Starting a car business requires planning, marketing, and financing. One of the most challenging aspects of a start-up business is finding a location to determine the demand for a new car dealership.
One approach is to look in areas that already have car dealerships such as the Martinsville car dealers, to determine whether this is a good location. It is well known that competition brings in more business.
A market search must be performed. Pick a possible location and search the Internet in the area of the Martinsville car dealers to determine the number of car dealers within ten miles of this location.
You may need to employ a market research company which has an advertising division, to perform an automotive industry trends analysis, to determine the numbers of car sold by model. The goal is whether a new dealership would be successful in your desired location.
In your location, you must decide what type of customer you want to attract. The main factors to consider are gender, age, income, and occupation.
Is your customer white collar with above average income, or a person just fresh out of college, or a stay at home mom whose children need transport to and from school, sports and to the dentist?
Women like crossover utility cars that are economical and small and prefer a more gentle curving style of the body and not the muscle look of a truck. As for pricing, women are cautious and prefer imports less than $20,000.
Young newlyweds seek affordability, safety, and reliability, with room for passengers. A very tight budget limits their selection of vehicles, which permits them to afford the maintenance.
There is a wide difference of opinion concerning the car that men want versus their wives. Men want status, performance, and style and will pay up to $100,000. It is more likely that the vehicle will cost, on the average, $50,000. The research will show you that your customer will probably be a male between the ages of twenty-seven and fifty.
The best way to attract and maintain a customer is by investing in a service department. A service department keeps your customers away from your competitors, with the result of a self-referral for a new car. Your satisfied customer will also give you good referrals to friends and family.
Before you make a final decision, you have to perform a risk analysis based on reliable research of existing car dealers and customer demand.
The final requirement is the extent of your investment. Do you want to have a new or a used car dealership, foreign only, stand alone or franchise? Your average capital investment will be at least $100,000, not including, lights, heat, employees and any other day to day costs.