, that these figures do not factor in potential disruptions in new car productions due to microchip shortages, which might substantially boost revenues for the used car industry. These insights are just a few examples of information that might prove valuable when drafting the industry research section of your plan.

Owner and Management Section

In the owner and management section of a used car lot business plan or template, the starting point should be the declaration of the intended legal structure of the organization. Common structures chosen by used car lot businesses include limited liability companies or limited liability partnerships. After establishing this, delve into the profiles of the owner or owners. Within these profiles, it is essential to highlight work and educational backgrounds linked to the used car industry. Any history related to sales or managerial roles should also be presented. With this base, elaborate on the various job roles within the used car lot, such as receptionist, salesperson for used cars, manager, and finance officer. Additionally, incorporating a visual representation, perhaps a diagram, that illustrates the hierarchy within the organization can aid readers in understanding the company's structure more clearly.

An essential addition at the end of this section should be an indication directing readers to your resume, which can be found in an appendix. We have developed a used car lot business plan template that often serves our clients, and this template consistently features a note pointing readers to the client's resume within the appendix. Having your resume accessible in this manner not only substantiates the claims you've made within the section but also satisfies the curiosity of many investors or lenders interested in reviewing your qualifications. This approach effectively serves dual purposes.

Funding Request for a Used Car Lot Business Plan

For a used car lot business plan, the funding request segment should begin with clearly declaring the financial amount required to launch the business. Following this, it's crucial to distribute this funding amount among specific needs, such as working capital, the acquisition of inventory, improvements to the lot, and the purchase of the used car lot itself. An essential consideration for funding in this industry revolves around inventory procurement. While some businesses might lean on credit lines to finance inventory, based on our experience with used car lot business plans, purchasing inventory outright using cash can bolster profit margins. After detailing the allocation for each funding category, provide a comprehensive total at the end, ensuring that it aligns with your original funding request. By utilizing this method, proprietors of used car lots can transparently present their funding requirements while allowing for some flexibility by allocating funds to specific goals.

Financials and Financial Projections for a Used Car Lot Business Plan or Template

Concluding with the financials and projections section of a used car lot business plan, it's imperative, from what we've seen, to begin by specifying the number of vehicles expected to be sold in the inaugural month. Following this, project the average sales price and ascertain the variable expenses related to these vehicle sales. Once this is achieved, subtracting variable costs from the sales revenue gives the gross profit for the month. The subsequent step entails deducting fixed expenses, such as lease payments for the lot, employee wages, commissions, and operational costs from the gross profit, resulting in the net profit for the month. Initiating your financial planning with this fundamental method lays the foundation for a robust business model. This model not only aids in drafting your business plan but also in forecasting sales trends for upcoming months and even years.

Hopefully, these insightful tips and tricks for writing a business plan were helpful. As always, if you need help with a business plan or financial projections, send us an email or give us a call. 

Author: Paul Borosky, Doctoral Candidate, MBA., Author

Owner of: Quality Business Plan  and  Quality Business Consultant.

Date: 10/13/2023

Used Car Dealership Business Plan Template [Updated 2024]

Used Car Dealership Business Plan Template

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

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

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

Used Car Dealership Business Plan Sample

I. executive summary, business overview.

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

Products and Services

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

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

Customer Focus

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

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

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

Management Team

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

Success Factors

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

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

Financial Highlights

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

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

Topline projections over the next five years are as follows:

II. Company Overview

Who is [company name].

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

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

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

[Company Name]’s History

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

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

Since incorporation, the Company has achieved the following milestones:

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

[Company Name]’s Products & Services

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

• Used vehicles
• Parts and repair services
• Finance and insurance

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

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

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

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

Showroom Design

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

• Office area
• Reception Desk
• A waiting area

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

III. Industry Analysis

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

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

Market Trends

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

Market-level trends:

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

Firm-level trends:

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

Customer-level trends:

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

IV. Customer Analysis

Demographic profile of target market.

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

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

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

Customer Segmentation

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

V.Competitive Analysis

Direct & indirect competitors.

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

Premiere Auto

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

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

Randy’s Auto Sales

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

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

Boardwalk Auto Sales

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

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

Competitive Advantage

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

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

VI.Marketing Plan

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

The [Company Name] Brand

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

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

Promotions Strategy

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

Local Publications

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

Major Publications

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

Community Events/Organizations

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

Commute Advertising

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

Customer Loyalty Programs

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

Direct Mail

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

Ongoing Customer Communications

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

Pre-Opening Events

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

Pricing Strategy

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

VII.Operations Plan

Functional roles.

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

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

Service Functions

• Financing and insurance processing
• Auto maintenance and service

Administrative Functions

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

Miscellaneous

• Maintenance personnel

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

VIII. Management Team

Management team members.

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

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

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

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

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

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

• Sales Manager [Number]
• Assistant Office Manager

IX. Financial Plan

Revenue and cost drivers.

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

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

• Inventory and parts
• Salaries and commissions

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

Capital Requirements and Use of Funds

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

Key Assumptions & Forecasts

5 Year Annual Income Statement

5 Year Annual Balance Sheet

5 Year Annual Cash Flow Statement

Comments are closed.

4+ SAMPLE Used Car Business Plan in PDF | MS Word

Used car business plan | ms word, 4+ sample used car business plan, used car business plan: what is it about, types of car dealerships, making a used car business plan, what are the 4 ps of marketing, what is a franchise car dealership, where do used car businesses get their cars to sell.

Used Car Business Plan

Used Car Dealership Business Plan

Used Car Business Plan Annual Cost

Sample Used car Dealership Business plan

Used Car Trader Business Plan

1. executive summary, 2. products and services, 3. market analysis, 4. marketing and sales strategies, 5. financial statement, share this post on your network, file formats, word templates, google docs templates, excel templates, powerpoint templates, google sheets templates, google slides templates, pdf templates, publisher templates, psd templates, indesign templates, illustrator templates, pages templates, keynote templates, numbers templates, outlook templates, you may also like these articles, 5+ sample investment company business plan in pdf.

What do you do when you have tons of spare cash lying around your home or burning a hole in your wallet or expensive jeans pocket? For some people, the…

41+ SAMPLE Unit Plan Templates in PDF | MS Word

As a teacher, you might know about every school policy, the steps to keep classrooms safe for intellectual development, how to set up an organized classroom, and the proposed…

browse by categories

• Questionnaire
• Description
• Reconciliation
• Certificate
• Spreadsheet

Information

• privacy policy
• Terms & Conditions

Car Dealership Business Plan PDF Example

• February 28, 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.

Make sure to cover here _ Business Overview _ Market Overview _ Management Team _ Financial Plan

Dive deeper into Executive Summary

Business Overview

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.

Make sure to cover here _ Car Dealership & Location _ Vehicles & Rates

Market Overview

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.

Key Competitors

Finally, assess the competitive landscape, which spans from luxury car dealerships to budget-friendly lots, as well as online car sales platforms. Focus on what sets your dealership apart, whether it’s through superior customer service, a diverse inventory, or expertise in specific types of vehicles. This section will clarify the demand for automotive sales services, the competitive setting, and how your dealership is poised to succeed in this dynamic industry.

Make sure to cover here _ Industry size & growth _ Key competitors _ Key market trends

Dive deeper into Key competitors

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.

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.

Make sure to cover here _ SWOT _ Marketing Plan _ Timeline

Dive deeper into SWOT

Dive deeper into Marketing Plan

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.

Financial Plan

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

Privacy Overview

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.

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

Related Posts:

• Car Salesman Business Plan [Sample Template]
• Buy Here Pay Here Car Lot Business Plan [Sample Template]
• GPS Vehicle Tracking Business Plan [Sample Template]
• Small Engine Repair Business Plan [Sample Template]
• Mobile Alloy Wheel Repair Business Plan [Sample Template]

Personal Finance

How to sell a car when you still have a loan.

Our evaluations and opinions are not influenced by our advertising relationships, but we may earn a commission from our partners’ links. This content is created independently from TIME’s editorial staff. Learn more about it.

If you have a car you want to sell but have an outstanding auto loan, it’s still possible to sell it. However, there are some things you’ll need to consider before moving forward. For instance, the amount left on the loan and how the title will be transferred are among the important considerations.

Factors to consider before selling

Selling a car with an outstanding loan adds additional layers you’ll need to navigate before completing the sale. Here’s what you need to know.

The car’s value

One of the first and most important pieces of information is the car’s value. This is separate from your equity or how much you owe on the loan . Instead, the car’s value estimates how much money you might receive when selling the vehicle. You can find this through third parties like Kelley Blue Book and Edmunds.

Your car’s current value might be very different from the price you paid when you first acquired it. Most vehicles lose value as they age and have more miles on the odometer.

Your equity in the vehicle

How much equity you have will play a crucial role in the sale—especially whether you have positive or negative equity.

• Positive equity: If you have positive equity, it means the vehicle is worth more than you owe. In this case, you’ll still have money left after paying the loan.
• Negative equity: If you have negative equity, the vehicle is worth less than the amount you still owe. This means you’ll have to pay the difference when selling your car.

Positive equity is ideal since you will pocket some cash after the sale rather than paying out of pocket. However, it’s possible to sell your vehicle in either scenario.

Loan payoff amount

You will need to know your loan payoff amount—the full sum necessary to close the account and transfer the title to a new owner. This figure includes the remaining principal plus any interest and fees. Contact your lender to find out the full payoff amount.

State and local regulations

State and/or local regulations may exist around the sale of vehicles with outstanding loans. Contact your state DMV to ensure you are in full compliance with all regulations when selling your vehicle.

It’s important to maintain insurance coverage on the vehicle until the sale and transfer of ownership are complete . This will protect you against liability and other issues arising from a lack of insurance.

Options for selling a car with a loan

Even if a car has an outstanding loan, there are ways to sell it. Here are some of the best options.

Pay off the loan and sell

This is one of the simplest ways to sell a car with a loan. With this option, you pay off the entire remaining loan balance, obtain the title, and then sell the car. After receiving the title, you could sell it to a local dealer.

While this is an easy way to go, it requires you to have—or be able to get—enough cash to pay the loan. If you have negative equity in the vehicle, you’ll need to be prepared to cover the difference between the car’s value and what you currently owe.

Sell privately and coordinate the loan payoff

Another option is to find a private buyer and work with them and your lender to arrange the sale and pay off the loan. Again, the details will vary depending on your current equity in the vehicle.

However, the general idea is the buyer will pay the sale price to the lender, allowing you and the lender to release the title and transfer it to the buyer. If you owe more than the car is worth, you’ll also need to pay the lender the difference before the sale can be completed.

Trade-in at a dealership

If you are looking to get out of your loan because you want a new car, you can trade it in at a dealership. It’s generally possible to do this even if the car has an outstanding loan.

With this option, you trade in your car when purchasing a new vehicle, and the lender handles the loan payoff. This is perhaps the most convenient option, especially if you are in the market for a new vehicle. In addition, any equity you have in the car can typically be used as a down payment on the new vehicle. If you have negative equity, you can often roll it into a new loan .

However, keep in mind that, if you have negative equity in your current vehicle and roll it into a new loan, you’ll be taking out a larger loan on your new vehicle. In addition, the car’s worth may be valued lower in a trade-in than in a private sale. Consider this option only if you’re comfortable with a loan that will likely result in larger monthly payments and more interest paid.

Sell to a car-buying service

If you’re looking for a convenient way to sell your car with a loan, a car-buying service like Carvana may be an option. The process is generally quick and easy: You get a quote, and the company handles the loan payoff if you accept.

This is one of the easiest ways to sell a car, as you don’t need to find your own buyer. In addition, it’s not a problem if you have negative equity in your vehicle.

The biggest downside is the quote you receive will probably be lower than you could get selling to a private buyer. With these services, you pay for convenience by accepting a lower offer.

How to sell a car with a loan

Selling a car with a loan doesn’t have to be difficult. These tips will help ensure the sale goes through without any hiccups.

Communicate with your lender

First, reach out to your lender and ask about selling a car with an outstanding loan. Some lenders might let you sell the car and pay off the loan with the proceeds directly. On the other hand, some lenders may have a more complicated process. Ask your lender what its requirements are so you have this information in advance.

Handle the loan payoff

The loan payoff is one of the most crucial parts of selling a car with a loan. Depending on how you decide to sell, it might require careful coordination between you, the lender, and the buyer.

If you don’t already know the payoff amount, contact your lender and request it. Then, determine the best payoff method. For example, if you're selling privately, the buyer may be able to send payment directly to the lender for the remaining loan balance. If you have positive equity in the car, you’ll receive the difference between the amount the car is worth and the loan balance.

Alternatively, the buyer can send two payments: one to pay off the loan balance and one for your equity in the vehicle. For instance, if the remaining loan balance is $5,000 and you have $7,000 of equity, the buyer could send $5,000 to the lender and $2,000 to you.

Transfer the title

The title should be transferred to the new owner to reflect their ownership of the vehicle. However, understand that the title can only be transferred after the loan is fully paid off. Coordinate with your lender to determine how the title will be transferred to the buyer once the loan has been paid in full.

What happens to the loan when you sell your car?

When you sell a car with an outstanding loan, the loan doesn’t just disappear. There are often several steps to ensure the sale goes smoothly and the loan is paid off.

As mentioned, the loan will typically need to be paid off during the process, be it by a private buyer, dealer, or car-buying service. Once the loan is paid off, the lender will release the lien on the vehicle. This step is very important because the lien represents the lender’s interest in the vehicle as collateral for the loan. The title can’t be transferred until the lien is released.

Once the lien is released, the title is transferred to the new owner. The exact details of the title transfer may vary by state and lender. If you are making a private sale, you might need to receive the title from the lender and then transfer it to the buyer. With a dealership sale, the dealer may facilitate the process directly with the lender.

Tips for a successful sale

We’ve covered most of the key considerations for selling a car with a loan, but we have a few other tips that will help you ensure a successful sale.

Get out the word

Marketing your car effectively is necessary to get the best price, especially if you plan to sell to a private buyer. Use multiple platforms to advertise your car, such as online marketplaces, social media, and local classified sections. Provide clear, high-quality photos and a detailed description of the vehicle.

Be transparent with buyers

Transparency is important when communicating with potential buyers. Don’t try to hide the fact that the vehicle has an existing loan. If you find the right buyer and price the vehicle fairly, an existing loan shouldn’t be a deal-breaker. Clearly communicate with potential buyers how you will handle the loan payoff and title transfer.

Remember that all sales are negotiable, and you shouldn’t shy away from getting what your car is worth. Before communicating with a potential buyer, have a minimum number in mind. You can then negotiate with them, resolving not to accept any offers that are below your minimum.

You should also consider your car’s market value and the payoff amount. If you have negative equity, for instance, you may not be able to go as low as you could if you had positive equity. After all, having negative equity means you may need to pay out of pocket for the remaining amount. Thus, the lower the offer you accept, the more you may have to pay out of pocket.

TIME Stamp: Coordinate carefully

Selling a car with a loan is possible, but you’ll need to plan and coordinate carefully. First, know if you have positive or negative equity and the loan payoff amount. You have options like paying off the loan yourself, selling privately and facilitating the loan payoff, or trading in the vehicle at a dealership. However, it’s important to communicate clearly and transparently with the buyer and lender to ensure a successful sale and transfer of title.

Frequently asked questions (FAQs)

How do i sell a financed car with negative equity.

The main point is that the loan must be fully paid off before the title can be transferred. If you owe more than the car is worth, you’ll need to pay the difference out of pocket. For instance, if the car is worth $8,000 and you owe $10,000, you may need to pay the lender $2,000 before the title can be transferred to the new owner.

Can you transfer a loan to another person?

You generally cannot transfer a loan directly to another person. If the buyer wants to finance the purchase of the vehicle, they can take out a loan in their name and use the money to pay for the sale. That money will be used to pay off your loan, and the buyer will be left with a loan on which they will make monthly payments.

Can I sell my car with a loan?

Yes, it’s possible to sell your car with a loan. However, for the sale to succeed, the existing loan must be paid off in full before the lender can release the title to the new owner. This is true whether you are selling to a private buyer or a dealer.

The information presented here is created independently from the TIME editorial staff. To learn more, see our About page.

Parking and Transportation

Fleet services newsletter, may 2024, wex card’s expire on 5/31 – time to pick-up your new card .

WEX fuel credit card swaps have been slow so far, we still have a lot of new cards to give out. If you have not yet picked up your new card please make a plan to do so. All you need to do is bring your old card to our office and we will swap it out. The current cards expire at the end of May. Cards can be exchanged Monday through Friday from 7:00 AM to 6:00 PM.

New Decals for University Healthcare Vehicles

As part of the  new branding initiative of UI Healthcare, Fleet Services will be updating the decals of all healthcare vehicles. The process began on May 6 th , is ongoing, and should be complete in the next 6 months. The plan is to swap for the new branded decals at each vehicle’s next service appointment. 

Who is Considered a Pedestrian in Iowa?

Current law in Iowa defines a pedestrian as a person specifically on foot and does not include people in wheelchairs, riding scooters/skateboarding, or cyclists. Lobbyists and advocacy groups like, AARP Iowa, and the University of Iowa Injury Prevention Research Center pushed to make the language of the law more inclusive. Late last week Governor Kim Reynolds signed a new law that changes the meaning of a pedestrian. The new definition adds some language and now includes “ a person using a pedestrian conveyance”   in addition to a pedestrian on   foot. A pedestrian conveyance is any human-powered device a pedestrian may use to move or move another person. It also includes electric motored devices as long as they produce less than 750 watts. The bill goes into effect on July 1st.  Check out the full article from CBS .

Driving in a Tornado – How to Stay Safe

Never try to outrun a tornado. According to AccuWeather, tornados can travel very quickly and do not follow road patterns. If you are driving and a tornado develops it is best to try to find shelter in a sturdy building. When there is no shelter nearby, experts recommend staying in your car, secured using your seat belt, putting your head down below the window, and covering your head with your hands or a blanket if you have one. If you can safely get to a low-lying area such as a ditch or ravine, basically lower than the roadway, then exit the car and lie down in the area and cover your head with your hands or use a protective covering like a blanket or tarp. Also avoid taking shelter under an overpass. The winds are higher in these openings and flying debris can still get to you. Check out the full article on tornado safety . 

Real ID – New Deadline to be Enforced

There is a new deadline for Real ID, it is now May 7, 2025. Just a little less than a year away. If you fly commercially or need access to federal facilities you will need a REAL ID or another federally approved ID like a passport. Take a look at the Iowa DOT’s info page . Please note, it can take up to 30 days to receive your REAL ID in the mail so plan ahead.

Fleet Services Severe Weather Protocol

When severe weather pops up and the sirens go off, we lock our doors and evacuate to the CAMBUS Maintenance Facility until we get the all-clear. If you have a reservation scheduled to pick up during a severe weather event, please call our office ahead of time. Our phones will be forwarded to a manager’s cell phone, and they will give you instructions to get your vehicle. We will also leave a sign on our door, so you know where we are.

Honest Mikes Used Cars

Vehicle sale season is on-going and we have a nice variety of vehicles at auction now and coming soon. Check out our GovDeals auction page to view what we currently have listed.

Fleet Factoid

According to Consumer Affairs, Louisiana is the state with the most incidents of road rage. To come up with their ranking, CA analyzed data on aggressive driving, rates of speeding/careless driving, tickets, accidents, fatalities, and traffic incidents involving gun violence, and assigned each state a “Road Rage” score. Iowa was ranked 39 th and New Hampshire was 50 th , having the nicest drivers. Check out the full article from Consumer Affairs . 

View prices for your travel dates

• Excellent 6
• Very Good 11
• All languages ( 25 )
• Russian ( 25 )
• English ( 0 )

Own or manage this property? Claim your listing for free to respond to reviews, update your profile and much more.

ELEKTROSTAL HOTEL

Car Dealership Business Plan Template

Written by Dave Lavinsky

Car Dealership Business Plan

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

Download our Ultimate Car Dealership Business Plan Template here >

What Is a Car Dealership Business Plan?

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

Why You Need a Business Plan for Your Car Dealership

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

Source of Funding for Car Dealership Businesses

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

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

Finish Your Business Plan Today!

Your business plan should include 10 sections as follows:

Executive Summary

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

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

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

Company Analysis

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

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

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

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

Include answers to question such as:

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

Industry Analysis

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

While this may seem unnecessary, it serves multiple purposes.

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

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

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

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

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

Customer Analysis

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

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

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

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

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

Finish Your Car Dealership Business Plan in 1 Day!

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

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

Competitive Analysis

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

Direct competitors are other car dealerships.

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

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

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

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

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

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

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

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

Marketing Plan

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

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

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

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

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

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

Building Trust

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

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

Referrals and Testimonials

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

Transparency

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

Taking Your Time

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

Operations Plan

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

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

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

Management Team

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

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

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

Financial Plan

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

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

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

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

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

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

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

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

Car Dealership Business Plan Summary

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

Download Our Car Dealership Business Plan PDF

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

Car Dealership Business Plan FAQs

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

Where Can I Download a Car Dealership Business Plan PDF?

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

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

OR, Let Us Develop Your Plan For You

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

Other Helpful Automotive Business Plan Articles & Templates

View prices for your travel dates

Reviews we perform checks on reviews. tripadvisor’s approach to reviews before posting, each tripadvisor review goes through an automated tracking system, which collects information, answering the following questions: how, what, where and when. if the system detects something that potentially contradicts our community guidelines , the review is not published. when the system detects a problem, a review may be automatically rejected, sent to the reviewer for validation, or manually reviewed by our team of content specialists, who work 24/7 to maintain the quality of the reviews on our site. our team checks each review posted on the site disputed by our community as not meeting our community guidelines . learn more about our review moderation..

• Excellent 18
• Very Good 9
• All languages ( 43 )
• Russian ( 37 )
• English ( 4 )
• German ( 1 )
• Italian ( 1 )

" DIR: West; bigger nice evening sun but louder due to main street DIR:East; Quiter, very bright in the morning if sun rises "

Own or manage this property? Claim your listing for free to respond to reviews, update your profile and much more.

APELSIN HOTEL - Reviews, Photos