Are you fascinated by the car industry and want to learn how to become a car dealer? If so, this article is perfect for you. I’ll show you all the steps on how you can study, become a sponsor and figure out what license is needed to start dealing cars. But before we move on, let’s discuss something important.
how to become a car dealer
Learn the Business
Before opening your own dealership, you should become familiar with the industry by selling cars, managing a dealership, or working for an auto manufacturer. There are even colleges that have curriculums that teach students how to own and manage a dealership.
Obtain Financing
Whether you are starting a dealership from scratch or buying an existing one, start up costs are usually in the millions. The first place to begin is with your local bank or credit union for a loan to cover expenses for six to 12 month’s of operation. And that’s not just for a building, the vehicles, and the service department. You’ll also need furniture, computers, telephone lines, fax machines, printers, filing cabinets, cubicles, plants, signage, and decorations.
Develop a Business Plan
Once you’ve come to terms with investing every greenback you can get your hands on, it would be wise to flesh out a solid business plan. This will be beneficial if you need to apply for any type of financing, and will prove to be a helpful, guiding tool as you move forward.
Become Certified
Next, attend a state-mandated dealer certification course, either online or in a classroom setting. Plan on dedicating about six to eight hours for lectures, which are followed by an exam. With a passing grade, you’re certified.
Find a Spot to Set Up Shop
Cars and trucks are a physical product, and you will need an office, showroom, and lot. The first task will be to find a suitable location. You’ll also need to decide on a name for the store. After that is done, you will need to determine if you are going to sell used or new cars. Should you choose to sell new cars, you’ll need to enter into a franchise agreement with a manufacturer—this usually has to be bought. Automakers will likely have their own requirements that they expect their dealers to meet, such as having a certain exterior design and minimum distance from the nearest existing franchise.
In addition to price, consider your site’s proximity to other dealerships (and how that may benefit your business), access from the street (problematic intersections or one-ways might make it difficult for customers to pull into your lot), and the appearance and condition of surrounding storefronts and neighborhoods (car shoppers’ first choice won’t be a dealership in a rough part of town).
