How To Start a Car Dealership Business?

Being a car dealer is a dream of many people interested in motorization. You can spend a whole day just talking about your passion and finding suitable machines for your customers. Additionally, you can become your own boss, so no one will tell you how to do your job. However, if you are serious about it, there are things you need to know.

According to HyreCar, one of the most important things in the car dealership business is marketing. In this article, you will find out the best marketing strategies for car dealerships, what are the best skills you can have, which documents you will need, and many more. Read on and make your dreams come true!

  1. Take care of your marketing

If you want to have a successful car dealership business, you need to start with how you will promote it. Make sure that you have a website where people can check your inventory and contact you directly. Also, you can add your business to Google Maps and social media sites like Facebook or Twitter. These platforms allow you to communicate with your clients and make them feel comfortable with your services.

  1. You need to have the right skills

You might think that dealerships don’t require any special skills, but you are wrong. Communication is one of the most important things in this job, so make sure that you are confident speaking with people and you have what it takes to convince them to buy your products. Another important skill is a legal knowledge. You will need it when dealing with customers or negotiating prices with suppliers. The last important skill is accounting. It’s good to know how to balance your books and make some projections about your business’ future.

  1. Learn about the niche you want to work in

There are numerous niches in the car industry, so it is essential to choose wisely which one suits your interests and skills best. There are different niches, such as luxury vehicles and sports cars, classic cars, and others. Some of the niches have their own associations where you can become a member if you want to be successful. Before you decide for a niche, make sure that it has enough clients for you to succeed.

  1. Make sure that you have the necessary documents

There are many documents that every dealership needs. The first one is a license. You can apply for it at your local DMV office or on the Internet. Once you get it, make sure that all the information on it is correct and up-to-date. A business license is also important, since it proves that you operate legally and under a certain name. Also, if you want to have a car rental service, make sure that you have a certificate from the state authorities proving that you can rent out vehicles legally. Furthermore, if you plan on selling new cars, you will need a Manufacturer’s Certificate of Origin (MCO). It’s a document proving that a vehicle was manufactured by an authorized manufacturer. If you buy used cars, or even if you build them yourself, you will need a Vehicle Identification Number (VIN). This number is proof that the vehicle was manufactured in accordance with the law. You can get all these documents from your local DMV office or from a certified dealer of your country.

  1. Find suppliers

Suppliers are very important in any car dealership business. They provide vehicles for sale, spare parts, tools, tires and so on. When choosing suppliers, make sure that they deliver high-quality products for reasonable prices. If possible, find out what other companies they cooperate with, as this will give you an idea about their reputation and reliability. A good supplier should be willing to negotiate prices and conditions with you if needed. If you want to start importing vehicles on your own, be prepared for some difficulties and restrictions regarding the laws of customs and taxes. Also, if this is your plan, make sure that the car was actually made by the manufacturer it claims to be.

  1. Use social media platforms

Social media platforms are the best way to promote your business and increase your sales volumes significantly. You can use them not only for marketing purposes but also to gather feedback from potential clients and improve your customer service approach in general. According to 2015 statistics by eMarketer, there were 1.79 billion social media users worldwide and this number is constantly growing each year. If possible, create accounts on social media platforms like Facebook, Twitter or Instagram and use them for increasing your client base every day. However, as we mentioned before with Google Maps, make sure that your website is visible to people who search for your business online. You don’t want people to see that your site does not exist or there is no information about your business at all!

  1. Hire a good team

As we have already mentioned, people are the most important thing in your business. Without them you will not be able to succeed. If you want to succeed as a car dealer, make sure that your workers can do their job well. You need a sales person who can deal with clients and find the best deals for them. Also, make sure that your workers are friendly, polite and will help clients out with any needs they might have. Workers should be knowledgeable about the products they sell and they should be able to provide necessary information about the machines to potential customers. Hiring employees is very important, so make sure that you choose wisely because they will represent your business at all times.

  1. Finance your business

Financing is a crucial matter for any business. It doesn’t matter if you want to start a car dealership or any other type of business. Most companies need some investment to start working properly, and a car dealership is not an exception. Before you open up your business, make sure that you have enough money to start it. You will need it for rent, for office equipment, for salaries, and many other expenses. The good news is that there are several financing options available on the market, so you can try different ones until you find the one that suits you best.


Starting a car dealership business is not an easy task but if done properly it can be very rewarding and enjoyable. Of course there are risks involved but if you do everything properly there is nothing that should stop you from being successful!

Emily Muelford
Emily is a British writer whose love of car culture is augmented by a fascination with both the European and American automotive markets. Her perspective is uniquely fish and chips.