If you are passionate about cars and have the knowledge, skills and means to open your own car dealership, it could be a dream come true; however, before embarking on a new venture, it is worth considering these key points.

Know your market

Your skills and knowledge will depend on what type of business you run and what service you offer to your customers; for example, are you going to specialise in new or used cars or both? You will also need a well-thought-out business plan and have all your start-up costs built into this to stay on track.


As with most customer-based businesses, the location of your forecourt is key to your success. Before going for a prime location, bear in mind that this will come with the highest rates and your staff will expect to be paid accordingly. Other considerations should include making sure there is enough customer parking and that traffic congestion is not a problem in your chosen area.


Research your competition. If there is already an established dealer nearby, you are going to have to offer something extra special to encourage its customers to deal with you instead. You will obviously need motor trade insurance, so get a motor trade insurance quote from Quote Me Today or a similar provider.

In a bid to cut down on the number of vehicles being driven without tax, a new campaign has been launched to clamp cars found to be parked or driven on the roads illegally.

Type of vehicles

Based on your location and client base, think about what type of vehicles you want to sell; for example, are you going to specialise in transit vans, family cars or luxury vehicles? You will also want to consider the after-sales service you offer and whether you will provide service and maintenance or have a business arrangement with a local garage.


In addition to securing your start-up and running costs, have a strategy for how you plan to sustain the business going forward and your vision for the future. This can always be updated, but it is good to have a goal to work towards and share with your staff. Finally, always check any specific legal requirements and don’t forget that you will need business insurance.