10 Strategies for Starting a Car Dealer Business

If you’re in the car dealer business, then there’s good news and bad news.

On the positive side, the car industry is thriving if the number of monthly sales is anything to go by.

On the less positive side, tariffs and other economic challenges mean that tomorrow’s success is uncertain.

While the rise of online car buying has meant that real-world dealerships face more intense competition than ever.

In the old days, car dealerships could simply exist and be reasonably confident that they’d snag customers, for the simple reason that consumers didn’t have much other choice.

Today, they do have a choice. As such, car dealerships need to put additional time, effort, and resources towards increasing their sales.

In this post, we’ll run through some effective strategies that could, when put all together, have a profound impact on the number of sales you make. 

1. Put Together a Marketing Strategy

Even if locals know where you are, that doesn’t mean that they’re guaranteed to come your way.

You’ll have competition for customers, and the dealership that your potential buyers choose will come down, in part, to whichever dealership actively courts them. 

One effective way to do just that is to put together a marketing strategy.

The marketing strategy should be that gets your business in front of your potential customers when they make relevant online searches.

In 2025, your best bet for getting in front of qualified customers is to utilize targeted marketing via social media and Google (and other search engines).

If you’re unsure of how to do digital marketing correctly, then look at hiring a social media and PPC marketing firm, ideally one that specializes in car dealership marketing, to do the job for you. 

2. Update Your Website

Getting your potential customer’s attention is just the first step on the journey that will hopefully end with them buying a car from your dealership.

Before deciding to get in their car and pay you a visit, they will likely — in fact, almost certainly — take a look at your website.

What they find will have a big impact on their decision to visit you in person.

A well-designed, modern website that offers as much information as possible is paramount for making a positive impression.

If you already have a website, take a critical look and see if there are areas for improvement.

If the site was put together more than a few years ago, then there will likely be some design elements that need a bit of an update.

Read: Mobile Apps vs Mobile Websites: Which one is Better for Your Business?

3. Detailed Car Information

Your website should function as an extension of your showroom.

It should demonstrate the qualities — such as expertise, care, and customer service — that customers can expect should they choose to buy from you. 

One way to make a positive impression is to provide detailed car information.

The information should outline all the need-to-know details about the cars you have in stock.

High-quality images and videos, thorough technical information, and the price are the bare minimum that modern buyers expect.

Some car dealerships avoid putting the price online since they think it’s better to wait until the customer is onsite.

But that’s a mistake, listing the price builds trust, and it’s also better for your dealership.

If someone sees the price and still decides to visit you, that means that they’re a qualified buyer. 

4. Focus on Local SEO

We mentioned earlier about putting together a paid marketing strategy, such as a search engine or Instagram PPC campaign.

However, it’s also important to invest in your site’s SEO — search engine optimization — which is an organic, long-term way to reach customers.

Essentially, boosting your SEO increases the chances that people will see your website, not your competitors when they make a relevant search. 

Rather than focusing on general SEO, focus on local SEO.

This is a key difference since local SEO puts your dealership in front of people who are in the local area (who are likely the only people you’re targeting).

Happily, techniques that boost local SEO are similar to those that enhance overall SEO, just with a local twist.

For example, instead of using a keyword such as ‘car dealership,’ you’d target ‘car dealership near me’ or ‘car dealership [city name].’

For more guidance, take a look at these simple SEO tips for better rankings.

5. Encourage Reviews

Customer trust is important for all businesses, but it’s especially vital for car dealerships.

After all, customers want to know that they’re buying from a reputable, trustworthy business, especially when they’ll be spending a small fortune. 

You can demonstrate your trustworthiness through your website, customer service, and transparency, but arguably the best way is to have other people vouch for your business.

Positive online reviews can be a game-changer for a business, and it’s no exaggeration to say that it really can make the difference between you making a sale and your competitor making a sale.

Some customers will leave a review simply because they want to, but most will need a little nudging.

So, look at encouraging happy customers to leave a few words. If they’ve had a great experience with you, then they’ll likely be happy to do so.

To take things a step further, consider these innovative ideas to improve customer experience and leave a lasting impression that turns one-time buyers into loyal advocates.

6. Invest in the Showroom

Your potential customers might form a favorable view of your dealership based on what they see online.

However, the true first impression is created when they visit your showroom.

A well-designed showroom sets the tone from the beginning.

It gives customers the confidence that you’re the right dealership for them.

So, what makes for a great showroom? Having a spotless, well-lit environment is essential.

In fact, cleanliness is so important that it’s best to work with an auto dealer cleaning company rather than trying to manage the cleaning in-house. 

Beyond that, it’s about arranging the vehicles in an open, uncluttered way that allows customers to browse the selection in an easy, unrushed way. 

Finally, don’t forget the power of a positive environment. Happy staff, pleasant scents, and light music can all help to create an inviting atmosphere. 

7. Employee Training

Customers are only going to outlay a small fortune if they trust that they’re getting a car that’s worth the money.

If customers don’t believe that the dealership’s employees have a good grasp of the technical components of a vehicle or how to deliver excellent customer service, their trust will naturally decline.

In such cases, it’s understandable if they choose to look elsewhere.

Remember: a well-trained team of employees really can make all the difference to a car dealership’s growth.

Investing in their training, offering commission based on customer satisfaction as well as sales, and having a culture of open communication in which employees work with — rather than against — one another can be a game-changer. 

8. Improve The Car-Buying Process 

It takes a lot of work to reach the point where a customer wants to purchase a car.

Yet, for the customer, it’s often the last stage. The actual car-buying process that proves to be the most difficult.

Slowly progress, such as taking longer than necessary to iron out all the details, can have a customer thinking twice.

Even if they do end up going through with the purchase, as most will, they’ll be less likely to refer your dealership to others if it feels like a soul-destroying experience.

As such, one easy and effective way to boost your car dealership is to refine and improve your processes.

By eliminating unnecessary steps and giving your employees the tools they need to succeed, you can eliminate headaches for both your customers and your employees.

This, in turn, helps to boost overall productivity.

They’re two things that can very much push a car dealership in the right direction. 

9. Expand Your Inventory

Some buyers will want a new vehicle, others will want pre-owned cars.

Some people will be happier buying a traditional, gas-powered vehicle, while others will be ready to make the transition to an electric vehicle. 

You can ensure that you can target as many car buyers as possible by expanding your inventory to include as many different car types as possible.

Ultimately, a buyer will only come to you if you have what they’re looking for! 

10. Door-Delivered Test Drives

Some buyers are so enthusiastic to buy a new vehicle that they’ll make it their mission to visit a dealership and test-drive a car.

But others will be slightly less motivated; they’ll be waiting until it’s convenient before they get the ball rolling.

One way to increase the chances of selling to one of those customers is to offer door-delivered test drives.

Here, the car they wish to test drive is taken directly to them at their work or home.

It takes some effort on your behalf and it might just make you a sale.

Plus, this will make your customers feel really special.

Conclusion 

As we said at the beginning of the article, it’s a period of mixed blessings for the car dealer business.

Though there are more car sales than ever, there’s also more competition than ever.

By taking the strategies we’ve outlined above on board, you can put your car dealership in a position to not only survive but thrive during this transformational period.