4 Ways to Run a Better Car Dealership

Car dealerships have changed dramatically over the years. With so many of the big motor car showrooms offering great finance deals and a whole host of extra benefits, smaller dealers are finding it challenging to compete in today’s market and are finding they need to work a lot harder to get cars off the forecourt.

The Market

Dealership owners should invest time in knowing their customers and their region. For example, selling small city cars in the countryside might not be profitable, but specialising in second-hand vans in an area where local residents are served by local services could be a good move.

Always set your business sales targets and stick to them. Offering staff incentives and looking at how you can reach your goals will help focus the mind on not just selling cars but also on selling more cars.


Know your stock. Being aware of what you have on the forecourt and what you have coming in means you already have interested customers before you’ve even received the vehicles. This will also encourage customer confidence.

Keeping on top of the industry helps with planning and demonstrates you know the market. Brexit is causing uncertainty, and the motor trade appear to be suffering as a result.


Make sure your marketing targets your customers. If you mainly sell to families or older clients, then reach out to them. Similarly, if professionals looking to commute to the office are your customers, market your business with this in mind.

Knowing the approximate costs of insurance for certain vehicles will help your customers make decisions. Motor trade insurance companies will help your customers get the best prices available. The answer to the question of why do I need motor trade insurance is that it is a legal requirement.

Advertising and Sales

Invest in advertising and monitor what effect different types of advertising have on your business. For example, if you are running a local radio campaign and during this time you see an increase in footfall, then recognise this and plan a new radio campaign.

Have a good relationship with your staff and keep an eye on who is selling what. If a staff member has a bad couple of months, make time to have a chat with them and see how you can help increase their productivity.