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Used Auto Sales Business Plan

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Integrity Auto Sales

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

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

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

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

Competition

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

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

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

Expectations

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

Financial Highlights by Year

Financing needed.

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

Opportunity

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

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

4.1 Market Segmentation

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

Current Alternatives

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

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

Our Advantages

Keys to success.

To succeed in this business we must:

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

Marketing & Sales

Marketing plan.

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

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

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

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

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

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

Locations & Facilities

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

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

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

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

Milestones & Metrics

Milestones table, key metrics.

Our key metrics are: 

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

Ownership & Structure

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

Management Team

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

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

Personnel Table

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

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

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

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

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

Revenue by Month

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

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

Other miscellaneous expenses include:

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

Sources of Funds

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

Projected Profit & Loss

Projected balance sheet, projected cash flow statement.

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Car Dealership Business Plan: Complete Guide

• January 11, 2023

Whether you’re looking to raise funding from private investors or to get a loan from a bank (like a SBA loan) for your car dealership, you will need to prepare a solid business plan.

In this article we go through, step-by-step, all the different sections you need in your car dealership business plan. Use this template to create a complete, clear and solid business plan that get you funded.

1. Executive Summary

The executive summary of a business plan gives a sneak peek of the information about your business plan to lenders and/or investors.

If the information you provide here is not concise, informative, and scannable, potential lenders and investors may lose interest.

Though the executive summary is the first and the most important section, it should normally be the last section you write because it will have the summary of different sections included in the entire business plan below.

Why do you need a business plan for your car dealership?

The purpose of a business plan is to secure funding through one of the following channels:

• Obtain bank financing or secure a loan from other lenders (such as a SBA loan )
• Obtain private investments from investment funds, angel investors, etc.
• Obtain a public or a private grant

How to write an executive summary for your car dealership?

Provide a precise and high-level summary of every section that you have included in the business plan. The information and the data you include in this segment should grab the attention of potential investors and lenders immediately. Also make sure that the executive summary doesn’t exceed 2 pages.

The executive summary usually consists of the 5 main paragraphs:

• Business overview : introduce your car dealership: what is your business model (franchise vs. independent business ; new vs. used car dealership), how many cars will you have in inventory? Are you partnering with any car manufacturer(s)? Where would your store be located? Etc.
• Market overview : briefly analyze the car dealership industry in your area ( market size and growth), your competitors and target customers: average income of your target audience , demographic distribution, customer preferences etc.
• Management & people : introduce the management team and their industry experience. Mention your business partner(s), if any. Also give here an overview of the different teams, roles and their reporting lines
• Financial plan : how much profit and revenue do you expect in the next 5 years? When will you reach the break-even point and start making profits? Also include here a small chart with your key financials (revenue, net profit )
• Funding ask : what loan/investment/grant are you seeking? How much do you need? How long will this last? How will you spend the money?

Car Dealership Financial Model

Download an expert-built 5-year Excel financial model for your business plan

2. Business Overview

In the business overview section of your car dealership business plan, you should expand on what your company sells, to whom, and how it is structured. A few examples of questions you must answer here are:

• The history behind the project: why did you choose to open a car dealership today?
• Your business model : Are you franchising or is this an independent store? Are you selling new or used vehicles?
• Products & services : What vehicles / brands do you plan to sell? Are you planning to add any additional services (e.g. car repair & checkups, etc.)
• What is the legal structure of your company? Who are the directors / shareholders?

a) History of the Project

Briefly explain how did you come up with the plan to start a car dealership business. What motivated you to get into this business venture? 

Also try to demonstrate to investors your interest and passion for the car industry and car dealership in general.

For example, you might have worked in a car dealership and/or at a car manufacturer sales department in the past, and found immense growth potential for this type of business in your area.

b) Business Model

Explain in this section what business model you chose for your car dealership. Here are a few questions you must answer:

• Will you start an independent dealership, franchise model, chain store, etc.?
• Will you open a brand-specific dealership?
• Would your car dealership deal in new cars, used cars, or both?
• Do you plan to open an online dealership?
• Would you offer service and repairs in your car dealership?

c) Products & Services

Now that we have briefly introduced what your business model is, you must explain in detail what exactly you intend to sell. There are 2 things here:

• Products (cars): what vehicles and brands do you intend to sell? Why did you choose these vehicles / brands?
• Services : if you offer additional services (e.g. car repairs, checkups), explain what they are

In addition to the products and services , you should also include a list of prices for each. Of course, this doesn’t need to be exact. Car prices fluctuate based on various factors. Yet, you must be able to provide a range of prices for each category (e.g. sedan, luxury cars, vans, etc.).

If you specialize in a specific brand, you can provide a list of prices per model in appendix as well.

The prices are important as they will allow investors to tie your product offering with your financial projections later on.

d) Legal Structure

Explain the legal structure of your nursing home in this section. Are you starting a corporation, a limited liability company, or a partnership? Who are the investors? How much equity do they actually own? Is there a board of directors? Do they have prior industry experience?

3. Car Dealership Market Overview

A complete understanding of the car dealership industry is important for the success of your business.

Therefore, you must cover here 3 important areas:

• Status quo : how big is the car dealership industry in your area? How fast is the market growing? What are the trends fuelling this growth (or decline)?
• Competition overview : how many car dealership competitors are there? How do they compare vs. your business? How can you differentiate yourself from them?
• Customer analysis : what are your target customers? What are their customer preferences?

a) Status quo

When looking at the car dealership industry, try to start at the national level (US) and narrow it down to your service area (a city for example). You should answer 2 important questions here:

How big is the car dealership industry in your area?

How fast is the car dealership industry growing in your area, how big is the car dealership industry in the us.

The auto parts and car dealership industry in the US is huge: it was worth $1.18 trillion in 2021 as per the National Automobile Dealers Association . As per the same report, there were 16,676 light vehicles car dealerships in the US in 2021 which generate an average revenue of $71 million.

Sales are divided between new (52%) and used vehicles (37%) as well as services and parts (11%).

After the US, assess the size of the car wash industry in your city or area. Focus on the zone where you plan to offer your services.

Naturally, you might not be able to get the data for your specific city or region. Instead, you can estimate the size of your market, for more information on how to do it, read our article on how to estimate TAM, SAM and SOM for your startup .

Luckily, NADA publishes statistics per state so you can narrow it down easily. For your city instead, you will need to do work out some estimates. To give you an example, let’s assume you plan to operate in an area where there are already 30 car dealership businesses (in a 25 miles radius for example).

Assuming our business is based in Connecticut, we can use the state’s average annual turnover of $49,661 : we can reasonably assume that the car dealership industry is worth $1.5 million in your area . In other words, there are over 35,100 light vehicles (new and used) being sold in your area each year (assuming the average retail price of $43,000).

Now that we know your area’s market size, let’s look at growth instead.

Fortunately, you can use NADA’s number again as they publish annual reports. Just use your state’s market size growth, and explain the growth (or decline). This can be due to average car prices, or volume.

b) Competition overview

You should discuss both your direct and indirect competition in your business plan. Other car dealerships in the region will be your immediate competitors. Internet auctions, individual dealers, etc., will be your indirect competitors. 

In this section, you should also discuss the essential components of the business models of your main competitors. Your research should be focused on their clientele, the kinds of cars they offer, and their strengths and weaknesses .

A thorough competitive analysis is crucial as it may allow you to discover and address a customer need or preference that none of your rivals is addressing today.

Here are some of the questions that you must answer in this section:

• How many competitors are there in the area where you want to open your car dealership?
• Are they franchises or independent stores?
• Do they partner with specific car manufacturers?
• What type of cars do they offer (luxury, economy, used, new, etc.)?
• What is the average price range of the cars they sell?
• How many employees do they have?
• Do they offer services and repairs?
• Do your competitors offer buyback on the cars sold by them previously to the client?
• What type of offers and discounts do they offer to attract customers?
• How many cars / vehicles do they sell on average per month?

c) Customer analysis

Now that we have a good idea of the car dealership industry in your area as well as competition, now is time to focus on your target audience: customers.

Knowing your customer is extremely important before you get into any business. This is all the more relevant for car dealership where customer preferences and tastes are very different.

For example, if you are planning to get into a luxury car dealership business, you should look into:

• The estimated population of high-income people in your area
• Types of luxury cars that are in demand (hatchback, sedan, SUV, etc.)
• Shopping preference of your target customers (online or offline)
• How frequently do they buy (or exchange) new cars?
• Is their buying decision influenced by offers or discounts?
• What features do your target customers want in their new luxury cars?
• What type of additional services do they expect from their dealers?

4. Sales & Marketing Strategy

This is the section of your business plan where you outline your customer acquisition strategy. Try to answer the following questions:

• What are the different marketing strategies you will use?
• What are your Unique Selling Points (USPs)? In other words, how do you differentiate from your competitors?
• How do you intend to track the success of your marketing strategy ?
• What is your CAC or customer acquisition cost?
• What is your marketing budget?

What marketing channels do car dealerships use?

A few marketing channels that car dealership businesses typically use are:

• Signage, billboards
• PPC ads, Facebook ads, etc.
• Print media
• Loyalty programs
• Online local listing (Google Business)
• Content marketing (share content like vehicle maintenance tips, safe driving tips, etc.) on platforms like blogs, social media, etc.
• Word of mouth, recommendations

You must have a fair and nearly accurate estimate of your marketing budget. Therefore, make sure to budget for marketing accordingly in your financial projections.

What are your Unique Selling Propositions (USPs)?

In other words, how do you differentiate yourself vs. competitors? This is very important as you might need to win customers from competitors.

A few examples of USPs are:

• Products: you may be the exclusive distributor or a car make in your area for example
• Services : you may offer repairs and regular checkups for your customers
• Location : you store is closer to a busy road and/or to where your customers live

Your USPs will depend on your business model, competitor analysis, and target audience. Whatever your USPs are, it should appeal to your potential customers and attract them.

5. Management & People

You must address 2 things here:

• The management team and their experience/track record
• The organizational structure: the different team members and who reports to whom

Small businesses often fail because of managerial weaknesses. Thus, having a strong management team is vital. Highlight the experience and education of senior managers that you intend to hire to oversee your car dealership.

Describe their duties, responsibilities, and roles. Also, highlight their previous experience and explain how they succeeded in their previous roles.

Organization Structure

Even if you haven’t already hired a VP of sales, sales managers, support staff and any other relevant staff members, you must provide a chart of the organizational structure outlining the different teams, roles and their reporting lines.

6. Financial Plan

The financial plan is perhaps, with the executive summary, the most important section of any business plan.

Indeed, a solid financial plan tells lenders that your business is viable and can repay the loan you need from them. If you’re looking to raise equity from private investors, a solid financial plan will prove them your car dealership is an attractive investment.

There should be 3 sections to your financial plan section:

• Your historical financials (only if you already operate the business and have financial accounts to show)
• The startup costs of your project (if you plan to start a new car dealership, or purchase new inventory, expand your store, etc.)
• The 5-year financial projections

a) Historical Financials (if any)

In the scenario where you already have some historical financials (a few quarters or a few years), include them. A summary of your financial statements in the form of charts e.g. revenue, gross profit and net profit is enough, save the rest for the appendix.

If you don’t have any, don’t worry, most new businesses don’t have any historical financials and that’s ok. If so, jump to Startup Costs instead.

b) Startup Costs

Before we expand on 5-year financial projections in the following section, it’s always best practice to start with listing the startup costs of your project. For a car dealership, startup costs are all the expenses you incur before you open your shop and starting making sales. These expenses typically are:

• The lease deposit for the commercial space you rent (if you don’t buy it)
• The design and renovation of the existing facilities
• The inventory costs (the initial stock of vehicles you must buy to sell them at opening)

For example, let’s assume you want to buy 30 light vehicles as a start for inventory, and you take on a loan where you need to put down 15% upfront. Now, assuming these vehicles each cost $50,000 on average, this means you must put down $300,000 yourself. This comes in addition with any other startup cost mentioned above (lease deposit, renovation costs, etc.).

c) 5-Year Financial Projections

In addition to startup costs, you will now need to build a solid 5-year financial model as part of your business plan for your car dealership .

Your financial projections should be built using a spreadsheet (e.g. Excel or Google Sheets) and presented in the form of tables and charts in your business plan.

As usual, keep it concise here and save details (for example detailed financial statements, financial metrics, key assumptions used for the projections) for the appendix instead.

Your financial projections should answer at least the following questions:

• How much revenue do you expect to generate over the next 5 years?
• When do you expect to break even?
• How much cash will you burn until you get there?
• What’s the impact of a change in pricing (say 20%) on your margins?
• What is your average customer acquisition cost?

You should include here your 3 financial statements (income statement, balance sheet and cash flow statement). This means you must forecast:

• The number of vehicles you sell over time ;
• Your expected revenue ;
• Operating costs to run the business ;
• Any other cash flow items (e.g. capex, debt repayment, etc.).

When projecting your revenue, make sure to sensitize pricing and the number of customers as a small change in these assumptions will have a big impact on your revenues.

7. Funding Ask

This is the last section of the business plan of your car dealership. Now that we have explained what type of vehicles your company sells to whom and at what price, but also what’s your marketing strategy, where you go and how you get there, this section must answer the following questions:

• How much funding do you need?
• What financial instrument(s) do you need: is this equity or debt, or even a free-money public grant?
• How long will this funding last?
• Where else does the money come from? If you apply for a SBA loan for example, where does the other part of the investment come from (your own capital, private investors?)

If you raise debt:

• What percentage of the total funding the loan represents?
• What is the corresponding Debt Service Coverage Ratio ?

If you raise equity

• What percentage ownership are you selling as part of this funding round?
• What is the corresponding valuation of your business?

Use of Funds

Any business plan should include a clear use of funds section. This is where you explain how the money will be spent.

Will you spend most of the loan / investment to acquire the cost for the inventory (the vehicles)? Or will it cover mostly the cost of buying the land and building the store?

Those are very important questions you should be able to answer in the blink of an eye. Don’t worry, this should come straight from your financial projections. If you’ve built solid projections like in our car dealership financial model template , you won’t have any issues answering these questions.

For the use of funds, we recommend using a pie chart like the one we have in our financial model template where we outline the main expenses categories as shown below.

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Business Plan Template for Used Car Dealership

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Starting a used car dealership can be an exciting venture, but it's important to have a solid plan in place to ensure success. That's where ClickUp's Business Plan Template for Used Car Dealership comes in handy!

This comprehensive template is specifically designed for entrepreneurs looking to establish a used car dealership. It covers all the essential aspects of your business plan, including financial goals, market analysis, sales strategies, operational procedures, and growth projections. With this template, you can easily outline your vision, attract potential investors, secure funding, and make informed business decisions.

Don't miss out on this invaluable tool for setting up your used car dealership. Get started with ClickUp's Business Plan Template today and drive your business forward!

Business Plan Template for Used Car Dealership Benefits

A Business Plan Template for a Used Car Dealership can provide numerous benefits to entrepreneurs looking to establish their business, including:

• Streamlining the process of creating a comprehensive business plan by providing a pre-designed template
• Outlining financial goals, market analysis, and growth projections to attract potential investors and secure funding
• Guiding business decisions by providing a roadmap for operational procedures and sales strategies
• Ensuring a thorough understanding of the market and competition through market analysis
• Evaluating the financial viability of the business and identifying potential risks and challenges
• Increasing the chances of success by following a proven framework for business planning.

Main Elements of Used Car Dealership Business Plan Template

When starting a used car dealership, having a comprehensive business plan is crucial. ClickUp’s Business Plan Template for Used Car Dealership includes:

• Custom Statuses: Track the progress of your business plan with statuses like Complete, In Progress, Needs Revision, and To Do, ensuring that every step is accounted for.
• Custom Fields: Use custom fields like Reference, Approved, and Section to add specific details, track approvals, and organize your business plan sections efficiently.
• Custom Views: Access different views such as Topics, Status, Timeline, Business Plan, and Getting Started Guide to gain different perspectives and effectively manage and present your business plan.
• Collaboration and Task Management: Collaborate with team members, assign tasks, set due dates, and track progress to ensure that your business plan is executed effectively.
• Document Management: Store and access important documents, financial data, market analysis, and growth projections within ClickUp's Docs feature, keeping everything organized in one place.

How To Use Business Plan Template for Used Car Dealership

If you're starting a used car dealership and need help creating a business plan, follow these steps to make the process easier using the Business Plan Template in ClickUp:

1. Executive Summary

Start by writing an executive summary that provides an overview of your used car dealership. Include information about your target market, competitive advantage, and financial projections. This section should be concise but compelling to grab the attention of potential investors or lenders.

Use Docs in ClickUp to draft your executive summary and make it visually appealing with custom formatting options.

2. Market Analysis

Conduct a thorough market analysis to understand the demand for used cars in your area. Research your target market, including demographics, purchasing preferences, and competitors. Identify opportunities and challenges that may impact your dealership's success.

Use the Table view in ClickUp to organize your market research data and create custom fields to track important metrics such as customer demographics and competitor analysis.

3. Business Structure and Operations

Outline the legal structure of your used car dealership, whether it's a sole proprietorship, partnership, or corporation. Describe your dealership's location, facilities, inventory management, and sales process. This section should provide a clear understanding of how your dealership operates.

Create tasks in ClickUp to outline your business structure and operations, assigning each task to the appropriate team member responsible for implementation.

4. Marketing and Sales Strategy

Develop a comprehensive marketing and sales strategy to attract customers to your dealership. Identify the most effective channels to reach your target market, such as online advertising, social media, or traditional marketing methods. Determine your pricing strategy, promotions, and customer retention tactics.

Use the Board view in ClickUp to visually map out your marketing and sales strategy, with each column representing a different marketing channel or tactic.

5. Financial Projections

Estimate your dealership's financial projections for the next three to five years. Include projected revenue, expenses, and cash flow. Consider factors such as vehicle acquisition costs, operating expenses, financing options, and potential profit margins.

Use Dashboards in ClickUp to create financial charts and graphs to visualize your projections. Track key financial metrics such as gross profit, net income, and return on investment.

6. Implementation Plan

Create a detailed implementation plan that outlines the steps you'll take to launch and grow your used car dealership. Include timelines, milestones, and responsibilities for each task. Break down your plan into manageable phases to ensure a smooth and successful execution.

Use the Gantt chart in ClickUp to create a visual timeline of your implementation plan. Assign tasks and set dependencies to track progress and ensure tasks are completed in the right order.

By following these steps and using the Business Plan Template in ClickUp, you'll have a comprehensive and well-structured plan to guide your used car dealership towards success.

Get Started with ClickUp’s Business Plan Template for Used Car Dealership

Entrepreneurs looking to establish a used car dealership can utilize the ClickUp Business Plan Template to streamline the process of creating a comprehensive business plan.

First, hit “Add Template” to sign up for ClickUp and add the template to your Workspace. Make sure you designate which Space or location in your Workspace you’d like this template applied.

Next, invite relevant members or guests to your Workspace to start collaborating.

Now you can take advantage of the full potential of this template to create a solid business plan:

• Use the Topics View to organize different sections of your business plan, such as financial goals, market analysis, sales strategies, and operational procedures
• The Status View will help you track the progress of each section, with statuses like Complete, In Progress, Needs Revision, and To Do
• The Timeline View allows you to set deadlines and visualize the timeline for each section of your business plan
• Utilize the Business Plan View to have a comprehensive overview of your entire plan, including all sections and their statuses
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• Utilize custom fields like Reference, Approved, and Section to add additional information and categorize different aspects of your business plan
• Update statuses, custom fields, and progress as you work through each section to keep stakeholders informed and ensure a well-structured and effective business plan.
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Used Car Dealer Business Plan Template

🚗 used car dealer business plan template: accelerating your path to automotive success 🚘.

Drive Your Used Car Business Forward with Our Expertly Designed Business Plan Template Tailored for Pre-Owned Vehicle Entrepreneurs!

📄 Used Car Dealer Business Plan Template Introduction

Introducing our Used Car Dealer Business Plan Template, a strategic guide crafted for entrepreneurs ready to venture into or expand within the used car market. This comprehensive template outlines a roadmap for establishing a successful used car dealership, combining insights into the automotive industry with detailed business planning.

🌟 Main Features

• Word Document Template A customizable and editable template, specifically developed to address the unique challenges and opportunities of running a used car dealership.
• Executive Summary A concise, compelling summary that encapsulates the essence of your used car business, crucial for attracting investors, partners, and customers.
• Company Description A section to detail your dealership’s mission, the range of vehicles offered, and what sets your business apart in the competitive used car market.
• Market Analysis Basic analysis of the used car industry, offering insights into market trends, consumer behavior, and the competitive landscape to position your dealership for success.
• Organizational Structure A clear depiction of your business structure, detailing roles and the operational workflow for efficient sales and customer service.
• Marketing Strategies Customized marketing plans designed to effectively promote your used car dealership, focusing on digital marketing, local community engagement, and reputation management.
• Funding Request Guidance on formulating a persuasive funding proposal to secure the necessary capital for inventory acquisition, facility improvements, and operational expenses.
• 12-month profit and loss forecast.
• 5-year pro forma income statement.
• A user-friendly, adaptable Excel File.
• Flexibility to adjust revenue streams, operational costs, and staffing.
• Detailed financial analysis to support strategic decision-making and investor presentations.

🛠 Tailored for Automotive Retail Excellence

Our template is designed for adaptability, allowing you to customize each component to the specific needs of your used car dealership. The Excel financial model is an essential tool for managing your finances, adapting to the fast-paced automotive retail environment.

🚙 Plotting the Course for Your Dealership

Start your journey in the used car industry with a strategic and comprehensive business plan. Our Used Car Dealer Business Plan Template is not just a document; it’s a blueprint for building a thriving and customer-focused automotive business.

📥 Ready to Shift Gears into Entrepreneurship?

Take the first step towards a successful used car dealership. Click HERE to access this essential resource and begin planning the road map for your automotive venture.

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All of our business plans come with FREE business plan writing tutorials.  Business plan writing tutorials range from customizing your executive summary section to using our proprietary financial model!!

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Want us to complete your business plan template for you ( additional charges and restrictions apply )?  Not a problem!  Just complete our questionnaire, email it to us, and, once approved AND final payment is made, your completed business plan template will be ready in as little as 1 business day !

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"Free" Business Plan Templates

• Pretty Cool - Business Plan Structure
• Excellent - Industry-Related Research
• Awesome - Customized Financial Projections for your Industry
• Even MORE Awesome -Template Written by Paul Borosky, MBA.
• - Fill-in-the-highlighted-areas Format
• - Completed Pricing Strategy
• - SWOT Analysis Completed
• - Organizational Chart
• - Funding Request Section
• - Step-by-Step Tutorial for Business Plan Doc.
• - Step-by-Step Tutorial for Financial Projections Model

Quality Business Plan Templates

• Excellent - Industry-Related Research ($100 value)
• Awesome - Customized Financial Projections for your Industry ($300 value)
• Even MORE Awesome - Template Written by Paul Borosky, MBA.
• Plus... - Fill-in-the-highlighted-areas Format
• Plus... - Completed Pricing Strategy
• Plus... - SWOT Analysis Completed
• Plus... - Organizational Chart... Done!
• Plus... - Funding Request Section... Yes!
• Plus... - Step-by-Step Tutorial for Business Plan Doc.
• Plus... - Step-by-Step Tutorial for Financial Projections Model

Used Car Dealer Business Plan Templates Includes:

• Executive Summary
• Company Description
• Used Car Dealer related Industry Analysis INCLUDED!
• Organizational Structure.
• Funding Request
• 12-month profit and loss statement
• 5-year pro forma income statement
• Basic customizable Excel File
• Ability to change revenues, costs, and labor.
• 12 Profit and Loss
• 5 Yr Annual Projections.

Instructional Video:

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For Questions about my template BEFORE PURCHASING or having difficulty downloading it, feel free to call me at:

321-948-9588

Available Monday - Friday from 8 AM to 9 PM EST. (Usually)

IMPORTANT NOTE - I DO NOT OFFER FREE PHONE CONSULTATIONS AFTER PURCHASING THE TEMPLATE.

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Revving Up Success: The Ultimate Used Car Dealer Business Plan Template

Accelerating into the used car market.

Quality Business Plan introduces a Used Car Dealer business plan template, precisely engineered as a customizable Word document and Excel financial model. This essential toolkit is crafted for entrepreneurs gearing up to enter the used car sales industry or aiming to drive their existing dealership to new heights. It offers a targeted, sector-specific blueprint for business planning, vital for navigating the competitive and dynamic world of used car sales.

Designing a Roadmap for Dealership Dominance

This all-inclusive template lays out the key strategies for establishing and operating a prosperous used car dealership. It features important sections such as an Executive Summary, Company Description, Industry Analysis, Organizational Structure, and Marketing Strategies. Each component is carefully devised to tackle the specific challenges and opportunities within the used car market, ensuring a detailed and actionable business plan.

Streamlined Planning With Automotive Expertise

Recognizing the complexities of business planning in the automotive sector, Quality Business Plan offers straightforward tutorial support. These tutorials, accessible on their website, guide users through each aspect of the template, simplifying the planning process for both veteran auto dealers and newcomers to the industry.

Marketing Strategies for High-Octane Growth

Effective marketing is crucial for a used car dealership to stand out and attract buyers. The template includes comprehensive marketing strategies that utilize digital platforms and local advertising, crucial for showcasing vehicle inventory and building a strong brand presence in the community.

Financial Blueprints for a Profitable Dealership

Robust financial planning is the engine of a successful used car dealership. The template features an extensive financial planning section, including a Funding Request and detailed financial projections like 12-month profit and loss statements and 5-year pro forma income statements, tailored specifically for the used car sales industry.

Conclusion: Driving Forward in the Used Car Sales Arena

In conclusion, Quality Business Plan's Used Car Dealer business plan template is more than just a planning document; it's a strategic guide for success in the used car sales sector. This template equips entrepreneurs with the necessary tools and insights to launch or expand their used car dealership, setting the stage for a successful, competitive, and profitable venture in the ever-evolving automotive market.

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Car Dealership Business Plan

A car dealership is a company that sells new or used vehicles to the general public under the terms of a dealership agreement with a carmaker or its sales subsidiary. Car dealerships are rewarding because they are connected to both the wholesale and retail markets.

Are you looking to start writing a business plan for your car dealership business? Creating a business plan is essential to starting, growing, and securing funding for your business. We have prepared a car dealership business plan template for you to help in start writing yours.

Free Business Plan Template

Download our free business plan template now and pave the way to success. Let’s turn your vision into an actionable strategy!

• Fill in the blanks – Outline
• Financial Tables

How to Write a Car Dealership Business Plan?

Writing a car dealership business plan is a crucial step toward the success of your business. Here are the key steps to consider when writing a business plan:

1. Executive Summary

An executive summary is the first section of the business plan intended to provide an overview of the whole business plan. Generally, it is written after the entire business plan is ready. Here are some components to add to your summary:

Start with a brief introduction:

Market opportunity:, mention your services:, management team:, financial highlights:, call to action:.

Ensure you keep your executive summary concise and clear, use simple language, and avoid jargon.

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2. Business Overview

Depending on what details of your business are important, you’ll need different elements in your business overview. Still, there are some foundational elements like business name, legal structure, location, history, and mission statement that every business overview should include:

About the business:

Provide all the basic information about your business in this section like:

• The name of the car dealership business and the concept behind it: new car dealership, used car dealership, small car dealership, luxury car dealership, private seller, online retailer, or something else.
• Company structure of your car dealership business whether it is a sole proprietorship, LLC, partnership firm, or others.
• Location of your car dealership and the reason why you selected that place.

Mission statement:

Business history:, future goals:.

This section should provide an in-depth understanding of your car dealership business. Also, the business overview section should be engaging and precise.

3. Market Analysis

Market analysis provides a clear understanding of the market in which your car dealership business will run along with the target market, competitors, and growth opportunities. Your market analysis should contain the following essential components:

Target market:

Market size and growth potential:, competitive analysis:, market trends:, regulatory environment:.

Some additional tips for writing the market analysis section of your business plan:

• Use a variety of sources to gather data, including industry reports, market research studies, and surveys.
• Be specific and provide detailed information wherever possible.
• Include charts and graphs to help illustrate your key points.
• Keep your target audience in mind while writing the business plan.

4. Products And Services

The product and services section of a car dealership business plan should describe the specific services and products that will be offered to customers. To write this section should include the following:

List the product and services:

• Create a list of the services that your car dealership will offer, which may luxury cars, new cars, used cars, maintenance, repairs, etc.
• Describe each product and service: For each service, provide a detailed description of what it entails, and the qualifications of the professionals who will provide the service.

Emphasize safety and quality:

Overall, a business plan’s product and services section should be detailed, informative, and customer-focused. By providing a clear and compelling description of your offerings, you can help potential investors and readers understand the value of your business.

5. Sales And Marketing Strategies

Writing the sales and marketing strategies section means a list of strategies you will use to attract and retain your clients. Here are some key elements to include in your sales & marketing plan:

Develop your unique selling proposition (USP):

Determine your pricing strategy:, marketing strategies:, sales strategies:.

Overall, the sales and marketing strategies section of your business plan should outline your plans to attract and retain customers and generate revenue. Be specific, realistic, and data-driven in your approach, and be prepared to adjust your strategies based on feedback and results.

6. Operations Plan

When writing the operations plan section, it’s important to consider the various aspects of your business processes and procedures involved in operating a business. Here are the components to include in an operations plan:

Hiring plan:

Operational process:, inventory management:.

By including these key elements in your operations plan section, you can create a comprehensive plan that outlines how you will run your car dealership business.

7. Management Team

The management team section provides an overview of the individuals responsible for running the car dealership business. This section should provide a detailed description of the experience and qualifications of each manager, as well as their responsibilities and roles.

Key managers:

Organizational structure:, compensation plan:, board of advisors:.

Describe the key personnel of your company and highlight why your business has the fittest team.

8. Financial Plan

When writing the financial plan section of a business plan, it’s important to provide a comprehensive overview of your financial projections for the first few years of your business.

Profit & loss statement:

Cash flow statement:, balance sheet:, break-even point:, financing needs:.

Remember to be realistic with your financial projections, and to provide supporting evidence for all of your estimates.

9. Appendix

When writing the appendix section, you should include any additional information that supports the main content of your plan. This may include financial statements, market research data, legal documents, and other relevant information.

• Include a table of contents for the appendix section to make it easy for readers to find specific information.
• Include financial statements such as income statements, balance sheets, and cash flow statements. These should be up-to-date and show your financial projections for at least the first three years of your business.
• Provide market research data, such as statistics on the size of the industry, consumer demographics, and trends in the industry.
• Include any legal documents such as permits, licenses, and contracts.
• Provide any additional documentation related to your business plans, such as marketing materials, product brochures, and operational procedures.
• Use clear headings and labels for each section of the appendix so that readers can easily find the necessary information.

Remember, the appendix section of your car dealership business should only include relevant and important information that supports the main content of your plan.

The Quickest Way to turn a Business Idea into a Business Plan

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

This car dealership business plan sample will provide an idea for writing a successful business plan, including all the essential components of your business.

After this, if you are still confused about how to write an investment-ready business plan to impress your audience, then download our car dealership business plan pdf .

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Frequently asked questions, why do you need a car dealership business plan.

A business plan is essential for anyone looking to start or run a successful car dealership. It helps to get clarity in your business, secures funding, and identifies potential challenges while starting and growing your business.

Overall, a well-written plan can help you make informed decisions, which can contribute to the long-term success of your car dealership business.

How to get funding for your car dealership business?

There are several ways to get funding for your car dealership business, but one of the most efficient and speedy funding options is self-funding. Other options for funding are:

• Bank loan – You may apply for a loan in government or private banks.
• Small Business Administration (SBA) loan – SBA loans and schemes are available at affordable interest rates, so check the eligibility criteria before applying for it.
• Crowdfunding – The process of supporting a project or business by getting a lot of people to invest in your car dealership, usually online.
• Angel investors – Getting funds from angel investors is one of the most sought options for startups.

Apart from all these options, there are small business grants available, check for the same in your location and you can apply for it.

Where to find business plan writers for your car dealership business?

There are many business plan writers available, but no one knows your business and idea better than you, so we recommend you write your car dealership business plan and outline your vision as you have in your mind.

What is the easiest way to write your car dealership business plan?

A lot of research is necessary for writing a business plan, but you can write your plan most efficiently with the help of any car dealership business plan example and edit it as per your need. You can also quickly finish your plan in just a few hours or less with the help of our business plan software.

About the Author

Upmetrics Team

Upmetrics is the #1 business planning software that helps entrepreneurs and business owners create investment-ready business plans using AI. We regularly share business planning insights on our blog. Check out the Upmetrics blog for such interesting reads. Read more

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Car Dealership Business Plan Template

Written by Dave Lavinsky

Car Dealership Business Plan

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

We have helped over 5,000 entrepreneurs and business owners create business plans and many have used them to start or grow their Car Dealerships.

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

Executive Summary

Business overview.

Wilson Toyota, located in Albuquerque, New Mexico, is a brand-new Toyota dealership that sells, leases, and services new and used Toyota vehicles. Our dealership will feature all the models that Toyota makes, from budget models to hybrids. In addition to our large inventory, we also offer in-house financing and service and repairs for all Toyota owners. With our competitive prices and world-class customer service, we plan to be the #1 Toyota dealer in the Albuquerque area in the next five years.

Wilson Toyota is led by Dylan Wilson who has extensive sales experience, including selling used cars for a previous employer. His experience and knowledge make him the perfect candidate to run a Toyota franchise.

Product Offering

Wilson Toyota will maintain an inventory of new and used Toyota vehicles. We will sell all Toyota models, including hybrid and electric vehicles. Some of the models we plan to sell include:

Wilson Toyota will also have a service center to help Toyota owners with routine maintenance, repairs, recalls, and part replacements. Additionally, Wilson Toyota will offer financing and insurance options for customers with all credit scores. Customers will find financing options at Wilson Toyota that they will not find at other area dealerships.

Customer Focus

Wilson Toyota will primarily serve the residents in the Albuquerque area. The city is home to thousands of families, professionals, and businesses in need of vehicles. We will offer budget vehicles to those who only need a basic model as well as luxury vehicles to those who have the disposable income to purchase something high-end.

Management Team

Wilson Toyota is led by Dylan Wilson who has been in sales for 20 years. Dylan Wilson has sold products in numerous industries, with his most recent experience being at a competitor dealership. Dylan Wilson is a car aficionado. He knows everything about the most popular models and how to find the perfect vehicle for every customer. His experience and knowledge make him the perfect candidate to run a Toyota franchise.

While Dylan Wilson has never run a dealership himself, he has worked in the industry for years. As such Dylan Wilson has an in-depth knowledge of the dealerships industry, including the operations side (e.g., running day-to-day operations) and the business management side (e.g., staffing, marketing, etc.).

Success Factors

Wilson Toyota will be able to achieve success by offering the following competitive advantages:

• Location: Wilson Toyota’s location is near the center of town, giving us access to thousands of residents, local office workers, and passersby shopping in the city.
• Great service at an affordable price: The complete array of auto services offered by Wilson Toyota is comprehensive, and Wilson Toyota will offer these services at a much more affordable price.
• 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, Dylan Wilson knows all of the local leaders, newspapers and other influencers. As such, it will be relatively easy for Wilson Toyota to build brand awareness and an initial customer base.

Financial Highlights

Wilson Toyota is currently seeking $10 million to launch. Specifically, these funds will be used as follows:

• Lot design/build: $100,000
• Franchise fee: $400,000
• Inventory: $9 million
• Office equipment, supplies, and materials: $50,000
• Three months of overhead expenses (payroll, rent, utilities): $250,000
• Marketing costs: $100,000
• Working capital: $100,000

Company Overview

Who is wilson toyota, wilson toyota’s history.

Dylan Wilson incorporated Wilson Toyota as an S-Corporation in February 2023. The business is currently being run out of Dylan’s private office, but once the build-out on Wilson Toyota’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
• Hired an architect to design the showroom
• Determined equipment and inventory requirements
• Begun recruiting key employees

Wilson Toyota’s Services

Industry analysis.

Wilson Toyota competes against other new and used car dealerships, as well as online-only auto dealers and private consumer sales. The major trend in auto sales is that more people are purchasing vehicles online rather than through a salesperson. To meet this challenge, Wilson Toyota will offer flexible online purchasing through our website.

Even though the industry is changing, it is still growing and remaining profitable. According to Mordor Intelligence, the industry is expected to grow at a CAGR of 4% over the next five years. Even with the increasing demand for public transportation and cleaner forms of transportation, vehicles are still an essential purchase for most Americans.

According to a report by the National Automobile Dealers Association, the car dealership industry is a fragmented one, as the majority of operators are single-location businesses and employ fewer than 20 people. The market is estimated to grow to over $1 trillion in five years. Since there are no truly dominant competitors, barriers to entry are not as high as in many other industries, and a start-up can expect to have success in this growing market, Wilson Toyota 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 Wilson Toyota.

Customer Analysis

Demographic profile of target market.

Wilson Toyota will serve the residents of Albuquerque, New Mexico and the immediately surrounding areas as well as those who work in the area.

The area we serve is populated mostly by middle-class Millennials; as a result, they have the means to pay for higher-quality vehicles. Further, many are looking to transition to hybrid or electric vehicles, and middle-class earners are the primary demographic for these types of vehicles.

Customer Segmentation

Wilson Toyota will primarily target the following customer profiles:

• Professionals

Competitive Analysis

Direct and indirect competitors.

Wilson Toyota will face competition from other companies with similar business profiles. A description of each competitor company is below.

Gibson Toyota

Gibson Toyota’s goal is to give its customers the best possible experience online and at its physical store. The professional and fun-loving sales team is committed to its customers’ complete satisfaction. Gibson Toyota prides itself on building relationships with its customers throughout all phases of the automotive journey whether it’s sales, service, or parts. Gibson Toyota provides auto sales and services for both new Toyotas and used cars.

While we expect that Gibson Toyota will continue to thrive. But since it is located in the next city, we expect more and more customers will frequent Wilson Toyota based on proximity and competitive prices we offer.

Johnson Auto

Johnson Auto is an independent used car dealership specializing in certified pre-owned vehicles. The team believes that the car-buying process should be as hassle-free as possible. The team takes pride in serving its customers to the fullest. The service center is one of the best in the area, and the team strives to get its customers back on the road as soon as possible. Johnson Auto maintains a convenient online parts inventory, and if a customer can’t find what they want there, the team will help them find what they are looking for. At Johnson Auto, the team is willing to answer each and every question a customer might have during the car buying process.

Wilson Toyota has several advantages over Johnson Auto, in that it specializes in selling and servicing one make of vehicle. Wilson Toyota will provide these specialized services at an affordable price point.

Foster’s Chrysler, Jeep, Dodge, Ram

Foster’s Chrysler, Jeep, Dodge, and Ram offers both new and used inventory, as well as providing service for these makes. The dealership also retails auto parts and accessories. This location also participates in Toyota Rent a Car, in which new Toyotas are rented by the day. Camrys rent for $48.50 per day and Corollas rent for $37.80 per day.

Foster’s Chrysler, Jeep, Dodge, Ram offers some services 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 toward a rental clientele, we expect to draw buyers who seek the same level of support.

Competitive Advantage

Wilson Toyota will be able to offer the following advantages over its competition:

• Relationships: Having lived in the community for 25 years, Dylan Wilson knows all of the local leaders, newspapers, and other influencers. As such, it will be relatively easy for Wilson Toyota to build brand awareness and an initial customer base.

Marketing Plan

Brand & value proposition.

Wilson Toyota will offer a unique value proposition to its clientele:

• Convenient location
• Large inventory of new and used vehicles
• Highly trained specialists
• Significant personal attention
• Moderate price point
• Comfortable, customer-focused environment

Promotions Strategy

The promotions strategy for Wilson Toyota is as follows:

Commute Advertising

We will drive attention toward Wilson Toyota by leasing a billboard alongside multiple highways. Advertising on heavily traveled commute routes is an opportunity to alert large numbers of working individuals with disposable income of our opening.

Website & SEO Marketing

The company will utilize the website and SEO to attract new customers. The website will be easy to navigate and provide all the information and pictures needed to show our dealership and the vehicles we sell. The SEO strategy will also be managed to ensure that anyone searching for new Toyota vehicles will see our company listed at the top of the Bing or Google search engines.

Social Media Marketing

Social media is one of the most cost-effective and practical marketing methods for improving brand visibility. The company will use social media to develop engaging content, such as educational content about vehicles and customer reviews that will increase audience awareness and loyalty. Engaging with prospective clients and business partners on social media platforms like Facebook, Instagram, Twitter, and LinkedIn will also help understand changing customer needs.

Advertisement

Advertisements in print publications like newspapers, magazines, etc., are an excellent way for businesses to connect with their audience. The company will advertise its brand in popular magazines and news dailies. Obtaining relevant placements in industry magazines and journals will also help in increasing brand visibility.

Wilson Toyota’s pricing will be competitive so customers feel they receive great value when shopping for a new car. The customer can expect to receive quality services and personalized attention when patronizing the dealership.

Operations Plan

The following will be the operations plan for Wilson Toyota.

Operation Functions:

• Dylan Wilson will be the Owner of the company. He will oversee all staff and manage the general operations of the company. He will also partake in customer service and sales until he has employed a full staff of sales professionals. Dylan has spent the past year recruiting the following staff:
• Janie Wilson will serve as the dealership’s Administrative Assistant. She will assist Dylan with all the operational, executive, and administrative aspects of the business. She will also manage the phones until Dylan hires a receptionist.
• Joe Smith will be the Services Manager. He will oversee all the operations of the services department.
• Maria Kenway will be the Sales Manager. She will oversee all the sales staff and help out with customer service, managing sales, and the appraisal process for used vehicles.
• Dylan will hire a full staff of service technicians and sales professionals to help with the service, sales, and customer services functions.

Milestones:

Wilson Toyota will have the following milestones completed in the next six months.

• 3/202X Finalize lease agreement
• 4/202X Design and build out Wilson Toyota
• 5/202X Hire and train initial staff
• 6/202X Kickoff of promotional campaign
• 7/202X Launch Wilson Toyota
• 8/202X Reach break-even

Financial Plan

Key revenue & costs.

Wilson Toyota’s revenues will come primarily from the sale of vehicles and secondarily from the sales of parts/accessories and auto services.

Labor expenses are a major cost driver for dealerships with service departments. Service technicians are salaried; therefore, attractive compensation packages are necessary to maintain qualified staff. Furthermore, large commissions help the dealership keep the best salespeople on staff. Other major cost drivers for the company include the lease, franchise fees, inventory and parts, and marketing expenses.

Funding Requirements and Use of Funds

Key assumptions.

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

• Average annual franchise fees: $100,000
• Annual lease costs: $100,000

Financial Projections

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

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

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

What are the Main Types of Car Dealership Businesses?

There are a number of different kinds of car dealership businesses , some examples include: New Car Dealers, Used Car Dealership, and Online Car Dealership.

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

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

This is true for a used car dealership business plan as well.

What are the Steps To Start a Car Dealership Business?

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

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

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

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

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

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

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

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

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

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

• How to Start a Car Dealership Business

Where Can I Get a Car Dealership Business Plan PDF?

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

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Used Car Dealership Business Plan [Sample Template]

By: Author Tony Martins Ajaero

Home » Business ideas » Automotive Industry » Car Dealership

Are you about starting a used car dealership business online? If YES, here is a complete sample used car dealership business plan template & FREE feasibility report for starting a used car dealership business .

Used car dealership business as the name implies is all about selling used cars to willing buyers. Aside from the fact that the owners of used car dealership shops are known for selling used cars, they also go out of their way to source for people who want to sell their cars.

They buy used cars at favorable prices and then resell at a good price that guarantees profits for them. In a nutshell, they are in the business of buying and selling used cars.

If you are sure this type of business is what you want to do after you must have conducted your feasibility studies and market research, then the next step to follow is to write a good business plan; a detailed blue print of how you intend raising your seed capital, setting up the business, managing the flow of the business, sorting out tax and marketing your services etc.

The truth is that it is one thing to have a fantastic idea cum business plan but entirely another thing for the business plan to translate to money, which is why it is important to assemble a team of dedicated workers if you want to be successful with your used car dealership business .

Note that you can hardly run this type of business without the right network of other used car dealers. Below is a sample used car dealership business plan template that will help you successfully write yours without much stress;

A Sample Used Car Dealership Business Plan Template

1. Industry Overview

Players in the used car dealership industry sell used cars and they may fall into any of the following niche areas; brick and mortar used cars dealership shop, online used cars dealership shop, used luxury cars dealership business and multi – brand and multi – maker used car dealers.

Recent statistics have it that the total annual revenue for used car dealership in the united states of America is US0 billion with an annual growth of 2.4 percent.

With massive annual sales of nearly US$370 billion, one can confidently say that the used vehicle dealership industry represents almost half of the United States’ auto retail market and it is of course the largest retail segment of the U.S. economy.

For instance, in 2005, approximately 44 million used cars were sold in the United States, which is more than double that of the nearly 17 million new cars sold. The average price of used cars in the United States is $8,786. The industry has 127,940 registered car dealership businesses that employ a total of 237,788 people.

In the United States used car dealership market, the top four major players account for less than 20.0 percent of industry revenue in 2015, with the biggest used car dealer, CarMax dealership, generating about 12.6 percent of revenue. Recent findings also indicate that the industry concentration has increased over the last five years prior to 2015.

The automotive industry with reference to used car dealership is indeed flourishing because more and more consumers are becoming aware of the need to cut unnecessary spending as it relates to purchasing cars, insurance policies and also the need to sell used cars as fast as possible.

Some of the factors that encourage aspiring entrepreneurs to venture into opening a used car dealership shop is the fact that the amount needed to start the business especially when you choose to start a small shop is not on the high side compared to other small – scale businesses.

That makes it easier for entrepreneurs who are interested in the business to come into the industry at any time; the entry barriers are quite affordable and any serious-minded entrepreneur can comfortably raise the startup capital without collecting loans from the bank especially if they can convince owners of used cars who are willing to sell their cars to drop the cars with them while they source for buyers.

Lastly, a used car dealership business might not be entirely easy to start, but one thing is certain, it is a straightforward business that can generate huge and steady profits if well positioned and properly managed.

People often think that starting this type of business does not require any professional skills; in as much as it is true, you would still need a good knowledge of automobiles, good business and bargaining skills and of course customer services skills if indeed you want to build a profitable business.

2. Executive Summary

Jason Hyacinth® Used Car Dealership, Inc. is a registered used car dealership shop that will be located in one of the busiest streets in Spruce, Chestnut and Walnut Streets – Philadelphia.

We have been able to lease a facility that is big enough (a 5 thousand square foot facility) to fit into the design of the kind of standard used car dealership shop that we intend launching and the facility is located in a corner piece along a major road close to the city center.

Jason Hyacinth® Used Car Dealership, Inc. sell and buy used cars from different manufacturers in the United States and abroad. We are set to service a wide range of clientele in and around Philadelphia.

We are aware that there are several large and small online and offline car dealership shops all around Spruce – Philadelphia, which is why we spent time and resources to conduct a thorough feasibility studies and market survey so as to be well positioned to favorably compete with all our competitors. We have an online service option for our customers, and our garage is well secured.

Jason Hyacinth® Used Car Dealership, Inc. will ensure that all our customers are given first class treatment whenever they visit our garage. We have a CRM software that will enable us manage a one on one relationship with our customers no matter how large they may be.

Jason Hyacinth® Used Car Dealership, Inc. will at all times demonstrate her commitment to sustainability, both individually and as a firm, by actively participating in our communities and integrating sustainable business practices wherever possible.

We will ensure that we hold ourselves accountable to the highest standards by meeting our customers’ needs precisely and completely whenever they patronize our used cars.

Jason Hyacinth® Used Car Dealership, Inc. is a family business that is owned by Jason Hyacinth and his immediate family members. Jason Hyacinth has a Diploma in Automotive Technology, over 5 years’ experience in the retailing industry, working for some of the leading brands in the United States.

Although the business is launching out with just one outlet in Spruce, Chestnut and Walnut Streets – Philadelphia, but there is a plan to open other outlets all around major cities in the United States.

3. Our Products and Services

Jason Hyacinth® Used Car Dealership, Inc. is in the used car dealership industry to service a wide range of clients and of course to make profit, which is why we will ensure we go all the way to make available a wide range of used cars from top manufacturing brands in the United States and other countries of the world.

We will ensure that we do all that is permitted by the law of the United States to achieve our aim and objectives of starting the business.

4. Our Mission and Vision Statement

• Our vision is to run a car dealership garage that deals in used cars from all the brands in the United States of America.
• Our mission is to establish a world – class used car dealership garage business that will make available a wide range of used cars from top manufacturing brands at affordable prices to the residence of Philadelphia and other key cities in the United States of America and Canada where we intend opening of chains of used cars dealership garages.

Our Business Structure

Our intention of starting a used car dealership business is to build a standard used car dealership garage in Philadelphia. Although our business might not be as big as CarMax dealership, and AutoNation Inc.et al, but will ensure that we put the right structures in place that will support the kind of growth that we have in mind while setting up the business.

We will ensure that we hire people that are qualified, honest, customer centric and are ready to work to help us build a prosperous business that will benefit all the stakeholders. As a matter of fact, profit-sharing arrangement will be made available to all our senior management staff and it will be based on their performance for a period of ten years or more.

In view of that, we have decided to hire qualified and competent hands to occupy the following positions;

• Chief Executive Officer (Owner)
• Garage Manager
• Human Resources and Admin Manager

Sales and Marketing Manager

Information Technologist

• Accountants/Cashiers
• Sales Agents/Customer Services Executive

5. Job Roles and Responsibilities

Chief Executive Officer – CEO:

• Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results; developing incentives; developing a climate for offering information and opinions; providing educational opportunities.
• Responsible for fixing prices and signing business deals
• Responsible for providing direction for the business
• Creates, communicates, and implements the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
• Responsible for signing checks and documents on behalf of the company
• Evaluates the success of the organization

Admin and HR Manager

• Responsible for overseeing the smooth running of HR and administrative tasks for the organization
• Maintains office supplies by checking stocks; placing and expediting orders; evaluating new products.
• Ensures operation of equipment by completing preventive maintenance requirements; calling for repairs.
• Enhances department and organization reputation by accepting ownership for accomplishing new and different requests; exploring opportunities to add value to job accomplishments.
• Defining job positions for recruitment and managing interviewing process
• Carrying out staff induction for new team members
• Responsible for training, evaluation and assessment of employees
• Responsible for arranging travel, meetings and appointments
• Oversee the smooth running of the daily office cum business activities.

Garage Manager:

• Responsible for managing the daily activities in the used car garage
• Ensures that proper records of cars are kept and the garage does not run out of cars
• Ensures that the garage facility is in tip top shape and cars are properly arranged and easy to locate
• Interfaces with third – party suppliers (vendors)
• Controls distribution and supply chain inventory
• Supervise the workforce in the used car garage sales floor
• Manages external research and coordinate all the internal sources of information to retain the organizations’ best customers and attract new ones
• Models demographic information and analyze the volumes of transactional data generated by customer purchases
• Identifies, prioritizes, and reaches out to new partners, and business opportunities et al
• Identifies development opportunities; follows up on development leads and contacts; participates in the structuring and financing of projects; assures the completion of development projects.
• Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
• Develops, executes and evaluates new plans for expanding sales
• Documents all customer contact and information
• Represents the company in strategic meetings
• Helps to increase sales and growth for the company
• Manages the organization website
• Handles ecommerce aspect of the business
• Responsible for installing and maintenance of computer software and hardware for the organization
• Manages logistics and supply chain software, Web servers, e-commerce software and POS (point of sale) systems
• Manages the organization’s CCTV
• Handles any other technological and IT related duties

Accountant/Cashier:

• Responsible for preparing financial reports, budgets, and financial statements for the organization
• Provides managements with financial analyses, development budgets, and accounting reports
• Responsible for financial forecasting and risks analysis
• Performs cash management, general ledger accounting, and financial reporting
• Responsible for developing and managing financial systems and policies
• Responsible for administering payrolls
• Ensuring compliance with taxation legislation
• Handles all financial transactions for the organization
• Serves as internal auditor for the organization

Client Service Executive

• Ensures that all contacts with clients (e-mail, walk-In center, SMS or phone) provides the client with a personalized customer service experience of the highest level
• Through interaction with customers on the phone, uses every opportunity to build client’s interest in the company’s products and services
• Manages administrative duties assigned by the human resources and admin manager in an effective and timely manner
• Consistently stays abreast of any new information on the organizations’ products, promotional campaigns etc. to ensure accurate and helpful information is supplied to customers when they make enquiries
• Provides information about warranties, manufacturing specifications, care and maintenance of merchandise and delivery options
• Responsible for cleaning and washing all the cars in the garage at all times
• Ensures that toiletries and supplies don’t run out of stock
• Cleans both the interior and exterior of the garage facility
• Handles any other duty as assigned by the garage manager

6. SWOT Analysis

Our intention of opening just one outlet of our used car dealership in Spruce, Chestnut and Walnut Streets – Philadelphia is to test run the business for a period of 2 to 5 years to know if we will invest more money, expand the business and then open other outlets in other cities in the United States.

We are quite aware that there are several used car dealership garages all over Philadelphia and even in the same location where we intend locating ours, which is why we are following the due process of establishing a business. We know that if a proper SWOT analysis is conducted for our business, we will be able to position our business to maximize our strength, leverage on the opportunities that will be available to us, mitigate our risks and be welled equipped to confront our threats.

Jason Hyacinth® Used Car Dealership, Inc. employed the services of an expert HR and Business Analyst with bias in car dealership business to help us conduct a thorough SWOT analysis and to help us create a Business model that will help us achieve our business goals and objectives. This is a summary of the SWOT analysis that was conducted for Jason Hyacinth® Used Car Dealership, Inc.;

Our location, business model (we will operate both a physical garage and online store), varieties of payment options, wide range of used cars from different manufacturing brands and models and our excellent customer service culture will definitely count as a strong strength for Jason Hyacinth® Used Car Dealership, Inc. So also, our team of highly qualify staff is also a plus for us.

A major weakness that may count against us is the fact that we are a new used car dealership garage in Philadelphia and we don’t have the financial capacity to compete with multi – million dollars used car garages when it comes to retailing at a rock bottom prices.

• Opportunities:

The fact that we are going to be operating our used car garage in a corner piece property along a major road close to one of the largest residential estates in Spruce, Chestnut and Walnut Streets – Philadelphia provides us with unlimited opportunities to sell our used cars to a large number of individuals and corporate organizations.

We have been able to conduct thorough feasibility studies and market survey and we know what our potential clients will be looking for when they visit our used car garage.

Just like any other business, one of the major threats that we are likely going to face is economic downturn. It is a fact that economic downturn affects purchasing/spending power. Another threat that may likely confront us is the arrival of a new used car dealership outlet in the same location where ours is located and even online. So also, unfavorable government policies may also pose a threat to businesses such as ours.

7. MARKET ANALYSIS

• Market Trends

Experts projected that in 2017, the used car dealership shops industry is expected to profit from growing global economic conditions. Per capita income levels have scaled across the globe and the growing middle class in emerging economies have looked to purchase their own cars. As the demand for used cars increase, used car dealership garages will make more sales. A decline in demand for new automobiles has stimulated an increase in the sale of used cars.

One notable trend in the used car dealership industry is that most used car dealers are leveraging on online store to sell their cars to a larger market. As a matter of fact, it is easier to sell and export used cars from the United States and Canada to countries in Africa.

Lastly, in recent time, the used car dealership garage landscape has seen tremendous changes in the last 20 years; it has grown from the smaller outlets to a more organized and far reaching venture. The introduction of franchise and online car dealership garage makes it easier for a used car dealership garage to reach out to a larger market far beyond the areas where his physical store is located.

8. Our Target Market

Those who patronize used cars cut across all genders who are above 18 years and with the financial means; hence the target market for used car dealership garage business is all encompassing. Your target market can’t be restricted to just a group of people, but all those who desire to own a car.

In view of that, we have positioned our used car dealership garage to service the residents of Spruce, Chestnut and Walnut Streets – Philadelphia and every other location where our franchise cum outlets will be located all over key cities in the United States of America and Canada. We have conducted our market research and feasibility studies and we have ideas of what our target market would be expecting from us.

We are in business to retail a wide range of used cars to the following groups of people;

• Middle Class Families
• Low Earners

Our Competitive Advantage

A close study of the used car dealership garage industry reveals that the market has become much more intensely competitive over the last decade. As a matter of fact, you have to be highly creative, customer centric and proactive if you must survive in this industry. We are aware of the stiff competition and we are well prepared to compete favorably with other leading used car dealership garages in Philadelphia and throughout the United States and Canada.

Jason Hyacinth® Used Car Dealership, Inc. is launching a standard dealership garage that will indeed become the preferred choice of residents of Spruce, Chestnut and Walnut Streets – Philadelphia and every other location where our outlets will be opened.

One thing is certain; we will ensure that we have a wide range of used cars brands and models from leading manufacturers available in our garage at all times. It will be difficult for customers to visit our garage and not see the type of used car they are looking for.

One of our business goals is to make Jason Hyacinth® Used Car Dealership, Inc. a one stop used car dealership shop. Our excellent customer service culture, online store, various payment options and highly secured facility will serve as a competitive advantage for us.

Lastly, our employees will be well taken care of, and their welfare package will be among the best within our category in the industry meaning that they will be more than willing to build the business with us and help deliver our set goals and achieve all our aims and objectives. We will also give good working conditions and commissions to freelance sales agents that we will recruit from time to time.

9. SALES AND MARKETING STRATEGY

• Sources of Income

Jason Hyacinth® Used Car Dealership, Inc. is in business to retail a wide range of used cars to the residents of Spruce, Chestnut and Walnut Streets – Philadelphia. In essence, our source of income will be the retailing of a wide range of used cars from different car manufacturing brands.

10. Sales Forecast

When it comes to used car dealership business, if your garage is well stocked with various types of used cars from different manufacturing brands and models and centrally positioned, you will always attract customers and that will sure translate to increase in revenue generation for the business.

We are well positioned to take on the available market in Philadelphia and we are quite optimistic that we will meet our set target of generating enough profits from the first six months of operation and grow the business and our clientele base.

We have been able to critically examine the used car dealership industry, we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. The sales projections are based on information gathered on the field and some assumptions that are peculiar to startups in Spruce, Chestnut and Walnut Streets – Philadelphia.

Below are the sales projections for Jason Hyacinth® Used Car Dealership, Inc. it is based on the location of our business and other factors as it relates to used car dealership garage startups in the United States;

• First Fiscal Year: $450,000
• Second Fiscal Year: $750,000
• Third Fiscal Year: $1.2 Million

N.B : This projection was done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and any major competitor within our market space. Please note that the above projection might be lower and at the same time it might be higher.

• Marketing Strategy and Sales Strategy

Before choosing a location for Jason Hyacinth® Used Car Dealership, Inc. we conduct a thorough market survey and feasibility studies in order for us to penetrate the available market and become the preferred choice for residents of Spruce – Philadelphia. We have detailed information and data that we were able to utilize to structure our business to attract the number of customers we want to attract per time.

We hired experts who have good understanding of the used car dealership industry to help us develop marketing strategies that will help us achieve our business goal of winning a larger percentage of the available market in Spruce – Philadelphia.

In summary, Jason Hyacinth® Used Car Dealership, Inc. will adopt the following sales and marketing approach to win customers over;

• Open our used car dealership garage in a grand style with a party for all
• Introduce our used car dealership garage by sending introductory letters alongside our brochure to households, offices and other key stakeholders in and around Spruce -Philadelphia
• Ensure that we have a wide range of used cars from different brands at all times.
• Make use of attractive hand bills to create awareness and also to give direction to our garage
• Position our signage/flexi banners at strategic places around Spruce, Chestnut and Walnut Streets – Philadelphia
• Position our greeters to welcome and direct potential customers
• Create a loyalty plan that will enable us reward our regular customers
• Engage on roadshows within our neighborhood to create awareness for our used car garage
• List our business and products on yellow pages ads (local directories)
• Leverage on the internet to promote our business
• Engage in direct marketing and sales
• Encourage the use of Word of mouth marketing (referrals)

11. Publicity and Advertising Strategy

Despite the fact that our used car dealership garage is well located, we will still go ahead to intensify publicity for the business.

Jason Hyacinth® Used Car Dealership, Inc. has a long-term plan of opening outlets in various locations all around key cities in the United States and Canada which is why we will deliberately build our brand to be well accepted in Philadelphia before venturing out.

As a matter of fact, our publicity and advertising strategy is not solely for winning customers over but to effectively communicate our brand. Here are the platforms we intend leveraging on to promote and advertise Jason Hyacinth® Used Car Dealership, Inc.;

• Place adverts on community based newspapers, radio and TV stations
• Encourage the use of word of mouth publicity from our loyal customers
• Leverage on the internet and social media platforms like YouTube, Instagram, Facebook, Twitter, LinkedIn, Snapchat, Google+ and other platforms to promote our business.
• Ensure that our we position our banners and billboards in strategic positions all around Spruce, Chestnut and Walnut Streets – Philadelphia
• Distribute our fliers and handbills in target areas in and around our neighborhood
• Advertise our used cars dealership business in our official website and employ strategies that will help us pull traffic to the site
• Brand all our official cars and trucks and ensure that all our staff members and management staff wear our branded shirt or cap at regular intervals

12. Our Pricing Strategy

Aside from quality, pricing is one of the key factors that gives leverage to used car dealership garages, it is normal for consumers to go to places where they can get used cars at cheaper prices which is why big players in the industry will attract loads of clients.

We know we don’t have the capacity to compete with big players in the used car dealership industry but we will ensure that the prices and quality of all the used cars that are available in our garage are competitive with what is obtainable amongst used car garages within our level.

• Payment Options

The payment policy adopted by Jason Hyacinth® Used Car Dealership, Inc. is all inclusive because we are quite aware that different customers prefer different payment options as it suits them but at the same time, we will ensure that we abide by the financial rules and regulation of the United States of America.

Here are the payment options that Jason Hyacinth® Used Car Dealership, Inc. will make available to her clients;

• Payment via bank transfer
• Payment with cash
• Payment via credit cards / Point of Sale Machines
• Payment via online bank transfer
• Payment via check
• Payment via mobile money transfer
• Payment via bank draft

In view of the above, we have chosen banking platforms that will enable our client make payment for purchasing our used cars without any stress on their part. Our bank account numbers will be made available on our website and promotional materials to clients who may want to deposit cash or make online transfers for our used cars.

13. Startup Expenditure (Budget)

In setting up any business, the amount or cost will depend on the approach and scale you want to undertake. If you intend to go big by renting/leasing a big facility, then you would need a good amount of capital as you would need to ensure that your employees are well taken care of, and that your facility is conducive enough for workers to be productive.

The materials and equipment that will be used are nearly the same cost everywhere, and any difference in prices would be minimal and can be overlooked. As for the detailed cost analysis for starting a used car dealership business; it might differ in other countries due to the value of their money.

These are the key areas where we will spend our startup capital;

• The total fee for registering the business in the Unites States of America – $750
• Legal expenses for obtaining licenses and permits as well as the accounting services (software, P.O.S machines and other software) – $3,300
• Marketing promotion expenses for the grand opening of Jason Hyacinth® Used Car Dealership, Inc. in the amount of $3,500 and as well as flyer printing (2,000 flyers at $0.04 per copy) for the total amount of $3,580
• The cost for hiring business consultant – $2,500
• Insurance (general liability, workers’ compensation and property casualty) coverage at a total premium – $2,400
• The cost for payment of rent for 12 months at $1.76 per square feet in the total amount of $105,600
• The cost for garage remodeling – $20,000
• Other start-up expenses including stationery ($500) and phone and utility deposits ( $2,500 )
• Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $60,000
• The cost for start-up inventory (stocking with a wide range of used cars from different manufacturing brands) – $350,000
• The cost for counter area equipment – $9,500
• The cost for store equipment (cash register, security, ventilation, signage) – $13,750
• The cost of purchase and installation of CCTVs: $10,000
• The cost for the purchase of office furniture and gadgets (Computers, Printers, Telephone, TVs, Sound System, tables and chairs et al): $4,000
• The cost of launching a website: $600
• The cost for our opening party: $7,000
• Miscellaneous: $10,000

We would need an estimate of $750,000 to successfully set up our standard used car dealership garage in Spruce – Philadelphia.

Generating Startup Capital for Jason Hyacinth® Used Car Dealership, Inc.

Jason Hyacinth® Used Car Dealership, Inc. is a private registered business that is solely owned and financed by Jason Hyacinth and his immediate family members. They do not intend to welcome any external business partner which is why he has decided to restrict the sourcing of the startup capital to 3 major sources.

These are the areas we intend generating our startup capital;

• Generate part of the startup capital from personal savings
• Source for soft loans from family members and friends
• Apply for loan from my Bank

N.B: We have been able to generate about $250,000 ( Personal savings $200,000 and soft loan from family members $50,000 ) and we are at the final stages of obtaining a loan facility of $500,000 from our bank. All the papers and documents have been signed and submitted, the loan has been approved and any moment from now our account will be credited with the amount.

14. Sustainability and Expansion Strategy

The future of a business lies in the number of loyal customers that they have, the capacity and competence of their employees, their investment strategy and the business structure. If all of these factors are missing from a business, then it won’t be too long before the business close shop.

One of our major goals of starting Jason Hyacinth® Used Car Dealership, Inc. is to build a business that will survive off its own cash flow without injecting finance from external sources once the business is officially running. We know that one of the ways of gaining approval and winning customers over is to retail our wide range of used cars a little bit cheaper than what is obtainable in the market and we are well prepared to survive on lower profit margin for a while.

Jason Hyacinth® Used Car Dealership, Inc. will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and retraining of our workforce is at the top burner.

We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.

Check List/Milestone

• Business Name Availability Check: Completed
• Business Registration: Completed
• Opening of Corporate Bank Accounts: Completed
• Securing Point of Sales (POS) Machines: Completed
• Opening Mobile Money Accounts: Completed
• Opening Online Payment Platforms: Completed
• Application and Obtaining Tax Payer’s ID: In Progress
• Application for business license and permit: Completed
• Purchase of Insurance for the Business: Completed
• Leasing of facility and remodeling the garage: In Progress
• Conducting Feasibility Studies: Completed
• Generating capital from family members: Completed
• Applications for Loan from the bank: In Progress
• Writing of Business Plan: Completed
• Drafting of Employee’s Handbook: Completed
• Drafting of Contract Documents and other relevant Legal Documents: In Progress
• Design of The Company’s Logo: Completed
• Graphic Designs and Printing of Promotional Materials: In Progress
• Recruitment of employees: In Progress
• Purchase of the needed furniture, computers, electronic appliances, office appliances and CCTV: In progress
• Creating Official Website for the Company: In Progress
• Creating Awareness for the business both online and around the community: In Progress
• Health and Safety and Fire Safety Arrangement (License): Secured
• Opening party planning: In Progress
• Compilation of list of used cars available in our garage: Completed
• Establishing business relationship with vendors – used cars auction houses and other used cars dealership garages: In Progress

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Car Dealership Business Plan Template [Updated 2024]

Car Dealership Business Plan

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

The following car dealership business plan template gives you the key elements to include in a winning business plan. In addition to this template, a successful business plan will include market research to support your business concept, help you better understand the car dealership industry, market trends, car prices and your target customers. It will also help you craft a smart marketing plan and a strong financial plan.

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

Sample Business Plan For New Car Dealerships

Below are links to each of the key sections of a sample business plan that can be used for all types of car dealerships including a luxury car dealership, an online car dealership, new car dealers, and used car dealerships.

• Executive Summary – The executive summary provides an overview of your business opportunity and summarizes the business plan.
• Company Overview – The company analysis includes information about your business concept, the types of vehicles you plan to sell, car repair and maintenance services and legal structure.
• Industry Analysis – The industry analysis includes market research that supports your business and provides insights into market trends and the automotive industry.
• Customer Analysis – The customer analysis provides an overview of your target market and the purchasing habits of these potential customers.
• Competitive Analysis – The competitive analysis should identify your direct and indirect competitors and highlight your competitive advantage.
• Marketing Plan – The marketing plan includes your marketing strategy, pricing strategy and how you will build brand awareness utilizing social media platforms and other forms of digital marketing.
• Operations Plan – The Operations Plan includes information on your dealership’s day-to-day operations including inventory management and auto sales, and processes in the service department to maintain customer satisfaction.
• Management Team – The management team section includes a profile of the business owner and business management, their experience and company responsibilities.
• Financial Plan – The financial plan includes financial projections, a cash flow statement, profit and loss statement, and balance sheet.

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Car Dealership Business Plan Home I. Executive Summary II. Company Overview III. Industry Analysis IV. Customer Analysis V. Competitive Analysis VI. Marketing Plan VII. Operations Plan VIII. Management Team IX. Financial Plan

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Car Dealership Business Plan Template

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This car dealership business plan template has 26 pages and is a MS Word file type listed under our business plan kit documents.

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[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

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I’m a Car Salesperson: Here Are 6 Ways To Save Money at the Dealership

A fter a couple years of car dealers being able to successfully sell vehicles on their lots well above sticker price because of low inventory and lack of competition, the tide has turned. As of March 2023, inventory is back up and dealer incentive and savings programs have returned too. That means there are opportunities to get a good deal on a vehicle.

Be Aware: 10 New Cars To Avoid Buying in 2024

Try This: How To Get $340 Per Year in Cash Back on Gas and Other Things You Already Buy

To get some insider tips, GOBankingRates turned to the advice of a 24-year veteran in the car sales industry, Mike Davenport, owner of Mike’s Car Store . Davenport has been on social media since 2010, teaching people how to negotiate car deals and wade through red tape.

Before you start car shopping, check out these six ways to save money at the dealership , courtesy of Davenport.

Sponsored: Owe the IRS $10K or more? Schedule a FREE consultation to see if you qualify for tax relief.

Plan To Buy Local

Davenport said that you should start by finding a vehicle at a local dealership that you’re interested in buying. Next, look at other dealerships up to 100 or so miles from your area and find three to five more vehicles of the same make and model with the same equipment.

He said to save the data you gather on each of those vehicles, so you can use it as a negotiating tool at your local dealership. 

Get the Salesperson Interested in Landing Your Business

Next, according to Davenport, you should have a conversation with a salesperson or the sales manager at the local dealership that has the vehicle you want. He said you should say to the salesperson, “I want to keep my business local — do you want me to keep my business local?” Davenport said the reason for this question is to get a “yes.” 

“They’re always going to say yes,” he said. “That’s when you say ‘awesome,’ and you reiterate that you’re going to do all of your vehicle service needs […] at the dealership.”

Read Next: 4 Sneaky Car Dealership Scams That Will Be Illegal in 2024

Davenport said that’s also the time to bring up the other dealers you researched that have comparable vehicles. He said to say, “Listen, I did look at a couple [of] other vehicles, and I like them just as much as I like yours, but you’re local to me. Do you want me to keep my business local?”

He said that he knows you will be repeating yourself, but it’s very good to get the salesperson or sales manager saying ‘yes’ over and over and over again. He said that dealerships are unwilling to lose potential buyers because they know you’ll probably never come back once you walk away. 

Never Tell a Dealership You’re Paying Cash

Davenport said you should never tell the salesperson that you’re paying cash for the vehicle you want to buy because it will lessen your chances of getting the best deal possible. Dealers might reduce the purchase price of the car if they think they can make up the difference in financing. But if you say you are paying cash — or even going through your bank for financing — that option is unavailable to them.

If you have been pre-approved for financing through your bank, and you want to disclose that fact, you can tell the salesperson that you might be interested in financing through the dealer, Davenport said. That will leave the dealer with the hope that it can make some money through financing, and it might be willing to discount the purchase price of the car to get your business. 

Trade In Your Vehicle

Davenport recommends getting trade-in offers from several different dealerships, which can help you negotiate the best price for your trade-in vehicle. However, he cautioned that you should avoid trading in your car at dealers that have no interest in the make and model. For example, he said,  if you have a Toyota Corolla, don’t expect to get the best value for your trade-in at a Lexus dealership because it will likely give you the lowest amount possible and resell it at an auction to recoup what it paid for it. 

 He also said to consider listing your vehicle on Facebook Marketplace for the highest trade-in value or the lowest private party offer and see if any dealerships contact you to earn your business.

Negotiate Each Part of the Deal Separately

Davenport said to get the best deal, you have to negotiate each thing separately.”You do not interlace them,” he said. “You stay focused like a laser beam […], and when you’re happy with the price of the car, you move on to the trade. When you’re happy with the trade, you move on to financing — and after that is when you know you’ve got a great deal.”

Hire a Car-Buying Advocate

If you don’t feel you’re up to the task of negotiating each part of the deal separately, Davenport said a car-buying advocate will do all the legwork for you, including locating the car you want and negotiating the best deal. The only thing you’ll have to do, he said, is sign the papers. 

You will have to pay a fee to a car-buying advocate. One service, Car Buyer’s Advocate, charges $500 plus $100 for each trade to negotiate the best deal. However, some services charge between $1,000-$2,000 or $100-$200 per hour.

Car Buyer’s Advocate states that people can lose $2,000-$10,000 when buying a car on their own, so a fee of $500 (or even a little more) might be well worth it. The company states that the average savings on a new car when using its service is 18% under MSRP. And the average savings on a used car is 25% under retail.

If you decide to hire a service to help you negotiate the best deal on a vehicle, make sure it’s a car-buying advocate. Car-buying advocates charge a fee and offer services that work in your best interest. Car-buying services, however, are typically in cahoots with car dealerships and receive payments for generating leads. These services are not interested in helping you negotiate the best deal possible.  

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This article originally appeared on GOBankingRates.com : I’m a Car Salesperson: Here Are 6 Ways To Save Money at the Dealership

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