car dealership business plan south africa

Car Dealership Business Plan Template

Written by Dave Lavinsky

Car Dealership Business Plan

Over the past 20+ years, we have helped over 4,000 entrepreneurs create business plans to start and grow their car dealerships. On this page, we will first give you some background information with regards to the importance of business planning. We will then go through a car dealership business plan template step-by-step so you can create your plan today.

Download our Ultimate Car Dealership Business Plan Template here >

What Is a Car Dealership Business Plan?

A business plan provides a snapshot of your car dealership as it stands today, and lays out your growth plan for the next five years. It explains your business goals and your strategy for reaching them. It also includes market research to support your plans.

Why You Need a Business Plan for Your Car Dealership

If you’re looking to start a car dealership or grow your existing car dealership you need a business plan. A business plan will help you raise funding, if needed, and plan out the growth of your car dealership in order to improve your chances of success. Your car dealership business plan is a living document that should be updated annually as your company grows and changes.

Source of Funding for Car Dealership Businesses

With regards to funding, the main sources of funding for a car dealership are personal savings, bank loans and angel investors. With regards to bank loans, banks will want to review your business plan and gain confidence that you will be able to repay your loan and interest. To acquire this confidence, the loan officer will not only want to confirm that your financials are reasonable. But they will want to see a professional plan. Such a plan will give them the confidence that you can successfully and professionally operate a business.

The second most common form of funding for a car dealership is angel investors. Angel investors are wealthy individuals who will write you a check. They will either take equity in return for their funding, or, like a bank, they will give you a loan.

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Your business plan should include 10 sections as follows:

Executive Summary

Your executive summary provides an introduction to your business plan, but it is normally the last section you write because it provides a summary of each key section of your plan.

The goal of your Executive Summary is to quickly engage the reader. Explain to them the type of car dealership you are operating and the status; for example, are you a startup, do you have a car dealership that you would like to grow, or are you operating a chain of car dealerships.

Next, provide an overview of each of the subsequent sections of your plan. For example, give a brief overview of the car dealership industry. Discuss the type of car dealership you are operating. Detail your direct competitors. Give an overview of your target customers. Provide a snapshot of your marketing plan. Identify the key members of your team. And offer an overview of your financial plan.

Company Analysis

In your company analysis, you will detail the type of car dealership you are operating.

For example, you might operate one of the following types:

• New Car Dealers : this type of car dealership business typically sells both new and used passenger vehicles. Usually, this type of dealership also has a service department and also sells parts.
• Used Car Dealership : this type of car dealership sells used passenger vehicles, including cars, light trucks, sports utility vehicles (SUVs) and passenger vans.
• Online Car Dealership : this type of car dealership retails automobiles online to consumers and businesses and provides services to aid in the purchase of automobiles. Some players offer their customers trade-in, car financing and car selling services.

In addition to explaining the type of car dealership you operate, the Company Analysis section of your business plan needs to provide background on the business.

Include answers to question such as:

• When and why did you start the business?
• What milestones have you achieved to date? Milestones could include sales goals you’ve reached, new store openings, etc.
• Your legal structure. Are you incorporated as an S-Corp? An LLC? A sole proprietorship? Explain your legal structure here.

Industry Analysis

In your industry analysis, you need to provide an overview of the car dealership business.

While this may seem unnecessary, it serves multiple purposes.

First, researching the car dealership industry educates you. It helps you understand the market in which you are operating.

Secondly, market research can improve your strategy particularly if your research identifies market trends. For example, if there was a trend towards vehicles, it would be helpful to ensure your plan calls for plenty of options.

The third reason for market research is to prove to readers that you are an expert in your industry. By conducting the research and presenting it in your plan, you achieve just that.

The following questions should be answered in the industry analysis section of your car dealership business plan:

• How big is the car dealership business (in dollars)?
• Is the market declining or increasing?
• Who are the key competitors in the market?
• Who are the key suppliers in the market?
• What trends are affecting the industry?
• What is the industry’s growth forecast over the next 5 – 10 years?
• What is the relevant market size? That is, how big is the potential market for your car dealership. You can extrapolate such a figure by assessing the size of the market in the entire country and then applying that figure to your local population.

Customer Analysis

The customer analysis section of your car dealership business plan must detail the customers you serve and/or expect to serve.

The following are examples of customer segments: college students, soccer moms, baby boomers, etc.

As you can imagine, the customer segment(s) you choose will have a great impact on the type of car dealership you operate. Clearly baby boomers would want a different atmosphere, pricing and product options, and would respond to different marketing promotions than college students.

Try to break out your target customers in terms of their demographic and psychographic profiles. With regards to demographics, include a discussion of the ages, genders, locations and income levels of the customers you seek to serve. Because most car dealerships primarily serve customers living in their same city or town, such demographic information is easy to find on government websites.

Psychographic profiles explain the wants and needs of your target customers. The more you can understand and define these needs, the better you will do in attracting and retaining your customers.

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Competitive Analysis

Your competitive analysis should identify the indirect and direct competitors your business faces and then focus on the latter.

Direct competitors are other car dealerships.

Indirect competitors are other options that customers have to purchase from that aren’t direct competitors. This primarily includes private sellers. You need to mention such competition to show you understand that not everyone in the market for a car shops at a dealership.

With regards to direct competition, you want to detail the other car dealerships with which you compete. Most likely, your direct competitors will be car dealerships located very close to your location.

For each such competitor, provide an overview of their businesses and document their strengths and weaknesses. Unless you once worked at your competitors’ businesses, it will be impossible to know everything about them. But you should be able to find out key things about them such as:

• What types of customers do they serve?
• What types of automobiles do they offer?
• What is their pricing (premium, low, etc.)?
• What are they good at?
• What are their weaknesses?

With regards to the last two questions, think about your answers from the customers’ perspective. And don’t be afraid to stand outside your competitors’ locations and ask customers as they leave what they like most and least about them.

The final part of your competitive analysis section is to document your areas of competitive advantage. For example:

• Will you provide superior products and/or services?
• Will you provide cars that your competitors don’t offer?
• Will you make it easier or faster for customers to acquire your products?
• Will you provide better customer service?
• Will you offer better pricing?

Think about ways you will outperform your competition and document them in this section of your plan.

Marketing Plan

Traditionally, a marketing plan includes the four P’s: Product, Price, Place, and Promotion. For a car dealership business plan, your marketing plan should include the following:

Product : in the product section you should reiterate the type of car dealership that you documented in your Company Analysis. Then, detail the specific products you will be offering. For example, in addition to selling new cars, will you offer leasing options?

Price : Document the prices you will offer and how they compare to your competitors. Essentially in the product and price sub-sections of your marketing plan, you are presenting the inventory you will maintain and the price ranges.

Place : Place refers to the location of your car dealership. Document your location and mention how the location will impact your success. For example, is your car dealership located next to a high-traffic retail area, or on a main thoroughfare, etc. Discuss how your location might provide a steady stream of customers.

Promotions : the final part of your car dealership marketing plan is the promotions section. Here you will document how you will drive customers to your location(s). The following are some promotional methods you might consider:

• Making your car dealership extra appealing to attract passing customers
• Pay per click advertising
• Advertising in local papers and magazines
• Reaching out to local bloggers and websites
• Social media advertising
• Local radio advertising
• Banner ads at local venues

Building Trust

Building trust between a car dealer and its customers is vital to a successful sales strategy. This should be clear in the business plan, where funders look to see the feasibility of the company once it’s launched. Earning customer trust is important because of the bad reputation, deserved or not, for car salespeople to try to take advantage of customers and because of the high amount of stress which the purchase of a large item like a car causes for buyers.

Below are the best ways to build trust in your customers.

Referrals and Testimonials

Running a dealership with a heavy focus on satisfied customers referring other potential customers can create positive word-of-mouth between contacts who already know and trust each other. An additional element to this is securing testimonial statements (either written or videotaped) from happy customers. This requires having those happy customers in the first place, as customers can sense if the testimonials are canned and will mistrust even further.

Transparency

If auto dealerships were extremely clear about all pricing, fees, and costs of ownership up front, customers might change their opinion of these companies. However, too often there is a great focus on a low sticker price to attract customers who later on feel they’ve been lied to when all of the add-on charges are explained. Can your dealership change this industry practice and make transparency into a competitive advantage?

Taking Your Time

By taking the sales process at a rate that the customer is comfortable with, you recognize that it is a difficult step for customers to walk into the world of the dealer and play on his home turf, so to speak. They will be feeling defensive and a bit thrown off, so tell them that you will take the time to answer any questions they have and to make sure they understand and have considered their options before moving forward.

Operations Plan

While the earlier sections of your car sales business plan explained your goals, your operations plan describes how you will meet them. Your operations plan should have two distinct sections as follows.

Everyday short-term processes include all of the tasks involved in running your car dealership such as serving customers, completing necessary paperwork, keeping the dealership clean, etc.

Long-term goals are the milestones you hope to achieve. These could include the dates when you expect to serve your 1,000th customer, or when you hope to reach $X in sales. It could also be when you expect to hire your Xth employee or launch a new location.

Management Team

To demonstrate your car dealership’s ability to succeed as a business, a strong management team is essential. Highlight your key players’ backgrounds, emphasizing those skills and experiences that prove their ability to grow a company.

Ideally you and/or your team members have direct experience in the car dealership business. If so, highlight this experience and expertise. But also highlight any experience that you think will help your business succeed.

If your team is lacking, consider assembling an advisory board. An advisory board would include 2 to 8 individuals who would act like mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience in car dealerships and/or successfully running retail and small businesses.

Financial Plan

Your financial plan should include your 5-year financial statement broken out both monthly or quarterly for the first year and then annually. Your financial statements include your income statement, balance sheet and cash flow statements.

Income Statement : an income statement is more commonly called a Profit and Loss statement or P&L. It shows your revenues and then subtracts your costs to show whether you turned a profit or not.

In developing your income statement, you need to devise assumptions. For example, will you serve 20 customers per week or 75? And will sales grow by 2% or 10% per year? As you can imagine, your choice of assumptions will greatly impact the financial forecasts for your business. As much as possible, conduct research to try to root your assumptions in reality.

Balance Sheets : While balance sheets include much information, to simplify them to the key items you need to know about, balance sheets show your assets and liabilities. For instance, if you spend $100,000 on building out your car dealership, that will not give you immediate profits. Rather it is an asset that will hopefully help you generate profits for years to come. Likewise, if a bank writes you a check for $100.000, you don’t need to pay it back immediately. Rather, that is a liability you will pay back over time.

Cash Flow Statement : Your cash flow statement will help determine how much money you need to start or grow your business, and make sure you never run out of money. What most entrepreneurs and business owners don’t realize is that you can turn a profit but run out of money and go bankrupt. For example, let’s say a company approached you with a $1,000,000 fleet order, that would cost you $500,000 to fulfill. Well, in most cases, you would have to pay that $500,000 now for inventory, transportation, employee salaries, etc. But let’s say the company didn’t pay you for 180 days. During that 180 day period, you could run out of money.

In developing your Income Statement and Balance Sheets, be sure to include several of the key costs needed in starting or growing a car dealership:

• Location build-out including design fees, construction, etc.
• Cost of equipment like computer hardware and software, etc.
• Cost of maintaining an adequate amount of supplies
• Payroll or salaries paid to staff
• Business insurance
• Taxes and permits
• Legal expenses

Attach your full financial projections in the appendix of your plan along with any supporting documents that make your plan more compelling. For example, you might include your store design blueprint or location lease.

Car Dealership Business Plan Summary

Putting together a business plan for your car dealership is a worthwhile endeavor. If you follow the template above, by the time you are done, you will truly be an expert. You will really understand the car dealership business, your competition and your customers. You will have developed a marketing plan and will really understand what it takes to launch and grow a successful car dealership business.

Download Our Car Dealership Business Plan PDF

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

Car Dealership Business Plan FAQs

What is the easiest way to complete my car dealership business plan.

Where Can I Download a Car Dealership Business Plan PDF?

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

Don’t you wish there was a faster, easier way to finish your Car Dealership business plan?

OR, Let Us Develop Your Plan For You

Since 1999, Growthink has developed business plans for thousands of companies who have gone on to achieve tremendous success.   Click here to see how Growthink’s business plan advisors can give you a winning business plan.

Other Helpful Automotive Business Plan Articles & Templates

STARTING A CAR DEALERSHIP?

Want to be your own boss and spend time around products that excite you? Starting a car dealership may be right for you!

Here is some advise:

1. do research.

Doing some market research is essential. The first step is determining the demand for your particular service, which is providing used or second-hand cars for sale to the public.

You need to find out how many cars have been sold recently in the vicinity of your dealership, what colours were the cars, what make, were they new or pre-owned?

2. Write a business plan

A business plan is needed to show any prospective franchisees and franchisors or for explaining to your lender exactly what you want to do with your car dealership business.

Include costs, lease agreements and any other important documentation.

3. What permissions and documents are needed?

Finding out what documents you need to open a business in South Africa is essential. In South Africa, you need a dealer’s license to allow you to legally buy and sell cars to the public.

4. Stock / Inventory?

Do you have cars to sell?….

Investigate inventory opportunities, such as going to bank auctions to find cars that you can bid on and then resell at a fair price. Remember to stick to your budget!

5. A marketing budget!

Once plan is drawn up and inventory sorted, it’s time to market your business.

Invest your money in a company that can help you to reach your audience.

6. Business Insurance

Here at VUM we are ready to insure your business against unforeseen risks. We specialise in giving real, honest, transparent cover to small and emerging businesses. We understand your business and are ready to give you the cover you need.

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How to start a car dealership in South Africa

• March 9, 2021

Almost everyone uses a car for their daily travel, those who don’t; aspire to buy them at some stage. This is a step-by-step guide on how to start a car dealership in South Africa.

A lot of people deem cars to be nearly as valuable as houses, cars are super valuable. This means that the future of this industry is great as there will always be demanded; provided you are in the right location.

This business has very high barriers to entry, the costs can be prohibitive for many budding entrepreneurs. This has both advantages and disadvantages, the main advantage being that you will likely face very little competition.

Choose the right location

The right location can make or break your business; the right location is where there is demand. Demand plays a very important role in where you choose to locate your car dealership. This means that you have to do a lot of market research to determine whether there is demand or not.

Your market research should start by studying the demographics of your location and the actual demand for cars. Not forgetting the competition that may already exist, most people don’t set up car dealerships in very low-income neighbourhoods. Assess the demand for the types of cars you want to sell, are you planning to sell new or used cars and a specific brand? All this will help you determine the right location.

Decide on what type of dealership you are going to open

You can open a car dealership that sells all car brands or you can open a franchise. I would not encourage you to open a franchise, the process to being approved is very rigorous and yet you have very little freedom with what you can do with the business. The main benefit of opening a franchise is that you will have credibility in the marketplace. This credibility might help to generate more sales.

You should also decide on whether you are going to sell new or used cars or both. Selling both new and used cars can be very expensive, it will require a lot of money in start-up costs. Second hand cars are easier to sell and will make you a lot more money in the long run because they will need to be repaired a lot more. Which might kickstart your car repair/service business.

Opening a repair/service business is a great way to get business continuously from people who initially bought a car from your dealership. Profit margins on the actual sale of the vehicle might be low.

Register your business

You should register your business with the CIPC, it will be registered as a private company and will be responsible for its own liabilities amongst other benefits. In South Africa, you need a dealer’s license, which allows you to buy and sell cars. You will also need to have an authorised financial services provider if you want to provide in-house financing advice. This is something that you should be looking to do as it is a good source of additional revenue.

Buying second-hand cars

The best place to find second hand cars is an auction, you will get to see a lot of different cars that are priced to sell. You will also be able to check out the condition of these cars, this will make it much easier for you to choose the best ones for your dealership at a decent price. Some of these cars might need repairs, you can do repairs and add the cost as part of the selling price.

Occasionally, there are people who will walk up straight to your dealership and tell you that they are selling their car. These people are usually desperate to get rid of it, which makes it easier to negotiate a fair price for the car. A lot of car owners value their car more than it’s actually worth.

Marketing your car dealership

Marketing cars is not as difficult as marketing other products, with less competition and a high demand for cars; you will have it easier than most businesses. The best way to go about marketing your car dealership is by hiring sales agents and paying them a commission on sales. This will reduce your overhead costs while simultaneously increasing the reach of your business and getting you more customers.

See also: How to start a business in South Africa.co.za

This was a guide on how to start a car dealership business in South Africa. Do you have any thoughts or questions? Comment below.

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This post has 4 comments.

Which law states that ” In South Africa, you need a dealer’s license, which allows you to buy and sell cars.”? With a licence there are certain privileges but I cannot find any law that says to buy and sell cars you need a dealers licence.

Hi Johan https://www.gov.za/services/transport/apply-motor-trade-number-and-permit please read through that.

Do you need to study for it.If so,what/which course does one have to apply for?

BM Seoposengwe

How does one get to apply for a dealer’s license in RSA? I would like to start trading with vehicles and possibly open a dealership.

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The road ahead for car dealership business finance

Unlocking opportunities for car dealerships .

Right now, seismic challenges and changes are happening  inside SA’s car dealerships .  South Africa’s automotive and transport sectors are the primary engine behind human mobility in SA.  It’s an enabling sector, driving employment and keeping South Africans moving. However, they are taking all the bumps in the road head-on right now. 

In a market anticipated to shift in favour of buyers, dealerships offering more affordable brands and models will likely capture the bulk of sales in 2024. Amidst the threat of global recession and rising fuel, transport, and living costs, individuals and families are looking to downgrade to smaller, more fuel-efficient vehicles. With escalating public transport costs, we may see a spate of first-time buyers entering the vehicle market.

Though sales of electric vehicles (EVs) will continue to rise in SA, hybrid vehicles are predicted to account for the lion’s share of sales in the first half of the decade, with full EVs expected to follow suit towards 2030, especially if our current power woes are successfully addressed. Still, the big pressure lives in floor planning and the financing of stock. 

There is, however, light ahead. S A’s car manufacturers stand to grow their business streams in 2024 by tapping into emergent shifts and trends in commercial, industrial, and technological spheres and acting at the right time. And…car dealerships can strive to retain high-quality service commitments, consumer value, and choice.

Opportunities not to miss out on:

• Vehicles are so expensive!  Stocking up and cleaning stock costs a lot! Take advantage of financing for your dealership to ensure your cash is constantly flowing when you need to order.
•  Invest in EVs. If you’re not already there, it’s time to consider this move. More and more consumers are looking to save on fuel costs and support our changing environment.  Support your customers’ needs and invest in hybrid or EV stock options they will need now and in the future.
• Manage your floor plan inventory, equipment, diagnostic tools, and dealer management systems easily and flexibly.  This will feel impossible without capital to support your needs, so it may serve you and your business to engage with a revolving capital facility  to support your needs.
• Create offers your market can’t refuse.  In times of need, consumers will be looking for a solution. A reliable line of business capital will help you manage unexpected costs and stay ahead of shifting consumer trends.
• Getting organised with Subscription-based offerings , or MaaS will be a growing trend. If consumer affordability can be mitigated, more cars will be sold. 2024 could be the year this becomes a reality for car dealerships.
• Upgrade your dealership system to work for you! Tech is pricey, but time is money.  Having a credit facility, you can tap into when you need it can help you navigate the expense and inject your business positively.

Despite many opportunities, the automotive industry will face considerable hurdles in 2024 – the ongoing energy crisis, supply chain disruptions, and less money in people’s pockets – to name but a few. Car dealerships will need business capital to successfully navigate these obstacles and ensure growth and success in 2024 . 

Financing with Lula 

Lula’s business capital solutions are quick, convenient, and fully online paperless applications with flexible repayment terms, full transparency, and no hidden fees. With Lula, you can easily access up to R5M of working capital without the need for any collateral.

Lula’s online application process is hassle-free, and you can get approval within hours. After approval, your funds are deposited directly into your bank account, and with a Lula business bank account , it can be done in as little as 2 hours.

Lula’s repayment terms are flexible, so you can choose the repayment term that best suits your cash flow . And with full transparency, you can be assured that there are no hidden fees or charges.

Lula provides a reliable and streamlined process for car dealerships to access the capital they need to grow their business.

With a vision to assist SA’s entrepreneurs in growing our economy and providing jobs for our people, Lula is a trusted business credit partner, supporting car dealerships with the flexible cash injections they need to innovate and take advantage of opportunities. Find out more here. 

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How to Start a Car Dealership in South Africa

A vehicle dealership may sound like the perfect business opportunity for those who enjoy automobiles. As a business owner, you’ll be able to spend your time working with things that excite you, such as used Nissan Qashai automobiles, or luxury pre-owned vehicles, or used cars for business owners. Nevertheless, you may be stumped as to where to begin when it comes to setting up a vehicle dealership.

There are steps to take if you want to start a franchise. If you want to apply for the right to buy and sell automobiles, you must have all the necessary paperwork in place, and you must know the service history of every vehicle you have on your lot for sale. Are you thinking about starting your own business or joining a franchise? 

Do your research

Prior to deciding where to open a car franchise or business, it is critical to conduct some market research. The first stage is to figure out how much demand there is for your particular service, which is to sell people secondhand cars.

Assuming that most individuals in your town are willing to go up to 16 kilometers to buy a car, look at how many automobiles have been sold recently in your area. This could show you that up to 100,000 vehicles were sold in your area in a single year.

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You’ll have a viable company plan if you can meet this demand. Find out which consumers choose used automobiles over pre-owned vehicles to assist you in your decision-making process. 

Have a business plan

It’s time to write a business strategy when you’ve done your study. As a prospective franchisee or franchisor, you need a business plan to explain your dealership strategy to investors and lenders. It should contain all of your initial and ongoing costs, as well as your working capital. 

The cars themselves will be the most important part of your business plan. As an example, are you going to be selling new, used, or pre-owned automobiles? Will you be specializing in a single brand or will you be carrying several?

Don’t forget about other business expenses like salaries, leases, and other overhead when answering these questions. Your business plan should also include details on how you intend to pay back any loans or financing agreements you may have. 

Possess the necessary paperwork

Before moving on to the next phase of your business, you should do some research into what documents you will need in order to do so. With this, you can legally buy and sell cars to the general public in South Africa; this also includes a dealer’s license. All of your business activities will be covered by the Consumer Rights and Protection Act. 

You will also need to have papers demonstrating that you are leasing or own the property you will be operating from. You could look into a surety bond, which would safeguard you from any damages to the property.

Speak to your lender about the other paperwork that you need for a franchise agreement, as they can be slightly different from what is necessary for a conventional dealership. Also be cautious to supply the necessary documentation to individuals you are acquiring second hand cars from. 

Consider inventory possibilities

Having automobiles to sell is the most critical component of owning a car business. There are a few options here: you can go to bank auctions and bid on automobiles that you can afterwards resell, or you can offer to buy used cars from people who are selling them and then resell them after they’ve had some much needed repairs and sprucing up. 

When purchasing merchandise, keep in mind that going over budget can quickly add up in terms of both time and money. This is the time to go to your company strategy, which will show you just how much you need to spend on inventory in order to stay within this budget. Remember that if you want to appeal to folks with a more refined palate, you may have to pay more for a premium automobile.

Don’t forget about the importance of marketing

Start marketing your business once you’ve done your research, drawn up a business plan, and found all of your inventory. You should put your money into a company that can assist you in reaching your target audience through the use of both traditional and modern digital marketing strategies.

Before you open your doors, make sure you have all the necessary paperwork together to ensure that everything is legal and compliant. Auto sales are expected to soar in the near future, and you will be able to assist customers in finding the vehicles of their dreams.

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• Sample Business Plans
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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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Starting a Car Dealership in South Africa: Costs and Considerations

For those with previous auto industry experience or a love of vehicles, opening a car dealership in South Africa might be a rewarding business option. However, before beginning this project, it is crucial to be aware of the expenses and factors involved.

Starting a vehicle dealership can be very expensive depending on the location, size, and inventory, among other things. Experts in the field estimate that R500,000 is the very minimum needed to launch a small used-car shop in South Africa. Rent, insurance, licenses, marketing, and initial inventory costs are included in this.

While starting a larger dealership with a greater selection of vehicles may require an investment of more than R5 million. This covers the price of leasing or buying a premises, paying employees, and buying more stock.

Starting a vehicle dealership necessitates a financial investment as well as various legal and regulatory issues. The South African Motor Industry Ombudsman (MIOSA) will provide you a dealer’s license, and you’ll also need to abide by a number of laws and rules on advertising, financing, and sales.

Buying an old car, repairing it, and then reselling it for a profit is known as “flipping a car.” Although this can be a lucrative side gig or business, it necessitates a sizable degree of auto industry expertise and experience.

To start flipping a car, look for a model that is in high demand but could use some modifications or repairs. This can be accomplished through internet listings, public sales, or auctions. Once you’ve paid for the vehicle, you’ll need to perform any improvements or repairs required to raise its value.

You can list the car online, on social media, or even in your neighborhood’s classified ads to sell it. The profit margin of a car that has been flipped might change based on the initial purchase price, the cost of repairs, and the ultimate selling price. However, industry insiders argue that for seasoned flippers, a profit margin of 10% to 20% is feasible.

A car firm is far more difficult and expensive to start than a dealership or a car lot. It necessitates a substantial investment in design, production, marketing, and research & development.

However, starting a car company may be a fulfilling and successful endeavor for people with a passion for cars and a desire to innovate in the auto sector. Conducting market research, obtaining money, assembling a team of professionals, designing and producing the car, and marketing and selling the product are a few important phases in launching a car business.

Depending on the brand and model, region, and demand, the profit margin for cars might vary considerably. Industry analysts estimate that the profit margin on new automobiles is often between 6 and 8%, whereas the profit margin on secondhand cars is typically between 10 and 20%. However, it’s crucial to remember that a number of outside factors, like prevailing economic conditions, rivalry, and consumer behavior, can have an impact on the profit margin on automobiles. As a result, it’s critical for automakers and dealers to be knowledgeable and flexible in response to market developments.

To sum up, opening a vehicle dealership in South Africa can be a lucrative business venture, but it demands a large investment in terms of money and legal compliance. Car flipping can be a lucrative side business, but it takes expertise in the auto sector. A hard and expensive endeavor, starting an automobile company can be lucrative for people with a love for innovation. Finally, a variety of variables and environmental conditions can have a significant impact on the profit margin for autos.

In order to open a car dealership in South Africa, you must adhere to a set of rules and fulfill a number of conditions. Typically, these involve acquiring a dealer license from the Motor Industry Regulatory Authority (MIRA), registering your firm with the Companies and Intellectual Property Commission (CIPC), receiving a tax clearance certificate, and finding an appropriate location for your dealership. You should also think about the accompanying expenditures, such as those for hiring staff, marketing, and running your dealership, as well as those for buying and selling cars. To make sure you are fully ready for the process and satisfy all the legal and regulatory criteria, it is advised that you speak with professionals like attorneys, accountants, and business advisers.

Because it requires a legitimate dealer’s license and a physical site registered with the Motor Industry Regulatory Authority (MIOSA), selling vehicles from home is illegal in South Africa. Because of this, it’s crucial to think about the licenses and permits needed to run a vehicle dealership legally.

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How To Start A Car Dealership In South Africa

What is Car Dealership?

A car dealership, or vehicle local distribution, is a business that sells new or used cars at the retail level, based on a dealership contract with an automaker or its sales subsidiary. It can also carry a variety of Certified Pre-Owned vehicles. It employs automobile salespeople to sell their automotive vehicles.

Choose the right location

The right location can make or break your business; the right location is where there is demand. Demand plays a very important role in where you choose to locate your car dealership. This means that you have to do a lot of market research to determine whether there is demand or not.

Your market research should start by studying the demographics of your location and the actual demand for cars. Not forgetting the competition that may already exist, most people don’t set up car dealerships in very low-income neighbourhoods. Assess the demand for the types of cars you want to sell, are you planning to sell new or used cars and a specific brand? All this will help you determine the right location.

Decide on what type of dealership you are going to open

You can open a car dealership that sells all car brands or you can open a franchise. I would not encourage you to open a franchise, the process to being approved is very rigorous and yet you have very little freedom with what you can do with the business. The main benefit of opening a franchise is that you will have credibility in the marketplace. This credibility might help to generate more sales.

You should also decide on whether you are going to sell new or used cars or both. Selling both new and used cars can be very expensive, it will require a lot of money in start-up costs. Second hand cars are easier to sell and will make you a lot more money in the long run because they will need to be repaired a lot more. Which might kickstart your car repair/service business.

Opening a repair/service business is a great way to get business continuously from people who initially bought a car from your dealership. Profit margins on the actual sale of the vehicle might be low.

Register your business

You should register your business with the CIPC, it will be registered as a private company and will be responsible for its own liabilities amongst other benefits. In South Africa, you need a dealer’s license, which allows you to buy and sell cars. You will also need to have an authorised financial services provider if you want to provide in-house financing advice. This is something that you should be looking to do as it is a good source of additional revenue.

Buying second-hand cars

The best place to find second hand cars is an auction, you will get to see a lot of different cars that are priced to sell. You will also be able to check out the condition of these cars, this will make it much easier for you to choose the best ones for your dealership at a decent price. Some of these cars might need repairs, you can do repairs and add the cost as part of the selling price.

Occasionally, there are people who will walk up straight to your dealership and tell you that they are selling their car. These people are usually desperate to get rid of it, which makes it easier to negotiate a fair price for the car. A lot of car owners value their car more than it’s actually worth.

Marketing your car dealership

Marketing cars is not as difficult as marketing other products, with less competition and a high demand for cars; you will have it easier than most businesses. The best way to go about marketing your car dealership is by hiring sales agents and paying them a commission on sales. This will reduce your overhead costs while simultaneously increasing the reach of your business and getting you more customers.

Frequently Asked Questions (FAQs)

How much does it cost to start a car company in South Africa?

Establishment costs include: Initial joining fee – R200,000 (ex VAT) per dealership. Dealership conversion costs – R800,000 to R1,050,000. Dealership launch – Up to R50,000.

How many cars can I sell in a year in SA?

If you buy, sell, or offer for sale four or more vehicles in a 12 month period, you are considered a second-hand vehicle dealer. You must be licensed and follow the legal requirements for this type of business.

How many car dealerships are in South Africa?

According to the National Automobile . Dealers’ Association (Nada), there are about  1 600  franchise vehicle dealers in South Africa, employing 60 000 people directly, and nearly one million in the automotive value chain with the multiplier effect

How much do car dealership owners make in South Africa?

How much does a Dealer principal make in South Africa? The average dealer principal salary in South Africa is R 630 000 per year or R 323 per hour. Entry-level positions start at R 505 500 per year, while most experienced workers make up to R 1 047 000 per year.

Can you build your own car in South Africa?

South Africa has the capacity to build a car from scratch. Indeed, it has already built an electric car.

How do car dealership owners make money?

In addition to profit generated from financing or leasing a car, dealers make money from selling different insurance packages or warranties: extended warranties, tire and wheel protection, so on and so forth. With each sale of an additional item, the dealer is making some profit.

Do you need a roadworthy to sell a car in SA?

Unlike other states in Australia there is no requirement in SA for a seller to have a roadworthy inspection done on the used car they are selling.

Do you need RWC in SA?

A roadworthy inspection is required if the vehicle: has been fitted with a non-standard engine – phone vehicle standards on 1300 882 248 to ask about your vehicle or email [email protected].

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How much it costs to open a second-hand car dealership in South Africa

 If you would like to open a second-hand car franchise with a reputable brand, you will need at least R4 million in capital.

This is according to InspectaCar, which provides franchise opportunities to interested parties.

InspectaCar, which is certified by WesBank, said there are many advantages to taking part in a franchise arrangement.

This includes becoming part of a dealership network that’s “trusted and respected” by South African car buyers.

Dealership owners will also get access to financial support, administrative systems, and marketing drives run by InspectaCar.

Cost breakdown

A breakdown of the costs to open an InspectaCar franchise, as listed on the company’s website, is detailed below.

Establishment costs include:

• Initial joining fee – R200,000 (ex VAT) per dealership
• Dealership conversion costs – R800,000 to R1,050,000
• Dealership launch – Up to R50,000
• Website – From R10,000
• Software licences, telephone system/PABX – Variable
• Promotional material – R17,000 to R45,000
• Stationery – Variable
• Vehicle stock recommendation – At least R3,000,000
• Training costs – Estimated at R30,000
• Marketing contribution – R300 (ex VAT) per vehicle sold
• Uniforms and marketing collateral – R9,000 per month

Other ongoing costs include:

• Franchise fee – R1,045.75 (ex VAT) per vehicle sold
• Website – Up to R6,800 per month

The image below details the costs and application process for interested parties. Click on the image to enlarge it.

Used car purchases

The second-hand car market is performing well in South Africa, according to InspectaCar, which stated that more consumers are choosing to purchase pre-owned vehicles rather than new cars in 2021.

As a result, the company said it has seen an increase in interest in used-car franchises.

“While demand is currently higher than supply, we are hoping that this will improve in the coming months, turning this segment of the market around into a flourishing one for used car buyers,” said the company.

“In the face of this challenging operating environment, it is heartening to see a renewed interest in pre-owned franchise ownership.”

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Dealership Owner Opportunities

All prospective Dealership owners are required to include the following information as part of their application submissions:

• A Ford Application Form.*
• A signed business plan completed on Ford’s template* and a budget for a full 12-month period.
• A list of tangible securities (with relevant detail) available to Ford Credit for your vehicle floorplan facilities.
• A copy of Memorandum of Articles of Association / Association Agreement / Partnership Agreement
• Copy of Certificate of Incorporation.
• Company’s B-BBEE certificate and plans to maintain and improve compliance levels.
• The current bank overdraft limit and what security has been provided for the facility together with a letter from the bank confirming the overdraft.
• Signed annual statements and balance sheets of the applicant/s for the past 2 years.
• Current interim financial statements and balance sheets.
• Current signed personal statements of Shareholders / Members / Partners / Guarantors.
• Photographs, location map and layout plan of the prospective Dealership.
• Details of all beneficiaries / owners up to natural person.
• Shareholding structure including an organogram with percentages of shareholding.
• Company Structure indicating shareholding and their shares in the company.

Ford application forms and templates will be supplied to shortlisted candidates during the tender process.

There are currently no open points available for tender. Please visit again to view future opportunities.

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Start a Business in the Automotive Franchise Sector

Updated on 12 November 2018

Automotive franchises offer valuable car-related products, repair services and valeting services.

Typically previous experience in the motor servicing is encouraged however this is not a requirement, a franchise like Car Service City  have said that they are looking for franchisees that have the personal attributes to become a successful business person, rather than someone with previous motor servicing experience. “Our current franchisees come from varied backgrounds, which include chartered accountants, MBA’s, former Marketing and Financial Directors,” it said on their website.

If you are considering being part of the big brands in franchising, here’s what you should consider:

Franchise options

The Franchise Factor research report on the automotive after market covers a number of sectors, which includes:

• body repairs and services;
• glass repairs and services;
• maintenance and repairs;
• wash and valet;
• specialised fitment;
• tyre fitment and services;
• parts supply;
• vehicle tracking services, as well as battery repair and replacement.

Industry insights

The franchising analyst Bendeta Gordon told BusinessLive said the increase was prompted by a tough economy that had changed new-vehicle purchasing patterns. As vehicles were kept for longer, the need for maintenance and other after-market services had grown.

Gordon added: “The bottom line is that franchising is a lower-risk opportunity directed at offering black entrepreneurs entry into the mainstream of economic activity by making small-and medium-sized franchised businesses available to them.”

The Manufacturing Indaba said that the automotive sector currently contributes 33% to manufacturing GDP and about 6% to overall GDP. It produces approximately 600,000 vehicles per year, supporting 113,000 jobs.

Gordon said the majority of the 79 franchised systems in the 2017 report – 28 – have ten or fewer stores, while only two have more than 251 stores. The estimated turnover of the the franchised systems are R32-billion in 2017.

She also said that while there were no firm figures to confirm,  it was “likely” that these operators also took in about 30% of the sector’s R32bn turnover in 2017.

Setup costs

It depends on which franchise you are planning to buy in. For example, Car Service City said that the price of a franchise (with them) largely depends on the area one is planning to open the branch, as the prices range from R550,000 to R1,200,000.

On the other hand, according to the SA Franchise Brands , Midas asks for a conversion fee of R 50,000, while the franchise Tyres & More ‘s requirements include access to funding, a total investment of R4-mil. of which R2.5-mil. is for set up costs and R1,5-mil for working capital.

Monthly fees would include your business insurance for the premises and things like the equipment.

According to the Franchise Association of South Africa (Fasa), most franchisors will insist that you fund between 30 –50% of the complete investment from your own resources. Fasa warns that if repayments are big, it would place strain on your new business’ cash flow.

Basic equipment

The Entrepreneur Mag reported that if you are looking to acquire equipment, for example, for wheel alignment, you can:

• Contact wheel alignment outlets
• Go to auction sales (find out about this in newspapers)
• Check trade magazines for adverts on second-hand equipment
• Check websites like Vottle and the web directory AutoStart

Things you have to apply for include a business bank account and SARS Tax.

Laurette Pienaar, Nedbank’s national franchise manager, said to Moneyweb that similar to the franchise agreement, franchisees are encouraged to seek legal advice prior to entering into a lease agreement and supplier agreements.

Documentation

• Disclosure profile document: It gives you the background of the franchise. “You’ll also get a list of franchisees who part of the franchise and you can call them up,” explained Riaan Fouche, the Chief Operations Officer at FNB Business . With this document you can do the necessary research about the franchise.
• A non disclosure document: This will be forwarded to all interested parties to ensure confidentiality.
• Franchise agreement: This document tells you what you are getting yourself into.
• Approval letter from the franchisor: It will be needed for when you apply for a loan at the bank.
• Personal details (for the bank loan application): This includes your personal details like the statement of assets and liabilities (or balance sheets), a business plan from their side, curriculum vitae of the individual (short), a comprehensive set up cost, and a cash flow projection for at least three years. The franchisor assists the franchisee with all of this.

Support and training available

• Depending on what franchising you’re going into, the training is provided by the franchisor and it can take from several weeks to a couple of months.
• The Seda Automotive Technology Centre (SATeC), which is supported by the Small Enterprise Development Agency (Seda), functions as a business incubator for the automotive sector. It offers entrepreneurs in the sector an environment which nurtures the development of their business to the point of sustainability.

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Car Dealership Business Plan Template

Document description.

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

Sample of our car dealership business plan template:

[INSERT IMAGE/LOGO] [YOUR COMPANY NAME] [YOUR ADDRESS] [YOUR CITY], [YOUR STATE/PROVINCE] [YOUR ZIP/POSTAL CODE] Tel. [YOUR PHONE NUMBER] Fax: [YOUR FAX NUMBER] Email: [YOUR [email protected]] BUSINESS PLAN

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Used Auto Sales Business Plan

Start your own used auto sales business plan

Integrity Auto Sales

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

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

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

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

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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FLOOR PLAN FINANCE – CAR DEALERS

Quick funds for used car dealers. Get R 150 000 in 24 hours. Larger amounts take a few days.

Not what you were looking for? Apply for Rent To Own Vehicle Finance here

Get money in your account in 24 hours and accelerate your used-car dealership success!

TAILORED FLOOR-PLAN FINANCE

Ever wondered how to get funding for your used car dealership? Ever missed out on getting new stock at great deal, because of cash flow? Do you have buyers but not enough stock ?

Ask yourself this…“What is the cost of NOT applying for a car dealership cash advance?” How many deals could you lose, if you do not have stock ?

Get a floor plan loan and get back in the driver’s seat of your business!

If you need quick access to cash NOW, for your used-car dealership, our dealer floor plan  providers offer dealer financing at the best rates possible. We can help you!

Independent Auto Dealer Financing, is the solution you’ve been searching for.  Car dealer floor plan financing has never been easier. We have finance for car traders,  tailored to your unique used car business.

Are you ready to stock your showroom with the best cars money can buy? We facilitate the  most innovative car dealership funding solution.

ARE YOU LOOKING FOR PERSONAL VEHICLE FINANCE?

PLEASE NOTE THE ABOVE PRODUCT IS FOR USED CAR DEALERS ONLY, NOT VEHICLE FINANCE. IF YOU REQUIRE PERSONAL VEHICLE FINANCE, PLEASE REFER TO RENT-TO-OWN CARS HERE .

What is wholesale finance for car dealers?

Wholesale finance is a flexible finance solution, designed to assist care dealers in expanding their businesses by acquiring new stock to sell. This car dealer finance gives you greater flexibility and power over managing your floorplan inventory, equipment, diagnostic tools and dealer management systems.

Benefits of car dealer finance:

Increase stock levels – need to buy more second-hand cars NOW? Our asset lending dealer gives you rapid access to cash to buy more vehicles. Lines of credit to buy cars in South Africa has never been easier.

Flexible loan terms – you have 90 days to settle your loan and cann apply more than once.

Optimise your stock levels and take your used-car dealership to new heights!

As experts in used-car dealership funding facilitation, we understand your business. We understand that money = stock = sales = profit. This is why we strive to make the floor plan finance application process as simple as possible. We offer quick and easy solutions.

Apply for your dealer floor plan financing program now!

We place buying power, back your hands.

Traditional financing for used car dealers restricts the car trading business to only using the funds for the vehicle being acquired. We are breaking the ‘glass ceiling’ – our funding allows your dealership to spend the funds as they wish, on condition the loan is settled within 90 days, as per the loan terms.

Being one of the most progressive and trusted companies in South Africa, our credit provider knows what it takes to grow your business, to the next level of success.

Apply Now for your line of credit!

Dealership Floor Plan Financing Works Like This:

• Minimum period of 14 days
• Minimum loan of R100 000
• Competitive interest rates, charged daily
• Max vehicle age of 10 years
• Unlock max value against existing assets
• Use cash to increase stock

Requirements – up to R 150 000 funding:

• Directors ID
• BRNC certificate
• Bank Letter
• Signed 90 day bridging agreement

THE BELOW FORM ONLY APPLIES TO FLOOR PLAN FINANCE. PLEASE ONLY SUBMIT THE FORM ONCE AND CHECK YOUR INBOX FOR A CONFIRMATION EMAIL.

FREQUENTLY ASKED QUESTIONS

How soon can i get my money.

Your auto dealer floor plan advance is paid into your account in as little as 24 hours giving  you increased buying power overnight!

Minimum Amount?

The minimum funding amount is R100 000 and almost no upper limits.

Maximum Amount?

Almost no upper limits.

How To Apply?

Fill in the contact form below to enquire now.

Can I get more than R 100 000?

Yes, if you meet the lending criteria.

May I Re-Apply?

Yes, if your account has been conducted in a regular manner.

If I have a poor credit profile, will I be approved?

Discuss this with the consultant that contacts you. Each application is dealt with on its own merits.

What Are The Costs?

A very competitive rate is offered. You will be provided with a term sheet outlining the fees,  before you sign any agreement.

Let Us Help Your Used-Car Dealership. Free Up Cash-Flow, TODAY!

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