Starting an Electric Car Dealership is not an easy task. As the Australian Automotive Industry continues to change, there are a few things you need to consider and do before you start your own Dealership.
If you are looking to start an electric car dealership, here is a quick guide to help you get set up.
Strategic Business Plan
The first part of starting an electric car dealership is creating a strategic business plan. If you fail to plan, you plan to fail. Your business plan is the foundation to what you want your dealership to achieve. Think about why you want to start an electric motor dealership? How are you going to sell electric vehicles? Where are you going to sell your electric vehicles? These are the types of questions that should be answered in your business plan.
Here is some of the key sections you should include in your Business plan.
Executive Summary: This is an outline of your motivation and vision for your electric car dealership. Why are you setting off on this journey? What market are you are trying to capture? and where do you want to be? This is used as the motivator for your day-to-day operations
Opportunity: Describe what you aim to achieve, what will you be selling to the customer? Where will you be selling your electric vehicles? Where will you set up your dealership?
Market Analysis Summary: This is incredibly important. The summary is of your intended target market, what types of electric cars are customers looking for and how are they finding them? for This section will need to be re-evaluated every half year and or any significant change in market conditions.
Execution: A statement of how you are going execute your vision of selling electric vehicles. Are you going to be selling primarily online? Will you have a physical dealership? Will you be advertising your vehicles?
Company and Management Summary: A overview of your dealership. This should describe key members of your dealership and what you want them to achieve.
Financial Plan: The financial plan is crucial for the success of your dealership. This section should include your car sales forecasts, profit & loss expectations, cash flow statement and balance sheets. The financial plan should also include a brief description on why you have made the financial goals you have.
Apply for a Motor Dealer License
To sell cars in Australia you will need to have a valid motor dealer licence issued by your residing state. States regulations and requirements differ depending on where you are located.
Dealers will require a motor dealers’ licence if you intend to conduct a business dealing in motor vehicles as a retailer or on a wholesale basis. You will require a motor vehicle recycler's licence if you intend to conduct one or more of the following businesses:
- Buying motor vehicles, parts, or accessories of motor vehicles and as well as dismantling or demolishing the motor vehicles or parts or accessories.
- Buying and selling major body and mechanical components of motor vehicles, major car accessories and parts or accessories of motor vehicles.
A valid motor dealer license is essential for all dealers, dealerships who have no, or an invalid dealer license are subject to heavy penalties from their residing governments.
Click on the links below to apply for a Motor Dealer License in your residing state.
- New South Wales Motor Dealer Licence
- Victoria Motor Dealer Licence
- Queensland Motor Dealer Licence
- Northern Territory Motor Dealer Licence
- South Australia Motor Dealer Licence
- Tasmania Motor Dealer Licence
- Western Australia Motor Dealer Licence
- Australian Capital Territory Motor Dealer Licence
Find a suitable location
Your dealership will require a suitable location to trade from. Like the saying goes, location, location, location! The location you set your electric car dealership up from can significantly impact whether you are successful or not.
Do you research, try to find a good location that offers high foot traffic, you want to make sure you are right in the eyesight of customers. Just as important is safety, you will need to ensure the location you choose is safe for both your staff and your customers.
It is highly recommended you consult with a Safework Inspector prior to agreeing to a location.
Source Electric Vehicle Inventory
Sourcing the right amount of electric vehicle inventory is vital. This is where your business plan is so important. You need to correctly forecast sales, market demand and source the right amount of electric vehicle inventory based on your predictions.
The first step for good inventory management is sourcing the right electric vehicles that sell. It is important to understand what electric car buyers are looking for and order the appropriate models.
There are many ways you can source electric vehicles for your Dealership.
- Reach out to manufactures
- Attend Vehicle Auctions
- Buy from Vehicle Wholesalers
- Buy from Private Sellers
It is highly recommended that you research the current market and understand electric vehicle pricing. Many dealers make the mistake of buying cars over their worth and lose money in the long run.
Set up your Dealership Accounting
Accounting is a key component of running a Motor Dealership. Xero and MYOB are two of the most popular and easy accounting packages used by many dealerships in Australia. Xero and MYOB are a web-based accounting software that allows immediate access for all accounting. They can help you –
- Record your expenses and income to track your dealership’s performance.
- Process payments and staff pay
Build Your Online Presence
Having a great online presence is the key to having a success and a competitive for your electric car dealership.
Here are a few essential Online Pages:
Facebook Business page: Facebook is the most popular platform in Australia with over 17 million users. Having a Facebook business page gives potential customers the ability to search, enquire and buy your vehicle stock on Facebook.
Google My Business Listing: Google is the world’s largest online search engine and advertising tool. 95% of Australian Car Buyers find their next dealership via Google. Having a Google My Business Listing will connect your dealership with local relevant electric car buyers.
Dealer Website: A Dealer Website should be the first destination for all potential customers. Leads generated through Google, Facebook and other sources should all centralise on your dealership website. Your dealer website should give potential customers all the information they need to purchase your electric vehicles.
Organise your Vehicle Advertising
Online Advertising is essential for all Motor Dealers. There are many online vehicle advertisers available to post your electric vehicles, some are even free!
Some popular advertisers include:
- Car Sales
- Cars Guide
Set up your Business Reporting
Understanding your dealerships performance is vital. Failing to report on operations can have serious consequences and can burn cash flow. Reporting generally occurs monthly, however this can be modified to your specific needs e.g. half yearly, fortnightly, or weekly depending on situation and preference.
Key areas of your dealership that you should report on:
- Sales representative performance
- Marketing/Advertising reporting (costs per leads)
- Financial reporting
- Inventory reporting
Get a Dealer Management System to Automate Daily Tasks
To maximise sales, you need to have the best solutions in place that reduce time spent on administration tasks. The best tool for Motor Dealers around the world is a Dealer Management System.
EasyCars by Jeal is an Australian Motor Industry specific, web-based, dealer management system that automates the daily tasks of running a motor dealership. Using the latest technologies, EasyCars removes frustrations experienced at the dealership and opens the doors for future growth.
EasyCars simplifies and automates daily dealership tasks like Stock Management, Advertising, Government Compliance, Website listings, Accounting, Business reporting and more in the one central application.
To learn more about EasyCars Dealer Management System, call us today on 1300 473 744. For a no-obligation free demo of EasyCars DMS please submit the form below.
DISCLAIMER – The content within this blog does not constitute professional advice and is intended to be general in nature.