Setting up your own car dealership business can be exciting and challenging. There’s a lot to consider when launching your company, and sometimes, knowing where to start is hard.
We’ve put together a handy guide to help you set the gears in motion, including how to find the most appropriate used car dealer insurance policy and what you’ll need to consider when looking for car dealership insurance coverage.
Find a location
Your decision to rent or purchase a commercial space for your business will often depend on your financial situation. It’s important to keep this in mind when looking for suitable premises.
Depending on your financing, you may want to rent or purchase a commercial lot to use as a forecourt trading space. Contacting a commercial real estate agency is a good way to see which commercial spaces are available in your local area. Chat with them about the space that will suit your business, and don’t be afraid to ask questions.
Top tip: Always organise a viewing before signing a contract. What looks great in pictures might not meet your expectations in real life.
Apply for a licence
You must apply for a licence to set up your own car dealership business. To do this, you’ll need to complete a government-approved application.
To complete the process, you must consent to a criminal background check and provide proof that you have met property regulations.
The licencing authority will also inspect car dealerships to ensure that everything is legal and ready to go.
Recruitment and employer’s liability insurance
If you’re looking to hire more members of staff for your car dealership business, you must have a set application and interview process in place.
Examples of some good interview questions are:
- What is your favourite thing about working at a car dealership?
- What is an example of a time you gave fantastic customer service?
- Try and sell me this stapler.
- Do you have a set strategy that you use to get a sale?
Remember, if you employ other staff, you will need employer’s liability insurance.
Get some cars
There are a variety of ways that you can obtain cars to sell in your car dealership. One of the most common ways to do this is to attend auctions of cars that have been seized from the hands of criminals. These cars are often auctioned off at a low price, meaning that you can sell them for a decent profit.
As your business grows, so will the number of vehicles you sell. You’ll also be able to accept trade-ins from your customers.
Advertise your car dealership
One of the most cost-effective ways to advertise your car dealership business is to print out flyers and distribute them to the local public.
It’s also a great idea to create your website. You can do this using a popular platform that’s easy to use, like WordPress.
Don’t be afraid to get on social media and promote your business that way. Using sites like Facebook and Twitter means that you can reach a wide audience with posts about your business. You could even run a competition to get some interest around your page.
Take out car dealer insurance
If you’re going to be running your own car dealership business, you will need a car traders policy tailored to provide the car dealer insurance your business needs. Car trader insurance costs can vary, so to find more information on the different kinds of motor trade insurance, please visit our dedicated car dealer insurance page.
To get things moving, you can request a car dealer insurance quote online or call our team on 0330 808 1117.