This car dealership business plan template has 26 pages and is a MS Word file type listed under our business plan kit documents.
Sample of our car dealership business plan template:
Confidentiality Agreement The undersigned reader acknowledges that the information provided by [YOUR COMPANY NAME] in this business plan is confidential; therefore, reader agrees not to disclose it without the express written permission of [YOUR COMPANY NAME]. It is acknowledged by reader that information to be furnished in this business plan is in all respects confidential in nature, other than information which is in the public domain through other means and that any disclosure or use of same by reader may cause serious harm or damage to [YOUR COMPANY NAME]. Upon request, this document is to be immediately returned to [YOUR COMPANY NAME]. ___________________ Signature ___________________ Name (typed or printed) ___________________ Date This is a business plan. It does not imply an offering of securities. 1.0 Executive Summary 1 1.1 Objectives 1 1.2 Mission 1 1.3 Keys to Success 2 2.0 Company Summary 2 2.1 Company Ownership 2 2.2 Company History 2 Table: Past Performance 3 3.0 Products 4 4.0 Market Analysis Summary 4 4.1 Market Segmentation 4 Table: Market Analysis 5 4.2 Target Market Segment Strategy 5 4.3 Industry Analysis 6 4.3.1 Competition and Buying Patterns 6 5.0 Strategy and Implementation Summary 6 5.1 Competitive Edge 6 5.2 Marketing Strategy 6 5.3 Sales Strategy 6 5.3.1 Sales Forecast 7 Table: Sales Forecast 8 5.4 Milestones 9 Table: Milestones 9 6.0 Management Summary 9 6.1 Personnel Plan 10 Table: Personnel 10 7.0 Financial Plan 10 7.1 Important Assumptions 10 7.2 Break-even Analysis 10 Table: Break-even Analysis 10 7.3 Projected Profit and Loss 11 Table: Profit and Loss 12 7.4 Projected Cash Flow 15 Table: Cash Flow 15 7.5 Projected Balance Sheet 17 Table: Balance Sheet 17 7.6 Business Ratios 18 7.6 Business Ratios 18 Table: Ratios 18 1.0 Executive Summary There is a need in [YOUR CITY] for a large selection of quality used cars, and [YOUR COMPANY NAME] will sell these top-quality used vehicles at a competitive price. [YOUR COMPANY NAME] will continue to develop its excellent working relationship with local dealers and auctions to bring the savings to the customer. [YOUR COMPANY NAME] will be successful because the company offers something different; a pleasant car buying experience. [YOUR COMPANY NAME] will create a purchasing environment that caters to the customer's needs. [YOUR COMPANY NAME] is also selling a professional service and an experience in car buying that will bring customers back again, as well as referring friends and family. The company estimates an optimistic gross margin over the industry average. [YOUR COMPANY NAME] will be successful because of the excellent team the company has assembled and the drive and determination of the owner, [YOUR NAME]. [YOUR COMPANY NAME] is currently seeking grant funding in the amount of $350,000 to increase inventory and hire one additional employee. [YOUR COMPANY NAME] feels that the company can offer much more to customers by increasing the inventory and offering much more to choose from. The additional employee will be to assist with the projected increase of sales and demand. 1.1 Objectives 100% customer satisfaction, measured through repeat customers, referrals and surveys. To achieve and surpass the industry average profit margin within the first two-years. To achieve a respectable net profit by year two. 1.2 Mission [YOUR COMPANY NAME] provides a unique car buying experience to the customers in [YOUR CITY] that focuses on customer satisfaction first. [YOUR COMPANY NAME] understands that vehicle purchasing is a necessary, but sometimes unpleasant experience. [YOUR COMPANY NAME] goal is to provide the customer with an enjoyable, honest service by satisfying individual customers practical transportation needs with a quality product. [YOUR COMPANY NAME] also believes it is important to have quality vehicles at a low cost. The company will make a profit by generating sales. It will provide job satisfaction and fair compensation to its employees, and a fair return to its owners. Hard work and performance is rewarded through bonuses and commissions. Job satisfaction is very important for employees and owners, [YOUR COMPANY NAME] will create a work environment that is enjoyable and profitable for all. 1.3 Keys to Success To succeed in this business [YOUR COMPANY NAME] must: Have a team of experienced professionals. Maintain a network of suppliers, in order to buy and sell products that are of the highest reliability and quality, at a competitive price. Ensure customer satisfaction by encouraging the two most important values, honor and integrity. Create high morale by rewarding employee success with monetary compensation. 2.0 Company Summary [YOUR COMPANY NAME] is a corporation established in 1999. The company provides a unique car buying experience for customers in the [YOUR CITY] by providing inspected, top quality, used vehicles for all types of consumers at a competitive price. 2.1 Company Ownership [YOUR COMPANY NAME] is a privately held corporation. [YOUR COMPANY NAME] is 100% owned by [YOUR NAME]. 2.2 Company History [YOUR COMPANY NAME] was founded in [YOUR CITY] in 1999 and is solely owned by [YOUR NAME]. [YOUR COMPANY NAME] already thrives within the area, as there are only eight car dealerships within a 25 mile radius to the company. [YOUR COMPANY NAME] was established when there wasn't one other used auto dealership in the area. The company currently has three employees and has the desire to expand. The company is currently managed by [YOUR NAME] and her husband, [INSERT NAME]. Table: Past Performance Past Performance 2007 2008 2009 Sales $1,547,015 $1,418,248 $1,207,862 Gross Margin $620,937 $492,170 $281,784 Gross Margin % 40.14% 34.70% 23.33% Operating Expenses $273,746 $250,644 $290,929 Balance Sheet 2007 2008 2009 Current Assets Cash $1,115 $29,878 $7,752 Other Current Assets $102,403 $133,282 $926,078 Total Current Assets $103,518 $163,160 $933,830 Long-term Assets Long-term Assets $116,640 $108,640 $108,640 Accumulated Depreciation $39,421 $34,591 $39,421 Total Long-term Assets $77,219 $74,049 $69,219 Total Assets $180,737 $237,209 $1,003,049 Current Liabilities Accounts Payable ($300) ($300) ($300) Current Borrowing ($93,501) ($98,893) ($107,508) Other Current Liabilities (interest free) $0 $0 $0 Total Current Liabilities ($93,801) ($99,193) ($107,808) Long-term Liabilities $0 $0 $0 Total Liabilities ($93,801) ($99,193) ($107,808) Paid-in Capital $0 $0 $0 Retained Earnings $367,002 $408,011 $1,247,534 Earnings ($92,464) ($71,609) ($136,677) Total Capital $274,538 $336,402 $1,110,857 Total Capital and Liabilities $180,737 $237,209 $1,003,049 Other Inputs Payment Days 0 0 0 3.0 Products [YOUR COMPANY NAME] sells top-quality used vehicles at a competitive price. [YOUR COMPANY NAME] buys pre-inspected vehicles wholesale from well known local car dealers and auto auctions. [YOUR COMPANY NAME] continually maintains a diverse stock of vehicles, providing the widest selection for individual needs. 4.0 Market Analysis Summary Almost everyone needs a car to get from point A to B. Many families have two or more cars. Due to the recent success of the new car market, there is a large inventory of used cars available for re-sale. The market for used cars is finding some benefits in the downtrodden economy, as some consumers look to previously owned vehicles for more value. Some lots are even devoting more space to used cars. New car sales are on a dramatic downward slide from around 16 million in 2007 to about 13 million in 2008. And it looks like things will get worse before they get better. With fewer people looking for new cars, dealers are depending on customers to help them get through this slump. 4
