Opening up a New Car Dealership? Two Challenges You May Find and How to Deal with Them

8 November 2016
 Categories: , Blog


Opening a new business is an exciting time but also can be a very stressful time. If you are planning to open a new car dealership soon, you may have some challenges ahead of you. Below are two of these challenges and how you can deal with them.


One of the most important things you can do as a startup dealership is marketing.  Doing marketing the right way will help you find buyers and then prompt them to purchase a car from you. You could hire a business to do all your marketing for you, but there are ways you can do it yourself.

Placing an advertisement in your local newspapers and trade magazines will get your name out there in front of potential buyers. Email marketing can also work well to grow your car dealership.

Social media is another avenue that is completely free and can put the name of your dealership in front a large group of people. Create your own social media site and provide your followers with information that is interesting, useful, and that they would want to share with other people. Post at least a few times per week and always monitor the site so you can answer any questions people may post or respond to anyone that leaves a comment.

Focused Approach

You need to decide what type of cars you want to sell in the beginning and then stick to those types. For example, you may want to sell only European cars. If this is the case and you market your business as selling European cars, you should not have many American cars sitting on your lot. Have a variety of cars to choose from, but do not start out with a large inventory. You need to first see if your car dealership is going to be successful. You do not want your business to fail and be left with a lot of cars sitting on your lot.

You also need to focus on where you are going to purchase your cars. You could purchase them at auctions or through individuals. A lot of dealerships also sell cars to each other to get the right inventory, so check out sites like to see what's available. When you sell a car, make sure you replace it as quickly as you can. Over time, you can widen your focus and increase the number of cars you keep on your lot.