Are You Planning for A Car Showroom?

Car is an expensive item and hence while planning for a car showroom, you need to consider few things so as to make your endeavour a success story.

As the item that you have to deal with needs plenty of space, you need to hire a suitable architectural firm like architecte Stendel + Reich who will help you to design and build your showroom.

To start with, you need to provide following inputs to your architect so that he can design the building accordingly:

• What will be the maximum number of cars that will be stored in your showroom?
• How the day to day activities of your business will be conducted by your staff in order to deal with various customers.
• How much space will be needed for the movement of the cars?
• Where customers will wait till their car is ready for delivery?
• Volume of sales you can do in a day
• Consider the toilets for staff as well as for the clients.
• Whether there will be any workshop for servicing too?
• How much space will be needed for providing after-sales services

After that, you need to look for suitable location where you would like to open your car showroom. Since for such projects, you will need a huge amount of space and hence you cannot select your space in very high traffic areas.

Therefore, you have to look for such area which is not too far way from the commercial area where your showroom will not be visible. You have to make sure that your showroom is located in a such place which is easily accessible for your clients.

Funding and procurement

Next thing to consider is how you will run your business after creating your showroom. How will you arrange for the finance needed for running the business is also very important?

Most of the car showrooms are managed by a number of partners. Following are few options available:

1. Freehold

This is most traditional approach where the showroom financing is undertaken by dealership, which is responsible for investment.

1. Sales and leaseback

In this option, first the dealership is developed and then the showroom is sold to any financial institution, or leased for certain specified time.

This will enable dealership to release their capital that is tied up in development and put their effort on motor retail instead of its property portfolio.

1. Car manufacturer

Often the car manufacturer takes up all the responsibilities. They will support the dealership by supplying information about sites, and also give sales target for the area.