Much like setting up any other type of business, starting your own car dealership requires lots of planning, budgeting, and paperwork. Depending on your circumstances, you have to declare your status to HMRC, whether that is registering as self-employed, or registering as a limited company. As you move on with your business, registering as a limited company may be more of benefit to you, as well as things like getting more appropriate cover from your insurer. Below we discuss several points to consider when setting up a car dealership.
Specialization
First of all, you’ll need cars to trade. Work out your specialism – is there a niche you could fill in your local area? For instance, if you’re in a rural area, there will be more demand for off road vehicles such as Land Rovers and other 4 wheel drives. If you’re in an affluent area, selling popular luxury car brands like BMW and Audi makes a lot of sense.
Online Presence
Build up a solid and professional website. Look at it as if you were a potential client – check for clarity, ease of navigation, and the presentation of lots of information in a palatable and concise way. Link to social media and build awareness of the business in the locality and further afield. Get a page on Facebook showing your wares and giving information and regular updates and posts with relevant information. As always, stay professional and take tips from those already established.
Premises
Naturally, you’ll need premises on which to keep the vehicles you’re selling. If you don’t have much space available to you and you have more cars than space on your property, this may present a problem if the cars aren’t road taxed. Rent a yard, a warehouse, or check estate agents for available sites for development that fall within your budget and meet your requirements.
Financing
Starting your own business will require a business account as banks won’t let you use your personal account for business. Banks usually provide a number of incentives in the initial stages of taking out an account. Get set up with HMRC and get to grips with all the important paperwork you’ll need to provide and keep. Being self-employed, you’ll need to make sure you complete your tax return correctly and on time. Additionally, you will need to check the margins for when you will need VAT in your sales.
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