Opening your own car dealership : the guide

Every year, the automotive market expands with the arrival of new models. These mostly happen despite the differences in their features to find buyers. There is, so to speak, an opportunity to seize when opening a car dealership, as demand is high. But, how to achieve such a project? It is to this question that we propose to answer through this article. It presents the various steps to follow to open its own car dealership .

Market research

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The dealer of a brand is somehow the latter’s ambassador to its target. First and foremost, it is necessary to ensure that the proposed vehicle models are suitable for the vehicle’s needs. It is in this that market research is important. It not only identifies customer needs, but also to assess future market trends. Therefore, the entrepreneur can make well-informed investment choices. He will also be able to choose the location area of his showroom. This is therefore a crucial step to take before obtaining the siret number or all other administrative formalities.

Choosing your car dealership model

The option is offered to the developer to associate their property with one or more car brands. The possibility of entering into an exclusive partnership with large brand being rather weak, it is advisable to forge a reputation with lesser known models. This increases the reputation of the establishment offering it several advantages. The latter can, by way of example, obtain a large geographical area to exploit.

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remembered, however, that the car dealership also involves the management of a maintenance service. These are all elements that require significant investments. In the absence of building its car dealership It should be from scratch, it is possible to buy a centre in service.

Choosing location

The concession contract imposes on the establishment a geographical area of exploitation. It is therefore based on this that the choice of the distribution site will be made . Consideration should also be given to the number and nature of the cars to be exhibited (new or used). The future dealer therefore has the choice between zones

commercial and industrial: each with advantages and disadvantages. It is therefore necessary to analyze all the factors in order to choose correctly.

Choosing your legal status

The status of the dealer is quite distinct from that of the industrial merchant. He’s not a commercial agent either. Its legal status therefore makes it possible to clarify its administrative obligations with regard to the management of the activity. The legal status also guarantees the protection of property and sets the tax charges to be paid. For information purposes, it should be noted that most authorized vehicle distributors operate as LLC .

Recruit staff

In a car dealership , several employee profiles are required. It is necessary Mainly:

  • Mechanical engineers (for maintenance work);
  • Sales agents for hospitality and sales;
  • Administrative staff for paperwork management .

In addition, the material requirements for the effective management of the institution are added. It should also not be forgotten about the stock of the car without which the establishment cannot bear its name.

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