Tips for Starting a Car Dealership

Starting your own car dealership is a great move to make. After all, cars are never truly out of fashion and simply evolve in make and popularity as the years go by. Consequently, you’ll constantly be involved in the middle of a very busy, and lucrative, industry.

However, there are those that argue that the industry is on the brink of decline and that dealers are now offering discounted cars to compensate. Of course, a struggle is expected in the line of business you enter, especially if you’re just starting! Consequently, here are some top tips for starting your very own car dealership!

Honesty and Integrity

Dealers can get a bad reputation, as many willingly flout the prospect of lawful and ethical sales. Unfortunately, some are willing to take in and sell faulty vehicles, as well as offer cars that have a history of illegal activity. These kinds of dealers don’t have a moral code or any kind of principled boundaries. Put simply, many dealers have only one rule; to make money fast no matter what.

Still, much of being a good car dealer comes down to attitude. You need a positive outlook and an authentic willingness to help the customer. After all, their purchasing of a car is a serious investment for them to make, one that will live them for the next few years. Your customers will be looking to spend a lot of money, and it’s down to you to help them spend it wisely. Don’t betray their trust and be a good person.

Research and Knowledge

You can’t call yourself a true dealer if you don’t know what you’re selling. Therefore, knowledge of your cars is key, and you should be able to answer any questions a customer throws your way; where has the car come from, how was it made, is it used or brand new? This wealth of expertise is why they’ll visit you, and not another dealer.

Additionally, you need to inform yourself of your stock for your own sake, rather than just to please your customers. To do so means you can deal safely and securely without any nasty surprises, giving you greater confidence and security. All your cars should be legitimately acquired and sold, and you can only do this with a bit of know how!

Image and Location

The best businesses are conveniently found in a good location and traveled to. Being out in the open with nothing to hide is a great signifier of trust. Remember, you’re not a back-alley dealer selling dodgy products; you need to be out on display, lauding your products for all to see. If nothing else, it shows you’re a trustworthy and open dealership.

Remember, those looking for a car may not even have one, so it makes very little sense situating your dealership in a place that can only be accessed by car. Remote locations also rob you of the chance to build up a reputation. Consequently, by taking center stage in the middle of a town or city, potential customers are more likely to grow used to your presence and be more willing to do business with you.


Starting a business is one of the hardest part in establishing a business. To make it somehow easier for other businessmen, they do extensive research, years of planning and consider all the possibilities, including the advantages and disadvantages of the business they will be venturing in. No matter what business you do or you are planning to do remember to read and try to follow some of the tips above which may help you in starting your car dealership business.