Starting a dealership
Opening your first forecourt
How to pick a site, agree a lease, kit out the pitch, and open the doors on your first physical dealership.
TL;DR
Pick the smallest viable pitch on a road buyers already drive. Negotiate a short break-clause lease, invest in security and lighting before signage, and open with 8–15 well-presented cars rather than a full pitch of mediocre stock.
Picking a site
The single best predictor of walk-in traffic is passing traffic. Prioritise a site on a route buyers already use — near supermarkets, other dealers, or main commuter roads. Cheap out-of-the-way pitches rarely pay off; you save on rent but spend the difference on marketing to get anyone to visit.
Negotiating the lease
- Ask for a rent-free period covering the fit-out weeks.
- Insist on a tenant-only break clause in year 2 or 3.
- Check the landlord's dilapidations schedule carefully.
- Confirm the site's use class allows vehicle sales — do not rely on verbal assurances.
- Use a commercial property solicitor before signing.
Fitting out the pitch
Prioritise, in order: security fencing, CCTV, lighting, tarmac condition, a small office or portacabin, and signage. Bunting and flags are the last thing you buy, not the first. Insurers charge less on secure pitches — the payback is usually within a year.
Opening week
Open with 8–15 fully prepared cars — clean, photographed, listed on every channel, and priced sharply. A Google Business Profile with real photos, a soft-launch post on local Facebook groups, and a small press release for the local paper cost nothing and build early trust.
Frequently asked questions
How big does my first pitch need to be?
Aim for space for 8–15 cars plus customer parking. That is usually 400–1,000 square metres.
Should I lease or buy?
Almost always lease for the first pitch. Buying ties up capital that would be better spent on stock.
What planning permission do I need?
Class Sui Generis — car showroom. Confirm the site's use class with the local council before signing anything.
Do I need staff on day one?
You can operate solo initially if you can juggle sales, admin and reconditioning. Most dealers add a second person once they reach 15+ units in stock.
How long should the lease be?
3–5 years with a tenant break at year 2 or 3 is a good balance of security and flexibility.
Related guides
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Switching from spreadsheets to a DMS
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Vehicle inventory management for car dealers
How modern inventory management works — from auction purchase to sold, without spreadsheets.
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