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, you may also like these articles, 35+ sample business action plan in pdf.
Business action plans can come in many shapes and sizes. They can also serve several purposes. There are simple and straightforward plans but there are also longer and more…
20+ SAMPLE Service Improvement Plan in PDF | MS Word
Many experts defined service improvements as the combined efforts of everyone to facilitate changes which leads to better outcomes, better system performance and better professional development despite the theoretical…
browse by categories
- Terms & Conditions
- Business Templates
- Sample Plans
FREE 4+ Used Car Business Plan Samples in PDF | DOC
For most people, buying a used car can be a quite scary venture. Owning a car is already a huge privilege and maintaining it does require a lot of money. Of course, no one wants to waste all of their money having bought a ‘lemon’ car. That’s why it’s the job of good and respectable business owners such as yourself to provide quality service and products to your customer. Making sure that they get their money’s worth, further establishing a recurring sale and building up a good reputation.
Used Car Business Plan
4+ used car business plan samples, 1. used car business plan, 2. used car dealership business plan, 3. used car business plan annual cost, 4. business plan for used car, 5. used car trader business plan, what is a used car business plan, elements of a used car business plan, who reads a business plan, what are the five elements of a business plan, why do they call it a ‘lemon’ car.
Businesses are not simple entities to manage, even much less to start and maintain one. It’s a chore to keep track of everything that your business covers, from the models of the cars that you sell and their overall condition, to making sure that you are making sales by keeping your products on perfect shape and running condition. This is why creating a proper layout or a comprehensive plan is very important especially for businesses like these. A layout helps keep everybody that is affiliated with the business, managers and supervisors, on track for everything else that may be encountered during the overall duration of the business.
A used car business plan is a very good tool for this. It is a largely important document that any business, from startup to already well established ones, need to have a guideline or a roadmap that the business will follow to make sure that their goals are achieved. Operating without one is not really a good idea, since those who do operate without a business plan, just doesn’t last very long. Most business plans cover a specific timeframe like a month or a year, but in this case, the used car business plan that you will be making will cover the entire run of your business, from start, to success. First, you’ll need tp properly get acquainted with the document.
To do that, check out these used car business plan samples that we have listed down below. After getting familiar with the document, you can then use these samples as a guide or even as a template to develop your own business plan.
Size: 322 KB
Size: 12 KB
A business plan is a written document that describes how a business would define its goals and objectives and what steps the management is willing to take in order to achieve those goals. A business plan lays out a comprehensive roadmap for the whole company to follow that is derived from the standpoints of its different departments, from marketing, financial, to operational. Business plans are very important documents that’s usually used to attract prospective investors even before the company has established a significantly impressive track record.
Although it is arguably more useful for new companies and businesses, every business owner should be able to develop a well written business plan. This will give them something to review and periodically update to see how close they are to their goals and how the circumstances that they have been working with has changed. A good business plan should be able to outline all the projected and estimated costs of a venture and predict the pitfalls the management will make.
Even with competitors in the same industry, it is still very unlikely for business plans to be identical with one another. This is because despite working with almost the same circumstances, different businesses tend to have their own way of dealing with company issues and challenges.
The length and scope of a business plan varies depending on the nature and coverage of which the company decides to cover. Though it is fairly usual for all information to fit into a 15 to 20 page document. Although no two business plans are alike, they do work with almost the same elements. These common elements of a business plan will be discussed in more detail below.
- Executive summary The first section of a business plan should outline what the company is and include information related to the company’s mission-vision values, company leadership, employees, operations, and general location. Executive summaries should talk about what the business is, the nature of the business, and all other necessary information.
- Products and services This is where the company should highlight the products that they offer. It should include pricing, product lifespan, and other customer benefits like insurance and maintenance. Other factors that you can include here is the model and type of used cars that you are selling, manufacturing and production processes, and proprietary technology.
- Market analysis A company needs to have a crystal clear idea of the target audience and their respective demographics. It will enable them to outline who or what the competition is and will give you a better idea on how to stay on top of the local market. It will also describe the expected consumer demand and how difficult it would be to take advantage of the demand.
- Marketing strategy This next section should describe how the company will attract the customer base and how the management intends to keep it. It should also talk about how it intends to reach the consumers by giving an outline of a clear distribution channel, including advertising campaigns, marketing campaigns, and through what mediums will those campaigns be disseminated.
- Financial planning The company has to include its financial planning to further attract the attention of the business plan’s readers. Financial statements, balance sheets, tax reports, etc.
- Budget Every company has to have a proper well established budget in place. It includes costs, staffing, manufacturing, development, marketing, and other business related expenses.
Individuals who work in and around the company are given an outline or a summarized copy of the business plan. For outsiders however, investors, lenders, suppliers, clients, and other executives, they are presented with the entirety of the plan.
- Situation Analysis
- Product position
- Setting objectives
- Overall strategy
Back in 1960, an ad from Volkswagen cemented the term in our vocabulary by putting the word ‘lemon’ under a Volkswagen Beetle in an advertisement. The term was used by Volkswagen in an attempt to highlight their rigorous testing process but somehow that image of a bad car being a ‘lemon’ stuck in our modern vocabulary.
One very important thing to remember about business plans is that the document is not supposed to be a static document. It should be ‘live’. Meaning that the document is and should always be susceptible to change to adapt to the changes in the company itself. Think of it as an entity changing and evolving together with your company.
Free 10+ advertising agency business plan templates, free 8+ sample bill of sale for vehicle, free 8+ car bill of sale samples, free 8+ printable bill of sale samples, free 8+ sample automobile bill of sale, free 8+ sample auto bill of sale, free 7+ sample motorcycle bill of sale, free 7+ sample auto bill of sale, free 7+ sample car bill of sale, free 6+ sample auto purchase agreement, free 14+ travel business plan templates, free 10+ sample strategic business plan, free 10+ bill of sale samples for vehicle, free 9+ bill of sale samples, free 9+ printable bill of sale samples, free 5+ sample oil filter cross reference chart, free 5+ sample car bill of sale, free 31+ business plan templates, free 12+ sample vehicle bill of sale.
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
- 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.
- 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
- 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.
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.
- 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
- Car Salesman Business Plan [Sample Template]
- Buy Here Pay Here Car Lot Business Plan [Sample Template]
- Tire Retreading Business Plan [Sample Template]
- Mobile Oil Change Business Plan [Sample Template]
- Window Tinting Business Plan [Sample Template]
- 7 Smart Ways Car Dealers Make Money
- How to Get a License to Buy Cars at Auction
Academia.edu no longer supports Internet Explorer.
To browse Academia.edu and the wider internet faster and more securely, please take a few seconds to upgrade your browser .
Enter the email address you signed up with and we'll email you a reset link.
- We're Hiring!
- Help Center
Business Plan : Bentley car Dealership
: Would like to express my deepest appreciation to all those who provided me the necessary Information to complete this report. A special gratitude I give to Tarik Adnan & Sumon Akash whose contribution in stimulating suggestions and encouragement, helped me to coordinate my project especially in writing this report.
- We're Hiring!
- Help Center
- Find new research papers in:
- Health Sciences
- Earth Sciences
- Cognitive Science
- Computer Science
- Academia ©2023
Used Car Dealer Business Plan Template Sample Pages
Thank you for viewing our used car dealer business plan template sample pages. This used car dealer business plan was written specifically for the used car industry and contains a full table of contents, example text, red instructional text, and references. Use this business plan template as a basis/foundation to create your own business plan upon.
Please scroll down below to view sample pages of the exact used car dealer business plan template you will be receiving.
Or Click here to learn more about this business plan template.
To learn more about this used car dealer business plan template click here.
- Used Car Dealer Business Plan Template(Microsoft Word) – $47.00
- +Add Excel Worksheet (Recommended) – $35.00
- +Add Funding Package Pitch Deck PowerPoint + 4 funding eBooks – $55.00
- +Add Raising Capital Documents Bundle. 115 documents – $85.00
Add these other Do-It-Yourself items as needed: (Financial worksheet in Excel is highly recommended)
Used Car Dealer Financial Worksheet in Microsoft Excel an add-on option (highly recommended) to calculate your finances an add-on option. Investors love numbers and this excel worksheet will allow you to enter financial data specific to your business to produce proforma financial statements for use in your business plan. These Excel worksheets (Set-up, Start-up, Sales, Headcount, Inventory, Operating Expenses, Capital Budget, Equity & Debt, and Amortization Schedule) contain instructions, questions for you to answer, and boxes (cells) for data entry. Cells in which you are to answer questions or enter data are yellow. Purple cells contain formulas that will be calculated automatically.
Used Car Dealer Funding Package an add-on option (A must have if actively seeking investment) Includes a Microsoft PowerPoint slideshow template “Pitch Deck” to show lenders and investors your concept at a glance. It includes 12 slide used car dealer images with instructional text for you to insert your specific business information into.
This funding package also includes the Funding eBook bundle to educate you on your funding options and how to best present your business concept. These 4 eBooks guide you through individual interventions, second-party arrangements, corporate funding options, government interventions, managing business cash-flow, quick start funding overview, exit strategy, common mistakes to avoid when pitching your concept and much more.
Used Car Dealer Business Startup and Raising Capital Documents Bundle an add-on option . 115 documents. (Investors want to know you are prepared. Show them you are with these professional business documents.) This 3 pack of business documents covering business assessment, startup and raising capital topics includes documents such as: Business Plan Guidelines, Strategic Planning Checklist, Trend Analysis Checklist, Executive Summary Template, Market Study Outline, Business Analysis Worksheet, Board of Directors Documents, Confidentiality Agreements, General Administration, Basic Financial Checklist and much more 115 documents in total.
Click here to view more details of this used car dealer business plan template.
Thank you once again for viewing our used car dealer Business Plan Template Sample Pages. This template should best be used as a basis to create your own professional business plan with.
Unlike other on or offline business plan “software” that just inserts your information into a generic template this used car dealer business plan template was written specifically from the ground up for the used car industry.
- Business Plan for Investors
- Bank/SBA Business Plan
- Strategic/Operational Business Plan
- L1 Visa Business Plan
- E1 Treaty Trader Visa Business Plan
- E2 Treaty Investor Visa Business Plan
- EB-1 Business Plan
- EB-2 NIW Business Plan
- EB-5 Business Plan
- Innovator Founder Visa Business Plan
- Start-Up Visa Business Plan
- Expansion Worker Visa Business Plan
- Manitoba MPNP Visa Business Plan
- Nova Scotia NSNP Visa Business Plan
- British Columbia BC PNP Visa Business Plan
- Self-Employed Visa Business Plan
- OINP Entrepreneur Stream Business Plan
- LMIA Owner Operator Business Plan
- ICT Work Permit Business Plan
- LMIA Mobility Program – C11 Entrepreneur Business Plan
- USMCA (ex-NAFTA) Business Plan
- Franchise Business Plan
- Landlord business plan
- Nonprofit Start-Up Business Plan
- USDA Business Plan
- Cannabis business plan
- Ecommerce business plan
- Online boutique business plan
- Mobile application business plan
- Daycare business plan
- Restaurant business plan
- Food delivery business plan
- Real estate business plan
- Business Continuity Plan
- Buy Side Due Diligence Services
- ICO whitepaper
- ICO consulting services
- Confidential Information Memorandum
- Private Placement Memorandum
- Feasibility study
- How it works
- Business Plan Examples
Used Car Dealership Business Plan Sample
Buy and Sell Cars Business Plan for starting your own Dealership
Almost every individual uses a vehicle for their personal usage or business purpose. If you own a car, then you have to maintain it as well. Consequently, consumers require seeking out the car traders to purchase vehicles and get them serviced. It is suggested to have the knowledge of the investment required in opening and managing a car dealership, though, may need huge investment. You have to think about the process religiously before thinking to open a vehicle franchise business plan .
Starting the used vehicle franchise has become an extremely difficult process because the official regulations imposed an array of unique restrictions, as well as the number of various resources from insurance & licensing to asset values, has considerably increased. The success in any work is entirely based on the detailed earlier research and grounding to ease the hassle of loss and increase the probability of success. For this reason, people are seeking for the best and perfect work guide to get success soon. Various ways and techniques are available to reach your goal, but the specially developed car dealership business plan makes the task much simpler and efficient. This is significant to create a sample for your work proposal to avoid the unwanted errors.
About Car Dealership Business Proposal
Now, many used vehicle franchise owners use different types of business approaches, but they fail to reach their goal due to a few reasons. To overcome the drawbacks, they look for an outstanding solution. The used vehicle franchise business policy is the best solution for the customers who would like to be on an exact course for victory in this profitable industry. Along with this, the user vehicle franchise policy effectively addresses each and every aspect in order to get success and reach the desired work goal within short time duration. Along with this, it assists people to start a used vehicle franchise without facing any difficulties. These are a few of the used car dealership policy’s highlights which attracts lots of users towards it and encourage them to create a sample of work proposal before creating an original work proposal.
Guide to Starting a Used Car Dealership
People who would like to open a used car dealership; they should carefully make the best and effective proposal for their car distributorship trade. A proper strategy brings them an overall idea about a used car dealership area. It’s significant to perform some essential tasks before developed a business proposal for a car dealership.
Accessing the Users’ Requirements
The initial step in every field is to check if there is any requirement for the service or product. When you are sure about the requirements, you need to make sure that your organization would fulfill a few of clients’ requirements. This kind of market study would surely assist you to find out if there is any requirement for a freshly used car dealership in the present era. Along with this, you should also understand who your potential client is. When you find your potential buyer, you can think of opening your firm to satisfy their requirements.
Choose the Best Dealership Type
There are various kinds of car dealership trade ideas available, so you should carefully select the best one based on your individual requirements. Choosing the right franchise type isn’t an easy task because there are numerous choices available to select. To avoid the inappropriate one, you should check the positive and negative points associated with purchasing and dealing the fresh and used vehicles both. These are the most essential aspects which assist you to select the suitable type of distributorship easily and this way you would be able to employ the best proposal sample. While speaking about used vehicle franchise business, it’s a highly preferred professional idea, which you can utilize effectively. If you would like to get success in this particular field, you would require developing an outstanding business proposal car dealership.
Strategize Your Financial Sources
The normal vehicle franchise firm might need a huge amount of cash to start and operate it both. Every individual is well-known that financing the vehicle franchise is a big commitment. There are various types of financial sources available now, but only a few fulfills your franchise requirements. These are the most significant considerations that not only assist you to create a sample for your used vehicle franchise policy, but it also assists you in creating a precise business proposal for a car franchise in an easier manner. By using these exceptional and most essential guidelines, you may easily create both the sample and actual proposal in an outstanding manner.
Highlights of Dealership Business Strategy
If you would like to open a vehicle franchise, you should have to come up with a properly-written mission statement, advertising, projected financials & operating strategies. These are the most useful aspects which assist you to start and maintain the car distributorship of various kinds. The professionally designed and an effective used business plan dealership cover an extensive range of useful factors. These are the most attractive features of used car dealership plan that make it as essential documents which can easily attract the potential investors, including traditional lenders, equity investors, and others towards the policy. The sample of vehicle franchise strategy also provides the similar benefits of actual trade plan, so you can utilize it without any hesitation. If you desire to know about the major factors covered by this proposal, you can read this following passage carefully.
Many firm vendors face some difficulties while choosing the best inventory source, because there are numerous choices available to select that including rental and insurance companies, trade-ins, vehicle auctions or anything. Most of the savvy professional individuals will set up various sources to keep their inventory flowing constantly. Providing clients an excellent range of vehicles and trucks is an excellent technique for increasing your sales.
All types of vehicle franchise organization require a huge amount of free area for a trade building and an auto inventory. The zoning laws will differ from a location to another location, so you may immediately make an outstanding business plan for used car dealership. The location finds out clearly how much a dealer should spend in renting or purchasing a property. While speaking about the prime locations, these are the highly expensive as they are present in the well-connected locations.
The charges of opening a used car dealership are at its lowest while the car distributorship is opening the record or rented is tiny or includes cars on delivery. Though the predictable initial investment may be huge while the distributorship is bought in a greater value region of the city, expensive cars are purchased, as well as a huge shop is constructed. Other expenditures consist of a surety bond & authorizing. While speaking about surety bond, it’s a pledge to pay some charges for different negative occurrences which can happen. They contain supplying inappropriate titles, several mechanical failures which may create injuries or even death, vehicles traded with due liens, vehicles traded without revealing re-claim record, and further complex events which create the customer problems or any type of damage. The charges of surety bond may obtain quite bigger if any applicant never has the sterling credit score.
In fact, if the vehicle franchise can help users with easily financing anyway, this would be simpler to have more sales. Or else, users should find their individual financial that will create some individual to visit elsewhere. You have to indicate all these important factors in your sample.
If you would like to how to start a car business, you should understand the significance of getting a short-term financial assistance to buy inventory. Along with this, you may also have a clear idea about the floor preparation, that it must be added to your used car dealership plan. Naturally, the best floor plan allows you to purchase lots of vehciles on credit. Many lenders provide the independent car dealers with essential financial assistance.
The advertising policies used are essential to success as this will maintain a constant flow of buyers visiting the franchise, who can after that refer other individuals. The advertising policies consist of advertising through newspaper and television, billboards, trade shows & through the internet.
Immigration Business Plan
There are lots of startups just have one staff, known as a franchise owner. Other types of franchises hire some salespersons, someone to properly manage the consumer financial process, as well as a receptionist. Along with this, the cars would also require proper cleaning as well as a few would require mechanical repairs or services. The franchise possessor may either recruit individuals to do the tasks. The needed people based upon the overall size of vehicle franchise trade, the entire number of cars, and also on the planned operating hours. Along with this, you may also consider the user who would perform these tasks and can also handle all types of lawful affairs. These are a few major aspects of a sample of business plan dealership .
Suitable Destination to Sell Used Automobiles
The used franchise business plan dealership might clearly show owners would directly sell vehicles online, something turned into a normal incident. This is suggested to check how people can arrange the observing or getting the delivery whether they are pleased with what people actually see online as well as forgo a proper inspection. These are the major aspects of trade proposal sample that helps anyone who would like to open the used vehicle franchise in an easier manner.
The online car trading is only wining while the internet record is precise and explains the vehicles accurately. The record maintenance needs to have direct access to experts with the experience to uphold, remove and add car records. This would be essential to make a platform for daily follow-up with internet based inquiries. The main drawback of online trading is receiving unwanted reviews or comments from certain clients on various online platforms who are unsatisfied with how a firm handled transactions or unsuccessful to react to queries.
Opening on a Small Scale & See the Growth
Beginning a vehicle franchise requires an effective approach and proposal. Individuals who are already in this business say that opening small allows you to grow as quickly as sales let to keep profitability. This is highly tempting with regards to open large inventory effectively sitting on the franchise is joined up investment. The business plan used car dealership will make sure that your things pass every stage of initial step as well as analyze each and every financial need. These are the most essential considerations that help interesting people to start the used car dealership firm without facing any difficulties. If you desire to gain the benefits, you can immediately develop an effective and superior proposal. Many people face certain difficulties while creating a sample or precise work proposal for their vehicle franchise policy. For this reason, so they are seeking for the professional assistance.
Get expert advice online
There are myriad of ways and techniques available to create an outstanding and effective vehicle franchise business plan, so you can carefully select the right one based on your organization opening requirements. Hiring the best plan consultants online is a smart way to get professional assistance and reliable services. The most reliable experts have lots of precise skills who are always ready to aids you with creating an effective document which is superior quality. Along with this, it also has the capability to attract lots of investors. If you desire to know more details regarding the management experts, you can visit the website from where you can get an excellent range of firm related services. These are the most essential services that assist you to create an outstanding proposal. The smart policy allows you to open the used vehicle franchise business and get success soon.
Obviously you must know that by purchasing used cars, you will save lot of dollars on a single go. So customers who are economical buy the reconditioned vehicles to reduce burden of expenses. Well, they need someone whose business strategy plan used vehicle business backup will enable them to buy automobiles spending small amount of money. Used vehicle is always profitable if it works better. Apply innovative used vehicle franchise business ideas to find the car dealers, for money, who are eager to assist you to purchase a used vehicle at smart price. Get best guidance for starting a used car business. Take training about how to start your own car dealership. Best reviews on how to start a dealership shop must help you to run used vehicle franchise business.
Tips for You to Open Reconditioned Auto Storefront
Similarly, if you are not a business customer, you have to think of earning money by selling used cars to customers. This car selling business idea is profitable to get money. Well, car dealership business is naturally beneficial to an entrepreneur to get money without heavy investment in this industry. Go through the success stories of big business magnets how to start up a used car dealership business from the scratch for money earning. Automotive used car dealership industry is running successfully with lot of futuristic used vehicle franchise business policies for newcomers to launch profitable used vehicle franchise business for having large amount of money.
To be frank, right now new brand franchise vehicles are very costly. In America, the prices of new aerodynamic cars are sky rocketing to threaten up the middleclass buyers. Rich persons are only capable of buying eco friendly new cars with good insurance packages. However, the used vehicle business field is vying successfully to entice frugal buyers to bring reconditioned four wheelers with cost effective insurance packages to home without overspending money. The automobiles which are used or repaired must be cost effective. The car maintenance idea is also less costly without investing lot of money. Besides, business customers don’t have try hard to issue new business licenses if they decide to buy used dealership cars with auto insurance packages for personal usage.
A used car business dealer has the profit making bank when he enters into this business plan dealership . He finds the good franchise vehicles sellers for customers who need to buy franchise used automobiles at low prices. These dealership used vehicles on insurance packages have been refurbished and reconstructed. In-car accessories have been modified or totally replaced. The dealership car chassis is new and the tyres are capable of bearing road friction. As a used car dealership entrepreneur, try to design a proposal how to start your own agency successfully. Basically business dealership used cars dealers are middlemen or brokers who are professional to deal with customers. Big car selling companies contact these business cars dealers to find good customers.
On the other hand, business franchise car buyers are eager to talk to professional car dealers to have genuine contacts with used vehicle sellers. So a car dealer gets commissions without investing money to expand or promote the dealership car selling business. Learn how to start a car dealership with no money. Start used car business after doing a compact table work. Naturally, solid car dealership policies/ idea must have result oriented ideas to start a business plan dealership , car selling ideas for money, innovation in the car dealership business more meticulously .The fact is that new franchise car sellers are not properly aware of the demand of business consumers who are very strict to buy used automobiles. They search for authentic information, prices, and complete business car dealership stat report on the list of used cars before making the written business commitment in this connection.
A reliable used vehicle business franchise agent with ideas has information how to buy the used vehicles easily. He has the dependable used car sellers who have industry specific and very qualitative used cars with complete papers to enable economical cars buyers to buy vehicles without wasting money. Used vehicles are available for anyone. However, the quality must differ. Besides, often it is not possible for a business car buyer to get the favorite model in his home state. In that case, car dealership business agents have dealership policies, ideas, tips and effective contact list to help customers to buy the used business cars.
Terms and conditions are easy for customers to follow in the event of completing the business transactions with car sellers. Well, therefore to become a good used vehicle franchise business agent to earn money successfully, you need to hand craft a complete business proposal how to start a used car business. Your business inventory should have a list of top business dealership brands for enticing customers. For instance, Chevrolet, fast track vehicles, aerodynamic cabriolets, 9 compartments limos, and convertible SUV models are really rivals in the automotive industry/ business.
The field is booming for used vehicle business dealers. They are very active and competent to roam for gathering information for business customers. Well, though franchise used cars are now favorable to people for usage, the durability of these business used vehicles must not be short lived. Besides, it is still expensive to bring back business plan dealership used cars from other states. Customers will have to bear business transportation cost as well. Therefore, local buyers like to locate the best used cars dealer agents or competent professional business brokers for satisfactory franchise business deals online. An experienced used cars dealer is not stuck to his own state. He has the vast field for business communication with car sellers living in different states. They collect brands to revise for resetting the car selling franchise business policy.
So, business ideas and business homework for business are needed for you to proceed stepwise. Needless to say, used automobiles stored in shops should be strong, durable, eco-friendly. The used car compartments should be spacious with innovative safety /childcare accessories. This vehicle redesigning process should be unique. However, your dealership used cars with insurance packages should not be much pricey comparing to the dealership brand vehicles kept in shop for sales. So, calculate the cost of business cars repairing, and maintenance to convince business buyers. Moreover, dealership used cars are also energy efficient. Therefore, economical dealership business cars buyers are interested to purchase only good quality used cars to manage their maintenance cost.
For this reason, you must be well trained with good business policies and ideas to start promoting our used car dealership business. The scope of investment in the automotive business market is expanding due to the flexibility to get easy used car dealership business loans to renovate companies. You are the efficient car dealer with knowledge/ idea to have lot of known brand business models which are now overused. However the condition of these used or reconditioned vehicles is appreciable. If legal business papers are properly reset and cross verified without any error, it is the best way to have only cheap or affordable used cars to undergo hassle free car trips. Search for best tips how to start a used car dealership.
Need Compact Used Auto motive Business Management Support –Tips?
See, ignorance should be wiped out to brighten up the future. Illiteracy is a bane and the effect must not be beneficial to anyone. Therefore, you must upgrade your thinking method using your wisdom. Similarly, if you are not efficient for starting car dealership business, you must need the information from experts. It must not be a stagnant water pond for you to swim. Expand your imagination and utilize the best methods to redesign what you plan. One of the factors lying hidden for starting mini cars dealership business is the hassle free business management. You don’t need handsome capital for opening starting cars dealership business. That’s why; you should do dealership business table work depending on specific objectives and extrapolated facts at hands. What is your objective or vision? Starting a car dealership business, you need a complete infrastructure for basic business transaction related paperwork.
Well, right now, it must be easy for you to contact various business car sellers whose offices are located in various states .Earlier; used car dealers for business had to travel in other metro cities and states to sit for discussion with their clients. The business promotion in the automotive field was not flexible. It was not cool to have good deals to take care of. Used cars dealers had had to check the conditions of the used cars by going to the factories. Then, he needed professional automotive engineers to see the used branded business cars meticulously. In addition, the complete legal paper work is required before taking the possession of used cars. However, at present, it has become more convenient for starting small size used car dealership business/shop in any particular location. A used cars dealership entrepreneur is not basically required to establish a costly set-up for running business.
Nor is it urgent for him tohire100employees for starting commercial business deals. The used cars business dealers should be much knowledgeable about the business trend and existing business ambience in the used cars dealership industry. Initially, what you are supposed to need is to open a small business plan dealership office for faster communication. Certainly, it will not be a big used car shop but it must be a small corporate office for dealing. Start-up cars dealership business agency must undergo modernization. Frankly speaking, people use only modern tools like mobile handsets, computers, internet and tablets to manage their regular tasks.
So, be steady with strong determination to tune up the industry in much better way. Cross check the recent dealership industry statistics to have basic knowledge and grow good familiarity with profitable used car dealership market for long lasting dealing. It is much more fantastic for a start-up used cars dealership entrepreneur to track the on-going car selling process in the automotive field to be confident to start a used car dealership.
Vast Study to Open Storefront to Sell Used Vehicles
Informative stat report and research based articles must be solid ingredients to have innovative used cars dealership business promotion ideas with new promotional ideas. Locate the particular states where the dealership industry trend is very high to buy used cars. Therefore, you must have promising management projects/ idea, innovative samples and free quotes to manufacture a workable competitive financial budget to control your overall expanses in starting the lucrative business plan dealership . Initially, your basic research must be a trial for an entrepreneur to demonstrate. Learning has no limit and regularly you must have new dealership ideas to chalk out more dynamic management theories/ idea to invest funds in the used cars selling market. Internet navigation is now so majestic that people feel distressed without using internet for various purposes.
Comparison is a must. When you have desires of starting a new cars dealership agency, you must not trail behind. Accumulate information from multiple dealership business sources. Online sites will give you a reliable comprehensive support to complete tasks including free trial demonstration. In America, 44 million used cars were quickly handed over to customers by 2005. However, only 17 million new vehicles were sold. Therefore, strategically, it is seen that Americans are happy to drive used cars to avoid expenses. This business graph is very effective for a new used cars dealership entrepreneur for starting investing. At present, the dealership business innovation takes place in major automotive sectors including the used cars dealership selling market as well. So, you must not waste your resources when you are very much enthusiastic to run a business to get good financial support.
Used cars dealership industry is offering a new platform for those who need cost effective driving service plus online info. So, convince them how to get lot of benefits by purchasing dealership used cars from the flea business market. A used car is not a new brand. Someone has used this used vehicle. However, it is not totally damaged or incapable of running at high speed. Condition of the used car is not bad as well. So, this used car is on sale. The cars dealership agents contact the sellers and update the site. At this juncture, you must need better advertising ideas to promote cars dealership business. To be frank, internet based business marketing portal is now another attractive niche to enable million people to get information without delay. Within fraction of second, Google offers completed e-books, files and research based data free. Simply, open a new optimized business website for dealership advertising.
Your old used cars must be visible online to entice customers. You are a car dealer and you must have good business communication system to deal with customers for doing business transactions successfully. Needless to say, you must be aware of the requirements of modern business buyers who are not willing to buy classic fast track cars which have very old fashioned models. Then your website must have fleets of nice vehicles of selected brands. Used cars in different states are sold. However, people should have a particular place where possibility of getting only standard used cars is very high. Certainly, the availability of affordable used cars with excellent insurance packages must boost up economical people to hit the internet with expectation of finding glossy vehicles in smart prices.
Deep Market Analysis Required to Invest in Auto Business
The marketing business plan dealership field is not stuck off. New advanced technology is fast changing the process of product advertising and business branding. Conventional business theories are modified by dishing out more workable and competitive dealership policies to help budding entrepreneurs to survive even in tumultuous recession. Design new business ideas and you must search for innovation in the project implementation. Marketing idea must be compact and effective. Today, internet is in home, café, and even in bathroom.
People get access to Google while travelling by cars. They have smart phones to open the sites to see what is brewing up in the furnace online. Introduce a cross device compatible upgraded e-commerce business portal which must have few innovative dealership tools including
- fast page viewing feature,
- link building tools,
- quick registration system,
- data management portal,
- online dashboard,
- advanced plug-in ,
- new adds-on,
- business bookmarking system,
- faster business data transfer tools as well.
While you do business marketing, readers must not be in state of discomfiture and stress because of disorders in page viewing. Online gallery for practical idea must be open with lot of sample models to show. Seasons change to energize people to go for different outdoor expeditions and recreational campaigns held in beautiful states.
Our work with OGS Capital company and its partner Alex Silensky
Having the business plan is a foundation for every company and it is very important for us too. We are owners of Natural Dental Therapeutics LLC. Our experience with OGS Capital and especially, with Alex Silensky on developing a business plan for our company was very productive. There are distinctive aspects of the OGS Capital company and it’s partner Alex Silensky work : professionalism, responsibility, and almost immediate communication on all our requests and comments from the beginning till the end of our teamwork. Every part of our business plan is designed in a constructive and professional way. A special thanks to Alex Silensky for providing market analysis which contains a lot of new information for us. OGS Capital company and especially Alex Silensky deserve full trust of their clients and we will recommend to anyone needing similar service. We wish OGS capital and Alex Silensky a very success in the future in business plan consulting. With sincere thanks, Pavel Krykhtin DDS Sara Grinblat pharmacist
Used car selling business trend is also increasing because of the demand from customers. In bright sunlight with coziness and warmth, people are crazy to overstep their houses for exploration. They require mini vans, SUV, and station wagons to relocate their goods. At night they take shelters in camps to spend night. For this adventurous expedition, people have to choose vehicles which are not defective. Well, any private business transportation service provider offers used cars on rent. It is a rental car service. If you need to buy used cars, kindly go to a professional car dealership business agent to fulfill what you dream in your bed room. So, you must have different types of business plan dealership used cars for sale. People will be able to get information from your site. Locate states where people are very much enthusiastic to buy used cars.
These specific states must be properly selected online for good dealership business advertising. Usually rich people have no interest to buy used cars as they are classic in taste. They are also not comfortable to drive the cars which have been used by others. It is a matter of prestige. However, middle class people prefer dealership used cars which must not be pricey. Try to capture them for delivering fleets of good looking used cars with affordable auto insurances. Advertising business plan dealership analysis must not be bogus or useless. After an initial advertising business analysis, experts have selected four groups such as student, retired persons, family members and singles. Students who are college goers need glossy vehicles which have beautiful in-car accessories and excellent colors.
They also need used cars but these vehicles must be classic showpieces. The retired community is not very much over particular about the price and decoration. They are very practical. These aged groups need totally integrated vehicles with good finishing avoiding accidents. Car trips must be comfortable. Family members are desirous of buying large and boxy used cars to accommodate number of persons on a single go. They will undergo outdoor overnight expedition. Well, finally, singles are romantic. They need small size used cars which have nice interior décor. These cars will be equipped with good street nav systems .They must enjoy the car driving with their sexy sweet hearts. Now, you must probe how to categorize used cars which must be suitable to particular groups in separate. It will be easy for you to promote your car dealership business beautifully .Ask for good advice from experts.
Car dealership business projects should include a cost effective financial report or business budget. This business proposal is precious to an entrepreneur for starting car dealership shop or outlet to attract customers. If you are a new born baby in the automotive business industry, certainly, you should hire a professional starting dealership business proposer to write the entire management project with dynamic strategies. A freelancer will be hired to complete the car dealership business plan. It will be a joint or collaborative effort. The freelancer also needs your views to upgrade the starting auto dealership business plan. In this proposal, your requirements must be analyzed to make the business run successfully. People should be educated. Prior to buy used cars, they will cross check and evaluate different aspects to avoid confusion.
Help them to do the successful business deals. So, make your business proposal much innovative to start meticulous business analysis as well as evaluation for having guide. Generally, low cost or cheap used cars are given priority by economical groups. Those who have average financial support are no longer interested to go to the local car shop to buy expensive new dealership branded cars loaded in shops. On an average basis, your car dealership business plan must enlist the cost efficient used vehicles. Business proposers to assist clients must choose every segment for better marketing dealership business analysis to rebuild the business. In this connection, colorful dealership graphs and business dealership diagrams to locate the different segments must be helpful to car dealership entrepreneurs. Business environment needs to be monitored for starting tiny local car dealership business shop.
Well, there is a particular class which seeks to buy only affordable used cars. They are local buyers with least interest to prioritize the quality of vehicles. They use used vehicles for shopping or funny trip in the locality. Another group needs smart used cars which must be qualitative. Entrepreneurs, college goers, officers and executive rankers need quality at competitive prices. In this business project, highlight these business categories to upgrade the buying section in the commercial website. A freelance business proposer has many ideas and views. Even he has written many dealership business projects. Read his sample articles for getting strategies and business projects to know better about the marketing, dealership management, product promotion and other things to mobilize the cars dealership business.
Customers have negative feeling about the used cars in shops. They think that these used vehicles are of no usage. These are toys for children. It is also dangerous to purchase used models as maybe it may have defects .However, if the cars are technically configured replacing all junk tools and accessories, it must not be a bad thing for a customer. Start your selling speech in this way. A dealership business proposer who gives strategies/ projects will assist you how to forward your message to consumers. Car buying dealership business is not easy. Hurdles and hidden loopholes must be tracked to ensure the smooth deals in the long run. Many fake dealership entrepreneurs dupe customers by selling defective used cars. It is an act of criminality. You must not be such a person with ill purposes.
Therefore, the starting dealership business projects to run the auto dealership shop must be balanced with a clear preview of the vision of yours. You should not have fear or stress to suffer from. Need a good guide from reliable starting dealership business projects designers and of course consultants. The starting business in the dealership industry/ business must not sink in vast ocean due to the recession. Funds are required to establish a small dealership office which should be the place for business customers to meet business clients. Certainly, decorate the office with new furniture pieces.
Computers are tools to do regular tasks and documentation. Serious starting dealership business proposers have better ground work and sample write-ups to follow. Custom free dealership software for business scheduling is right now becoming extremely famous in Europe. Car dealership entrepreneurs download the free business tools on computers to activate the business portals for business preparation guide. Over 50 thousand free sample starting business plan dealership strategies on vehicle franchises are available in this type of advanced starting business software to manage business. Secondly, awesome dealership management software is open source tool to generate solid research components for extensive strategic analysis. It must not be a mistake to use this upgraded vehicles dealership business operating tool to manage used vehicle business.
Online free sample starting business projects and graphic pictures offer guidance to entrepreneurs who need a good start to open a starting auto dealership shop. This online dealership business shop must have cost effective used vehicles with sound dealership business insurance packages to enable customers to feel happy when they visit the online starting auto dealership shop to do the transactions. So, the online dealership business proposers to guide people have to include more materials in the content to help entrepreneurs to set up the shopping hassle free mind. Well, many companies are eager to contact buyers for having good auto insurance dealership strategies. Car dealership shops online must have such eye-catching packages for the protection of vehicles to a great extent.
Auto insurance companies are also interested to sell cost effective auto insurance policies on used cars. It will be a secondary extended starting dealership insurance policy to cover various parts of the cars . Get quick financial support in the case of street accident, fire, damage to the cars, and technical hazard. Your innovative cars dealership shops must have uploaded information about the top auto insurance agencies which give low premium rates on the dealership products.
Give the list of auto insurance companies plus brief-ups about the current prices of buying auto insurance coverage to ensure the car protection. Even legal backup is found to trouble shoot problems. The online free starting business plan dealership management and preparation software is the workout for you to write the business ideas perfectly. Professional competent proposers with innovative strategies for informative guide have such free tools for delivering new marketing ideas to teach clients how to open a used car dealership.
Do Proper Industry Branding
Without brand name or logo, entire objective seems to sound useless or defunct. Industry can’t run without logo. Your starting auto dealership shop must have a specific ID or brand for recognition. It will be a vehicle for correspondence. It will promote your starting used auto dealership industry. It will be a familiar tool for consumers to depend on the shop for starting deals vigorously. Brands must be authentic, meaningful and of course innovative. How to attract customers? Design a name for dealership starting. The starting auto dealership shop should not be given any odd name to harass common car buyers. To be frank, starting dealership used vehicles are environment friendly. Drive train, street navigation tools, in-car accessories, car seats, and leatherwork must be modified or new.
Used cars should be assembled. Top starting car dealership shop should have a number of good options for car selling. Starting automotive franchise shop has a separate customer care team to help people to have the quick support. Sales of used four wheelers must gear up if the starting dealership industry dealing process is less complicated. Online starting car dealership shops must have advanced automotive shopping carts for people to complete the car deals transactions. It states that customers need solid legal papers like licenses to have permission to use these used vehicles. Legal experts with caboodle of strategies must review these papers to issue licenses to car drivers.
Well, naturally, your new starting cars dealership business shop should have a team of consultants to solve various issues regarding used car dealing. In different American states, the law is not same. Therefore, entrepreneurs must need legal expert to prepare business plan dealership . Licenses are issued to car drivers if they are matured without any bad DUI report against them. States in America are very strict to permit young car drivers to drive in the street. On the web pages, mention major states in which good used cars are kept for selling purposes. At the same time, give brief descriptions about the traffic laws in these states. In Arizona, Delta, New York and Atlanta, people use reconditioned vehicles.
Provide information about the climate in these sophisticated states and help newcomers how to buy fuel efficient used cars. Vigorously start used car dealership. Online car / automotive franchise entrepreneurs have the connection with the used car sellers in various states for guide. These car sellers have their own terms and conditions to abide by. As being a good car dealer, you should understand what they need to sell used cars to customers. In addition, used car sales in these recognized states are skyrocketing. You must jot down names of these popular states for starting used automotive franchise industry. Well, used cars are of different types. Free models should be placed in the online gallery for customers to choose the best used vehicle.
In rich states, classic used cars are much expensive than other cheap models. High profile class wants smart and eco-friendly used cars. However, other cost efficient small used cars are showpieces for average income groups. The brand used auto dealership shop on internet facilitates starting car buyers to choose their favorite states forcer buying. Remove legal bindings to accelerate the sales of brand used cars in these states. The simple car buying strategies/ business plan dealership must be conducive to the quick sales of used vehicles. Definitely, your opening a car dealership shop must have some amazing attractive starting dealership business promotional offers. Online sites with strategies/ guide/ used car dealer business plan seem to be peerless to lure customers for accelerating used car sales.
For instance, discounts or promo codes offer is entirely a part of starting automotive franchise branding. These discounts are extremely useful to common car buyers who need very easy deals to buy used cars. Business brand will grow fast in case customers are seen hitting your portal for purchasing used cars. Schedule how to promote your car dealership business by distributing such awe-inspiring car dealership discounts. The small business shop online recovers trust of people by bringing custom discounts and free quotes to people. Small companies for used cars dealership business must have freebies, promo codes and discount vouchers to cut expenses of used cars.
Business clients and customers have free quotes to buy the best used cars from the shops online. Upgrade your starting mobile cars dealership industry shops as well so that people feel good to finish transactions. Mini starting car dealership shops with marvelous selling strategies have new tools for going through details to buy automobiles. Compare prices and see whether other online starting brand business shops are overtaking your starting business by giving more dazzling discount offers .You must have good resources to start a car dealership trading. Have free used vehicle franchise industry tips from consultants.
Online automotive franchise shop must not be expensive to people. For increasing car sales to have more profits, you must extend the boundary to capture more car buying customers. Talk to reliable used car sellers how to reduce the hurdles of customers to bring the speed to used car sales in home town. Your innovative starting car dealership shop must not be sick after few days of inauguration. Funds must be invested to innovate the mobile open source car/ brand automotive franchise shop. So, you need qualitative starting used car dealership business projects, more new strategies and ideas to renew sales of used cars within short span of time. Online e-books for new idea, reference books and free sample models for legal automotive franchise industry running must be collected for deep studies/guide how to start a car dealership successfully.
Download car dealership business plan sample in pdf
OGS capital writers specialize in business plan themes such as used auto parts business plan , business plan for fashion boutique , donut shop business plan , jewelry business plan , lingerie store business plan , auto dealership business plan and many others.
OGSCapital’s team has assisted thousands of entrepreneurs with top-rate business plan development, consultancy and analysis. They’ve helped thousands of SME owners secure more than $1.5 billion in funding, and they can do the same for you.
E-mail is already registered on the site. Please use the Login form or enter another .
You entered an incorrect username or password
mentioned in the press:
Search the site:
OGScapital website is not supported for your current browser. Please use:
Car Dealership Business Plan Template
This car dealership business plan template has 26 pages and is a MS Word file type listed under our business plan kit documents.
Sample of our car dealership business plan template:
[INSERT IMAGE/LOGO] [YOUR COMPANY NAME] [YOUR ADDRESS] [YOUR CITY], [YOUR STATE/PROVINCE] [YOUR ZIP/POSTAL CODE] Tel. [YOUR PHONE NUMBER] Fax: [YOUR FAX NUMBER] Email: [YOUR [email protected]] BUSINESS PLAN
2,600+ templates & tools to help you start, run & grow your business, all the templates you need to plan, start, organize, manage, finance & grow your business, in one place., templates and tools to manage every aspect of your business., 8 business management modules, in 1 place., document types included.
Used Car Dealership Business Plan Template [Updated 2023]
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.
[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.
[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.).
[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.
[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.
[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].
The market in which [Company Name] will compete is experiencing a number of different 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.
- 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.
- 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:
- 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.
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:
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.
[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.
[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
[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:
[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.
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.
[Company name] will promote itself by distributing marketing materials and participating in local community events, such as school fairs, local festivals, or homeowner associations.
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.
[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.
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.
[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.
[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.
- Financing and insurance processing
- Auto maintenance and service
- 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
- 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.
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%.
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.
- 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
We need $130,000 funding to start. That includes a $100,000 loan. Jonathan will invest $20,000 and Don will invest $10,000.
Start your own business plan
Your business plan can look as polished and professional as this sample plan. It's fast and easy, with LivePlan.
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.
Flash Sale. 40% Off the #1 rated business plan builder