How to Build a Car Dealership

car dealership 3 image by Alexey Stiop from Fotolia.com

Starting any business is a costly endeavor but in the long run, has the potential to provide you with greater financial stability. In the case of a car dealership, there are several things you have to consider before beginning the construction, including zoning regulations costs, and market value. Also, make sure you have all the necessary licenses and permit before beginning construction or making any purchases.

Create your design and business plans and make sure you include enough lot space for vehicles and a showroom. Remember that dealerships dealing in new car sales often have models left over when they get new cars, so when deciding on size, take this into account. Also, be sure to include plans for a repair shop that caters to the types of cars you will be selling. If you are constructing a used car lot only, or a small business car lot, you will need less space, but still plan accordingly.

Gather your finances. This is the time when you should be applying for business loans and looking for investors. Make sure you look for cost saving strategies and compare prices on everything from contractors to construction materials. According to Reed Construction Data, the national average cost to build a new car dealership in 2008 was about $1.7 million.

Purchase the vacant land where you want to build your lot making sure that it is zoned for commercial use and that car dealerships are allowed. Typically, dealerships cannot be built near residential neighborhoods, so look for places that are on major roads or easily accessible from the interstate.

Shop around for a construction contractor that has experience in building car dealerships. Compare their previous projects, their prices, their design ideas, and the materials they use.

Choose your contractor and discuss your design ideas with him. Remember that your design should cater to your market, so don't forget to research the demographics and specifics of the area where you want to build. Finalize your design plans, and have the blueprints made.

Layout your construction schedule in a detailed timeline to make sure that you are on time and on budget. This will also help you make projections as to when to begin purchasing inventory. Once you and your contractor have finished the schedule and laid out the design, you can begin building.

Tips

  • Always use a licensed construction contractor with experience in your design to build a new dealership.

References

About the Author

Shannon Johnson has been a freelance writer since 2008, specializing in health and organic and green-living topics. She practiced law for five years before moving on to work in higher education. She writes about what she lives on a daily basis.

Photo Credits

  • car dealership 3 image by Alexey Stiop from Fotolia.com