Want to Start Your Own Car Dealership? When it comes to starting a new or used car dealership in Australia, one of the biggest ongoing expenses that you will need to navigate is the cost of renting a location.
That brings us to the question, how much does it cost to rent a car dealership location in Australia? EasyCars has put together the complete guide that dives into the average rental costs for car dealerships around Australia.
Let’s dive into it!
Average Dealership Rental Costs by Major Australian Cities
The costs of renting a car dealership location will vary based on the location and state where you are looking to trade from. In Australia, rent is typically determined based on the square meters that your dealership needs. Here is a breakdown of the current average rental costs in each major Australian city.
1. Sydney
Sydney, Australia’s largest and most populated city. Due to the size and competition, renting a location for a car dealership in Sydney is the most expensive in the country. If you are wanting to trade from a location on a major road, you will need to pay a premium.
- Average Cost: $350 to $500 per square meter per year
- Example: For a 1,000 square meter car dealership lot, rental costs can range from $350,000 to $500,000 annually.
- High-Traffic Areas: Parramatta Road, Alexandria, and Western Sydney are very popular choices for starting a used car dealership in Sydney and yield strong visibility and traffic.
2. Melbourne
The second biggest city in Australia and one of the more expensive cities to start a car dealership is Melbourne. Like Sydney, the benefit of starting a car dealership in Melbourne is that you are located in a big market with a large population.
- Average Cost: $250 to $400 per square meter per year
- Example: For a medium-sized used car dealership in Melbourne using 1,500 square meters of space, rent often ranges from $375,000 to $600,000 annually.
- High-Traffic Areas: Richmond, South Melbourne, and Maribyrnong are prime popular sites to start and operate a car dealership in Melbourne.
3. Brisbane
One of the fastest rising locations to start a car dealership in Australia is Brisbane, the capital of the state of Queensland. The main reason why Brisbane is seeing massive business growth is due to its vastly growing population and government investment in the lead-up to the Brisbane 2032 Olympic Games. On top of this, rental costs for starting a car dealership are much more affordable than those of Sydney and Melbourne.
- Average Cost: $200 to $350 per square meter per year
- Example: For a large dealership in Brisbane that needs 2,000 square meters, rent often ranges from $400,000 to $700,000 annually.
- High-Traffic Areas: Popular locations that many dealerships have success with in Brisbane are Fortitude Valley, Woolloongabba, and areas near the Gateway Motorway.
4. Perth
Another hot market for car sales in Australia is the Western Australian city of Perth. Like Brisbane, Perth has seen a massive explosion in migration and government investment, making it a hotbed for entrepreneurs across many different industries.
- Average Cost: $180 to $300 per square meter per year
- Example: A used car dealership in Perth that needs a 1,000 square meter lot would cost between $180,000 and $300,000 annually.
- High-Traffic Areas: Popular locations for used car dealers in Perth are Osborne Park, Victoria Park, and Fremantle.
5. Adelaide
Adelaide, the capital of South Australia, has some of the most affordable car dealership locations in Australia, making it one of the most attractive options for new and used car dealership entrepreneurs.
- Average Cost: $150 to $250 per square meter per year
- Example: A small used car dealership in Adelaide that uses 800 square meters would cost around $120,000 to $200,000 annually.
- High-Traffic Areas: Popular locations for used car dealerships in Adelaide city include Mile End, Norwood, and areas near Main North Road.
6. Hobart
Hobart, the biggest city in Tasmania, is another fast-rising location for aspiring car dealers. While Tasmania does have a smaller population compared to major cities like Sydney, Melbourne, and Brisbane, there is a growing market for cars, and rental costs are much lower than in all other Australian cities.
- Average Cost: $120 to $200 per square meter per year
- Example: For a car dealership using a size of 500 square meters, expect to pay around $60,000 to $100,000 annually.
- High-Traffic Areas: Popular areas for car dealerships in Tasmania include Derwent Park, Moonah, and North Hobart.
7. Canberra
Rounding off our list is the Australian capital city of Canberra. Canberra is neatly positioned between Sydney and Melbourne, making it a great location for travellers. Rental costs for car dealerships in Canberra are moderate compared to other major cities like Sydney and Melbourne.
- Average Cost: $180 to $250 per square meter per year
- Example: For a car dealership in Canberra using the size of 500 square meters, expect to pay around $90,000 to $125,000 annually.
- High-Traffic Areas: Popular areas for car dealerships in Canberra include Fyshwick, Mitchell, and Phillip.
Final Word
One of the biggest costs for starting and running a car dealership in Australia is rent. Rental costs do vary greatly based on the state and city that you are looking to trade from. The costs presented in this piece are found to be average as of 2024. It is important to note that rental costs can vary greatly based on different economic factors and demand.
DISCLAIMER – The content within this blog does not constitute professional advice and is intended to be general in nature. Please consult with all relevant parties prior to making any decision.
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About EasyCars,
EasyCars by Jeal is an Australian, web-based, dealer management system that automates the buying and selling of motor vehicles. Using the latest technologies, EasyCars removes frustrations experienced at the dealership and opens your doors for greater growth.
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