Ruslan Gityazev, an entrepreneur from Moscow, talks about how to open your own, successful car dealership. Ruslan started his business ten years ago, organizing a used car dealership, renting a small outdoor area in a former closed establishment. A few years later, his salon has already begun to sell new cars of foreign and domestic production. Now Ruslan has two car dealerships, one of which is located in the Moscow region.
Car sales business is a very profitable business!
Opening your own car dealership is a very promising, interesting, but at the same time risky type of business. When organizing such a business, you must be prepared for a certain amount of paperwork and very impressive costs.
In addition, it is advisable to draw up a business plan for a car dealership, without which all further actions will look like a gamble.
Instructions for opening a new car dealership
Purpose and goals
The tasks and goals of the car dealership are quite clear - the sale of cars of one or several brands, the sale of accessories for them and car parts, as well as further maintenance.
At the same time, your task is to decide which cars you will sell and from which dealer network you will work.
Writing a business plan for a car dealership and its step-by-step execution is the key to the success of such a responsible and risky business.
You must clearly understand what costs are expected, what profits to expect, what documents to collect and how to implement the rest of the tasks.
The main stages of registration
When opening a car dealership, you need to go through a few simple steps:
- find land for the construction of a new building (rent and refurbish an existing building);
- select a suitable distributor for further cooperation;
- buy all the necessary equipment and install it;
- hire and train staff;
- conduct the necessary advertising campaigns to attract customers;
- form a pricing policy and conduct successful trading.
We create an inexpensive business plan for a car dealership
Ruslan Gityazev says: “I, as the owner of successful car dealerships operating in the market of Moscow and the Moscow Region, have been declaring with full responsibility for more than ten years that every entrepreneur must have his own business plan for the business he is going to develop.
Necessarily!
Even if it is a small beer point, with one or two taps. Without a business plan, you can burn out very quickly and never again “climb” into a new business.”
Location selection
One of the most crucial moments is the choice of a place for a salon. The best option is to open a business in a crowded place, for example, on busy highways.
Pay special attention to the convenience of car access and the availability of public transport stops. At the same time, there is no point in spending money on finding and renting a building in the city center.
The main reason is the high cost. As practice shows, it will be very difficult to recoup high rent. As a rule, most people live in residential areas - that's where the main emphasis should be placed.
There are several options– purchase an abandoned car park, erect a new building, buy (lease) and restore existing premises.
When choosing, rely solely on your financial situation. For beginners, the most promising option is to rent.
When choosing a site, proceed from the fact that the business will develop in the future, so there should be room for opening a service, car parts, tire fitting, a car wash and other outlets.
Do not rush to equip the building and buy equipment - first coordinate all issues with the dealer.
First, you must have a car dealership business plan on hand.
Secondly, the dealer must approve it.
If comments are made, they should be promptly corrected. Thirdly, building design issues should be agreed at an early stage.
For example, when organizing a small car dealership selling economy class cars, it is mandatory to organize all signs and logos in the required color.
As for the interior of the salon and the facade of the building, there are no special requirements here - the owner can plan the design of these elements himself (of course, coordination with the distributor is mandatory). When selling luxury cars, the requirements may be more stringent.
If your decision is to build a car dealership, then you need to plan at least 600-700 square meters of space.
At the same time, half of the area is allocated for cars (showroom), 80-100 square meters for rooms for the administration and employees of a car dealership, and the remaining area for a car service, shop or other premises.
Please note that on average one car occupies about 30-35 square meters of space. This is a very important point. A person should be able to approach the car, examine it from all sides, open trunks and doors.
In the showroom there should be a rack with workplaces for the administrator, salespeople and managers.
As for the cost part, when re-equipping existing buildings, it is necessary to spend from 2-3 million rubles.
If we are talking about capital construction from scratch, then the costs will be more significant and amount to tens of millions of rubles. Do not forget about the cost of rent, which will cost from 40 thousand rubles a month.
Paperwork
Please note that in order to open a car dealership, you need to take several steps (regarding the documentation):
- Conclude a lease agreement for the selected premises (the construction option is not considered due to the high cost);
- Register an entity with the tax office;
- Open a bank account, install a cash register and register it;
- Obtain permission to open the premises from the fire inspectorate;
- Enter the newly formed car dealership as a dealer.
The total cost of processing all documents and approvals - from 100 thousand rubles.
Contract with the manufacturer
A very important stage is the conclusion of a deal with the manufacturer. At the same time, it is desirable to work directly, without any intermediaries. Otherwise, you will have to seriously overpay, and you can not even dream of big profits.
The sequence of actions should be as follows:
- Contact the official representative of the selected car brand. This can be done through the official website or by dialing the phone number of the representative;
- Fill out the form sent by the dealer. Usually, it notes the location of the future salon, the conjuncture, and the prospects for the business as a whole;
- Negotiate with representatives of the company, study and sign the preliminary protocol. Pay attention to this document - it provides all the nuances of further cooperation. It is better to immediately deal with the intricacies of the work than to discover unacceptable points for yourself much later;
- Conclude the final version of the deal - a dealer contract. It is he who is the basic document.
Staff
Very important point– hiring qualified personnel, on which the success of the business and the number of sales directly depend. It is necessary to recruit people who know how to listen to the client and understand their desires from a half-word.
Important criteria are politeness, absence of bad habits, cleanliness and responsibility.
Hire a Human Resources Director.
Such a specialist should control the process of hiring people, demand that they comply with the requirements of the salon, punish and encourage staff.
A good director will be able to build a really effective and efficient team that will bring you income.
In a small car dealership, 8-10 people should work - an accountant, a manager, sales managers (2-3 people).
In addition, you will need a marketer, technicians (provided that there is a car service), sellers (if there is a store). The average cost of paying wages is from 170 thousand rubles.
Advertising
One of the main and most important items of expenditure is a competent advertising company. It is necessary to form the opinion of potential customers, inspire their confidence and bring them to your salon.
The most important stages in promotion are:
- organization of outdoor advertising;
- conducting various PR-actions;
- creating your own resource on the network and its promotion;
- ordering advertising in specialized (automobile) magazines and other printed materials;
- advertising on radio and TV (subject to availability).
How to start your own auto business?
Authorized service station
A very important point is the creation of your own service at a car dealership. This will attract the most incredulous customers to purchase, as well as provide qualified service.
For car service, you need to find a room measuring 200-300 square meters. Additional costs for re-equipment - from 3 million rubles.
Please note that the cost of one lift alone is from 150 thousand rubles, and the purchase of a wheel alignment stand is from 130 thousand rubles. Testers for checking electronics will cost much more. Their purchase can result in an amount of 700 thousand rubles.
As for the parts, the warehouse should have all the necessary items. In this case, the delivery time should not exceed one (maximum two) weeks.
If there are problems with delivery, then it is better to order the most popular parts in reserve - this will avoid many controversial issues in the future.
Results: the business of buying and selling cars is profitable!
Expenses:
- rent - from 40,000 rubles;
- paperwork - from 100,000 rubles;
- re-equipment of premises, purchase and installation of equipment - from 3 million rubles;
- salary - from 170,000 rubles;
- advertising - from 100,000 rubles;
- authorized service station (repair, purchase of equipment - from 3 million rubles).
Income:
- from a car dealership - from 200 thousand rubles per month;
- from service stations - from 80 thousand rubles per month;
- from the store - from 60 thousand rubles per month.
Conclusion
Remember that opening a car dealership is a serious and costly type of business that requires special attention and a serious approach to all organizational issues.
Summary
Car sales can become a popular business area. A business plan for a car dealership includes a description of the idea, a list of activities that need to be done to start a business, as well as calculations of financial and investment indicators.
It is assumed that the car dealership will be engaged in the sale of used cars of domestic and foreign production. The calculation is based on the assumption that 130 vehicles are sold per year.
Payback - about 2 years.
- Summary.
- Marketing review of the market.
- Questions about choosing a salon specialization.
- Investment strategy.
- Secrets of the organization of activity.
- Pricing policy.
- Marketing plan.
- Calculation of income and current costs.
- SWOT-analysis of the project, risk assessment.
- Conclusion.
What is the purpose of a business plan?
- It will help you evaluate what kind of business return you can count on, given the criteria you have defined.
- It will provide an opportunity to find ways to finance the project by contacting a bank or an investment company.
- It will allow you to provide all the necessary steps to start a business.
- It will form the criteria for achieving the success of a startup, on the basis of which you will be able to navigate the correctness of making certain decisions and stimulating staff.
Sample business plan for a car dealership
Select
suitable option
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extended |
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Standard business plan |
Extended car dealership business plan with full business analysis and financial plan for 5 years |
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Detailed financial model of a car dealership |
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Adjustment of the business plan to your figures by our analysts within 5 working days |
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| Business plan volume: 30 pages. | Business plan volume: 80 pages. | Business plan volume: 80 pages. |
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10 000 rub. |
20 000 rub. |
39 000 rub. |
This kit is ideal for those who need a business plan to get a loan or attract investments.
Description
The extended business plan includes a financial model for the car dealership in Excel format.
The business plan was developed taking into account the practice of evaluating projects in Russian banks, as well as taking into account the requirements of investors and entrepreneurship support funds in the Russian Federation. It will allow to justify management decisions on investing in the creation and development of a car dealership, predict its financial results and assess risks.
A full description of the business plan can be downloaded from the link:
ContentTo view the content, download the file:
Tables and graphsTo get acquainted with the list of tables, graphs and diagrams, see the file:
Payment and deliveryYou can pay in the following ways:
- Bank cards (Russia)
- Electronic money
- Terminals and communication salons
- Money transfers
- Bank cards (International)
Sending a business plan and financial model:
Sending is carried out within 24 hours after payment to your email address.
Business organization
In the normal practice of a modern person, periodically change his car, and every year the Russian fleet of personal vehicles is becoming more and more. Under these conditions, opening your own car dealership makes sense and relevance. Whether you can afford an economy option with a demonstration of exhibition samples or you prefer a full-featured large car dealership, in any case, you will need to plan your activities in detail. A business plan for a car dealership will help you.
Stages of business organization:
- Conduct a regional market analysis.
- Pick your niche.
- Find funding sources.
- Lease suitable premises (buy or build).
- Carry out finishing activities.
- Purchase commercial equipment, equip auxiliary premises.
- Buy the first batch of goods.
- Hire and train staff.
- Launch an advertising campaign.
- Start.
First you need to decide what exactly you will sell: used cars or new ones. In the first case, you need to think over the system of acceptance and pre-sale preparation, pricing policy, and in the second, decide on specific brands of cars, and also choose whether you will buy cars from Russian importers or negotiate deliveries with manufacturers.
Market analysis and description of the car dealership project
Of course, the current economic crisis had a negative impact on the state of the market and, and auto sales of the last few years have become the most disastrous in the history of the car market. At the same time, experts say that the bottom of the crisis has already been overcome, the market is recovering and a positive trend is being recorded. The best-selling models in Russia are Hyundai Solaris, KiaRio and LadaGranta.
Produced goods/services
Cars, additional services: maintenance.
Potential clients
Individuals and legal entities.
The figures for opening a car dealership are presented below in an example of a business plan with calculations.
Financial part of a car dealership business plan
Investments:
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Organization registration, paperwork |
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Design work |
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Room rental (first 3 months) |
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Conducting communications (electricity, water supply, etc.) |
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Carrying out finishing work |
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Purchase of commercial equipment |
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Purchase and installation of signs and other advertising elements |
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Purchase of the first batch of goods |
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Other costs |
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According to a ready-made sample business plan for a used car dealership, it is assumed that investments in the business will amount to about 50 million rubles.
Income:
The annual revenue will be about 90 - 110 million rubles.
Expenses:
Annual expenses - about 70 - 80 million rubles.
Profit, payback and profitability of the business:
The payback period is about 2 years, and the profitability is 25%.
Conclusions:
Despite the negative economic trends, the auto sales business can bring good profitability if you adjust to the current market needs and think through every nuance of your work in detail. To do this, you will definitely need a business plan.
Download the business plan template and financial model template and you will be able to:
- Independently determine the key indicators of the project, including those characterizing the results of current activities and efficiency.
- Save more than 150 thousand rubles on the development of the document.
- Attract the interest of potential investors, including banks, investment companies or partners, and obtain the required funding. You will be able to make a decent presentation on the topic of a car dealership business plan.
- Evaluate all possible risks and minimize their impact on the result by making appropriate decisions. Cosmetics store business plan
Starting your own car sales business (car dealership) can bring good profits with proper management. This is consistent with a number of factors. First, despite declining economic growth and falling purchasing power of the population, people always buy new cars. Secondly, at present, most car dealerships are closed after the last crisis in 2014-2016. This opens up a large market share for new players and dealers. These factors are reflected in the payback period of the project, which is 19 months, the break-even point falls on the 2nd month of the car dealership.
To implement this project, you will initially need to purchase your own land and build a building. It is necessary to search for a land plot along major city highways and on streets with high traffic capacity. Thus, the area of the land plot, taking into account the warehouse for cars, is 100 acres, the area of \u200b\u200bthe car showroom is 700 m2. In addition to the construction of the building, it is necessary to hire 24 specialists.
The dealership will sell economy class cars. The car dealership will also provide after-sales service, a car parts store and a tire shop.
Amount of initial investment - 17 932 000 rubles
Monthly profit - 920 000 rubles
Payback period - 19 months
Break even - 2 months
Profitability of sales - 9%
2. Description of the business, product or service
After the past crisis in 2014-2016, the demand for cars is gradually increasing. This is due to the growing demand for cars, as well as the availability of car loans. These factors open up great prospects for opening your own car showroom.
The main activity of the dealership will be the sale of cars. You can start a business with inexpensive cars of the “economy” segment and, as the business or network of car dealerships develops, switch to “premium” brands.
Initially, you can become a dealer of one manufacturer, but to increase the profitability of the enterprise, you can choose several and sell cars of several brands. To submit and review an application to dealers, prepare a business plan and financial model for your car dealership. Also, at the beginning of the activity, it is better to cooperate with Russian importers or manufacturers, since the cars are located on the territory of the Russian Federation and are officially cleared by customs. Then you can search for manufacturers abroad and import cars yourself.
In addition, the dealership can sell not only new, but also used cars.
After dealers and suppliers of cars and spare parts are found, it will be necessary to purchase a land plot of 100 acres and build a car dealership itself, with an area of 700 m2. In addition to construction, major repairs will also be required. For construction, a land plot must be selected based on the traffic flow. It is necessary to search for a site along busy highways or along city rings. Also, the building will need to be divided into the following zones:
- exposition and exhibition hall (200 m2)
- office center (100 m2)
- service and consulting center (250 m2)
- warehouse for spare parts (100 m2)
- technical room (50 m2)
On average, to accommodate one car in the showroom, 20 m2 -25 m2 will be required. Therefore, there will be from 6 to 7 presentation cars in the showroom. This is necessary for convenient inspection of machines. The office center can also accommodate representatives of banks and insurance companies. It will also help increase sales and business profitability.
In addition to selling cars, the car dealership will provide the following services:
- maintenance and repair services
- sale of spare parts and accessories for cars
- tire fitting
These services will help not only increase profitability, but also increase customer loyalty, since most of the services for car owners will be provided in one place.
To organize a car dealership, you will need the following equipment:
- light and music technology
- presentation monoblocks
- visitor furniture
- reception desk
- platform trolleys
- cabinets and racks for storing tires and tools
- cash desks
- computers
- Office equipment
- alarm
- car lifts
- service equipment
- air conditioning system
This equipment can provide customers with comprehensive services.
In addition to organizational issues, the business owner will need to obtain permission to commission the building from the fire inspectorate. Also, to improve the level of customer service in a car dealership, international ISO standards can be introduced.
3. Description of the market
The main success factors of the car dealership are a wide range of products sold, as well as the types and quality of additional services. In order to correctly identify the needs of the client, it is necessary to determine the target audience.
The main customers of a car dealership can be both individuals and legal entities. Some will buy cars for personal use, others for the corporate fleet.
As a result, the two segments need to develop their own unique offerings. For example, favorable purchase conditions or service conditions, the opportunity to purchase a car on lease or on credit. Proposals like these and commercial policy management for customers can help you successfully increase sales throughout the year.
4. Sales and Marketing
5. Production plan
To open your own car dealership, you will need to do the following:
- register a legal entity - IP
- choose car manufacturers and importers
- agree on the terms of delivery of cars
- purchase land
- build a building (construction period 1 year)
- purchase equipment
- recruit staff
- get started
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IP registration | |||||||||
Car manufacturer selection | |||||||||
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building construction | |||||||||
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Beginning of work |
Initially, to open a car dealership, you will need to register a legal entity - an individual entrepreneur (OKVED - 50.10 "Trade in vehicles"). Based on the results of registration of a legal entity in the tax office, it is necessary to apply for the transition to a simplified taxation system. Next, you will need to open a bank account and register cash desks for transferring data to the tax office.
Every year more and more cars appear on the roads. The automotive market is growing, new dealerships are opening, car dealerships are being built. It would seem that opening your own car dealership is a winning and profitable business. But one desire will not be enough. To open a successful dealership requires the experience and knowledge of specialists.
So, first you need to draw up a business plan for a car dealership and answer a few basic questions:
- Dealership of which car factory you want to open.
- Where will the car dealership be located?
- You will be in the business of selling new or used cars.
- How to find competent employees for a car dealership.
- How to get extra income.
Let's consider these questions in more detail.
How to become a dealer
A dealer is a representative of a large company in a certain territory.
In large cities, there are usually already enough representatives of a particular company, it will often be difficult to compete with salons that have already made a name for themselves.
If you have chosen a car factory that does not have a representative in your area, then you can consider yourself lucky. The manufacturer will be less demanding of you, because you will help him enter the new region. Nevertheless, you will still be considered from all sides on the topic of reliability, professionalism and financial stability.
An example of the main package of documents for a meeting with representatives of the automaker:
If the manufacturing company is satisfied with everything, you will need to conclude two agreements with it: a marketing agreement for a dealership and a commercial agreement for the sale of cars.
It is almost impossible to get an exclusive dealership in any territory. Often, this form of cooperation is unprofitable for car factories with business-class cars, since it does not guarantee an increase in sales.
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Location of the car center
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Choose a region
Large cities such as Moscow and St. Petersburg are oversaturated, and opening a dealership there is a risky undertaking. Example: there are more than 80 Audi dealers in Moscow alone! But becoming an official dealer in any region can be a profitable solution, because the solvency of the population in the regions is growing, and they buy new cars regularly.
If you have already decided on the brand that you will represent, you can ask the car factory directly which region is most interesting to them. Some manufacturers regularly publish lists of priority regions where their network is either not developed at all or is not sufficiently developed.
Example: BMW prioritizes the following regions for opening a dealership:
- Chuvash Republic;
- Belgorod region;
- Kaluga region;
- Vologda Region;
- Udmurt region.
Dealers who enter new territories are most often given benefits in the form of an increased percentage of dealer discounts, assistance in advertising promotion and priority vehicle deliveries.
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Choosing a place for a car center
The business plan of a car dealership should include calculations not only for a salon store. You also need to take into account the spare parts warehouse and the repair area. The center, which will provide the buyer with a full range of services, will require a room of about 800 m2.
An example of the distribution of premises for a car center:
Renting a non-residential area of 800 m2 in the city center will always be more expensive than on the outskirts. Example: in the center of Moscow today the cost of 1 m2 is about 120-180 thousand rubles, while outside the Moscow Ring Road the cost will be 20-30 thousand rubles. The difference is significant. In addition, if your car center is located on the outskirts, it will be much easier to deliver new cars. Delivery is mainly carried out using car transporters, which do not have to maneuver on narrow roads clogged with city transport in order to get to the city center.
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Sale of used or new cars
The Western market has long gone from private transactions for the purchase and sale of used cars. Arriving at the car dealership, you will see new cars on display, and a large selection of used cars will be displayed in a fenced area next to the car dealership. At the same time, used cars have a guarantee in the same way, the entire history of repairs and maintenance is preserved.
On the Russian market, you can buy a pig in a poke. The secondary market is held by the so-called "outbid" and private traders. Very few car centers accept a used car for sale. Recently, the Trade-in program has begun to gain momentum, according to which the old car of the client is offset against the cost of a new car.
The car dealership sets its own rules for accepting and evaluating used cars, most often they focus on the following points:
- year of issue;
- mileage;
- brand popularity;
- technical condition;
- appearance.
An example of a cost calculation scheme: the first year of using a car is minus 20% of the price, each subsequent year is minus 10%.
The sale of used cars purchased under the Trade-in program will be after a full maintenance and necessary repairs.
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Choosing staff
Properly selected staff is 50% of success. Opening a dealership requires an office manager, a sales assistant, a car mechanic and a tinsmith. The main criterion in choosing employees is their professionalism and work experience. Especially when it comes to sales managers who are the face of the car dealership, because sales depend on them.
Sellers Qualities:
- good communication skills;
- ability to listen to the client;
- ability to work with objections;
- ability to identify customer needs;
- patience;
- stress resistance.
Employees for work in the service department are selected according to the following criteria:
- technical education;
- knowledge of the car (knowledge of the specifics and features of your particular brand is welcome);
- experience;
- no complaints at the previous place of work.
Keep in mind that the main profit of the dealership comes from post-warranty service, so the specialists in it must be competent.
- Region: Moscow
- Release date: February 2009
- Number of pages: 53
- Report language: Russian
- Method of submission: Printed form, electronic form.
- Price: 15,000 rubles
- Payment: 100% prepayment - 100% prepayment - non-cash | Sberbank | Bank of Moscow
- Delivery: In Moscow free of charge, e-mail or express courier
Used Car Dealership Business Plan: Brief Description
(subject of research, main blocks of a business plan)
The car dealership business plan contains the necessary marketing information about the market. Offers one of the options for organizing a car dealership from the moment a legal entity is established, until the moment of full return on investment. The business plan provides practical recommendations in obtaining a license and permits from supervisory authorities, recommendations on the cost of renting premises of the required area. It offers a choice of the main range of services, selection of the necessary equipment, a detailed calculation of the required initial investment with a calendar plan, the required number of personnel. The calculation of the required areas and the necessary equipment was carried out in accordance with the established recommendations. It also provides a calculation of the payback of the project and other indicators of the project, depending on the projected amount of revenue.
Used car dealership business plan
(purpose, methods, structure, sources of information, excerpts from the text)
The essence of the project: Establishment of an enterprise selling used cars and providing vehicle maintenance services.
The aim of the project: Making a profit from the sale of cars and the provision of related services.
Organizational and legal form of the enterprise: Limited Liability Company.
Attractiveness: The turnover of used cars is an important segment of the automotive market for the following reasons:
- Shortage in the primary market;
- Price advantages;
- The desire of the buyer for diversity;
- Rarity of some models.
If earlier automobile markets were the main source of buying and selling used cars, today potential sellers and buyers are more willing to interact with car dealerships.
Description of the enterprise: The enterprise will include a parking complex and facilities for maintenance. On the territory of the production premises, an office block will be allocated for the company's management and sales managers.
Location of the complex: The most optimal location for the enterprise is the territory within the Moscow Ring Road with convenient access for customers. To accommodate the enterprise, it is planned to lease a land plot that meets the necessary requirements. And to carry out the installation of the necessary premises, subject to agreement with the landlord. The area of the land plot required for placement is from 0.25 hectares.
Terms and stages of project implementation: The period of organization of the enterprise until the moment of opening under favorable conditions will be about 3 months.
Investment planning period: is 5 years.
Financial resources required for the implementation of the project: RUB 27,231,600
A business plan developed by our company will help you open a car dealership selling used cars. You can download for details.
Sources of information and used in the development of a business plan:
1. Regulatory documents of the Russian Federation, Sanitary and epidemiological rules and regulations SanPiN, the regulatory framework for the activities of a small business entity.
2. Internet network.
3. Marketing researches of the state of the market, the cost of services were carried out by specialists of BK-Arkadia LLC.
4. Information of statistical and analytical companies.
