Apparently the UK has more car dealerships per capita than any other country so if you were thinking of a new business for your startup plans, why not look into running your own car showroom? Here we look at how to start up your own and talk about the key issues that you’ll need to consider.


In order to showcase your cars to the public, you will need to find a decent location for your showroom. This can be somewhere in the centre of town or perhaps somewhere on an industrial estate that has plenty of parking. The town centre location will cost more but should attract more attention and the out of town premises will be cheaper but may need more marketing to attract punters. Think hard about this because you will need extra funding for your stock and running the business so speak to your accountant before you make and firm decisions.

Funding and Business Plan

Unless you are lucky enough to have a pile of cash lying around, the chances are that you will need some finance to get things rolling. Before you approach any potential creditors you must first draw up a solid business plan. You will also need to show that you have some experience of car salesmanship and at least an idea of where you want your company to be in a few years. You should already be looking into hiring staff and their salaries should be part and parcel of your business plan as far as expenditure is concerned.


You can’t have a car showroom without stock so think about what type of car you want to sell and try to source a good supplier before you open the showroom. Fortunately the UK has hundreds of used car suppliers and sometimes fleet hire companies can be a good place to acquire stock, as can auctions. Just ensure that you know plenty about cars before making any purchases or at least ask a friend or staff member who does to come along.


As we’ve mentioned before, if car sales is not in your blood, you need to find some people who can help because this is not an easy game. You will need at least a few mechanics who can ensure the cars are in good condition before you advertise them and also in case there are any after sales issues that need attention. Also look into hiring a couple of car sales people with a proven track record because your stock is not going to sell itself.

Other Points to Consider

Think of a name that will double up as a brand in years to come and also look into setting up a service and repair department for your business. You also need to make the cars look as good as their sales ticket.  Look into warranties that will make your cars even more desirable and remember that your customer service skills need to be better than average if you are to succeed in this competitive but profitable industry.

By Harry Price

Harry Price is a writer from the south coast.  In his free time, he teaches foreign students English and loves exploring old book shops for a new find to read!