Car dealer business plan template
A car dealer business plan is your model, your market, where your stock comes from, what it costs to run and when you'll make money, written down before you sign a lease. This template gives you each section with the questions to answer and a 12-month cost table to fill in.
What’s in it
- 10 sections with prompts written for Australian used car and consignment dealers
- A 12-month cost and sales table structure
- Compliance and licensing checklist by area
- Key numbers to track from month one
Car dealer business plan template
1. Summary
- What you sell: used cars, caravans, bikes, boats? Price band?
- How: buy and sell, consignment, or both?
- Where: suburb or region, and your state.
- How much money you need, and when you expect to break even.
2. Model
- Split between bought and consigned cars, and why.
- Target stock level (cars on the lot) and target days to sell.
- Target gross per bought car and fee per consigned car.
- Will you arrange finance, warranties or other add-ons?
3. Market and competition
- Who your buyers are and what they drive.
- Who your sellers are (private, trade-ins, auction, consignors).
- The five nearest competing yards: stock, price band, how they sell.
- Why a buyer or seller would choose you.
4. Stock sourcing
- Monthly target by source: private sellers, trade-ins, auction and wholesale, consignment.
- How you'll reach private sellers (website form, ads, referrals).
- Buying rules: maximum buy price as a share of retail, PPSR on every car, inspection standard.
5. Premises and operations
- Site, lease terms, council approval and capacity (cars on display).
- Detailing, mechanical and panel: in house or outsourced? Which vendors?
- Opening hours and who covers them.
6. Licensing and compliance
- Dealer licence (and consignment category if your state has one); salesperson registrations.
- Dealer register or stock book; statutory warranty process; Australian Consumer Law.
- PPSR checks; trust account and auditor if consigning; contracts and transfer forms.
- Finance: own credit licence, credit representative, or point-of-sale exemption.
- Privacy, ID handling and record keeping.
7. Marketing
- Marketplaces you'll list on and the cost of each.
- Website, Google Business profile and reviews.
- Target cost per sale, and how you'll track lead source to sale.
8. Team
- Who does what: buying, sales, recon coordination, admin and books.
- Wages, commission structure and when you'll hire.
9. 12-month cost and sales table
- Columns: Month 1 to Month 12, plus Total.
- Setup (one-off): licence and training, bond and fit-out, signage, IT and software setup, initial marketing.
- Stock: cars bought, average buy price, recon per car, auction and transport fees.
- Holding: floor plan interest or capital cost, insurance on stock.
- Overheads: rent, utilities, insurance, wages and super, software subscriptions, PPSR searches, accounting, marketing and listing fees.
- Sales: cars sold (bought), cars sold (consigned), average sale price, gross per bought car, fee per consigned car, finance and add-on income.
- Bottom lines: total income, total costs, net profit, cumulative cash position.
10. Numbers to track monthly
- Cars in, cars sold, average days to sell.
- Net profit per car after recon, holding cost, fees and ad spend.
- Cash tied up in stock and recon.
- Aged stock over 60 and 90 days.
- Lead source to sale conversion.
Using it
- Fill in the 12-month table with your own quotes, not industry averages. Get real figures for rent, insurance and listing fees before you commit.
- Licensing, warranty, register and consignment rules differ by state. Start with our car dealer licence guide and how to start a car dealership.
- If you'll consign, check your state allows it. Victorian traders can't consign for private owners; WA needs Category E.
- Show the plan to your accountant and any lender or floor plan provider before you sign a lease.
Questions dealers ask
What should a car dealership business plan include?
Your model (buying, consignment or both), market and competitors, stock sourcing, premises, licensing and compliance, marketing, team, and a 12-month cost and sales forecast.
How much money do I need to start a car yard?
It depends mainly on how many cars you buy. Use the 12-month table to add up stock, recon, holding cost and overheads. Consignment needs much less capital.
Do lenders want a business plan for a floor plan?
Expect any lender to want to see your experience, model and numbers. A written plan with a 12-month forecast makes that conversation easier.
Starting a yard? Start it right.
Licensed or nearly there? We’ll show you how one app handles your register, warranty, paperwork and stock from your first car.
Grab the free dealer business plan template, or see the Starter plan.