Starting a dealership
Dealership startup checklist
A practical checklist for launching a UK used car dealership — legal, financial, operational and marketing tasks in the right order.
TL;DR
Work through this list in order: legal setup, insurance and FCA, premises, banking and stocking, systems and photography, first stock, marketing, then launch. Skipping steps almost always creates rework — do it once, properly.
Legal and tax
- Form a limited company or register as self-employed.
- Register with HMRC for tax, PAYE if applicable, and VAT if you cross the threshold.
- Register with the ICO for data protection.
- Open a business bank account and separate personal spending.
Insurance and FCA
- Take out motor trade insurance (road risk or combined).
- Apply for FCA Limited Permission if you plan to offer finance.
- Add employer's liability if you hire anyone.
Premises and equipment
- Secure a pitch, unit or driveway with the right planning permission.
- Install CCTV, fencing and lighting.
- Get trade plates from the DVLA.
- Buy a photography kit — camera, backdrop or turntable, valeting supplies.
First stock and finance
- Set up a stocking loan or ring-fence cash for buying.
- Register with the auctions you want to buy from (Manheim, BCA, Aston Barclay, etc.).
- Source 3–5 opening cars in your chosen segment.
- Recondition and MOT each unit before listing.
Systems and marketing
- Set up a DMS (Lotra) with your stock and templates.
- Create AutoTrader, Facebook and website listings.
- Set up Google Business Profile with pitch photos.
- Draft your terms of sale, complaints procedure and privacy policy.
Launch day
- Reply to enquiries within 15 minutes — inbox live from hour one.
- Test the finance quote flow end-to-end.
- Print terms of sale and invoice templates.
- Book in your accountant for a monthly review.
Frequently asked questions
How long should the whole list take?
Most first-time dealers complete it in 6–12 weeks. FCA authorisation is usually the slowest step.
Do I do this alone?
Consider an accountant for the tax steps and a broker for insurance. The rest is doable solo with time.
What if I already trade informally?
Formalise as fast as possible — the moment you trade at scale without insurance or FCA cover, one bad transaction can end the business.
Should I open with a launch event?
Small events help with local trust but rarely drive sales. Prioritise your listing quality and reply speed.
Related guides
What is a Dealership Management System (DMS)?
The foundational guide to DMS software, its core modules, and why independent dealers need one.
Switching from spreadsheets to a DMS
A step-by-step migration plan for dealers moving from Excel and Google Sheets to Lotra.
Vehicle inventory management for car dealers
How modern inventory management works — from auction purchase to sold, without spreadsheets.
See it inside Lotra
Lotra is the operating system for independent dealerships. Inventory, CRM, finance, listings and AI insights in one workspace.