The Best Type of Real Estate for Car Dealerships

In the car dealership business, the location and the type of location you operate from can have as much of an effect on your performance as the cars that you sell. Too many dealerships fail either because they didn’t have the space necessary, they had too much, or they were just in the wrong location. This is why you should take your time and make sure that you research your options thoroughly before you make your choice. Here are a few tips on how to find the best real estate for car dealerships.

Independent vs Complex

One of the first things you should consider is whether you want to be isolated, or share the block with other people. These could be other unrelated businesses, or other dealerships.

According to expert HoomanNissani, there are advantages and disadvantages to both. Complexes allow you to benefit from more foot traffic, while independent locations usually allow for more space. It all depends on which type of dealership you’re trying to build. Complexes, for instance, are usually a better idea for luxury vehicles with limited production.

Choosing the Right Location

There are many things that you have to take into consideration when choosing a location for your car dealership. For one, you have to make sure that it is in a place where there’s an actual demand -and this doesn’t just mean cars in general, but the type of cars that you intend to sell.

For instance, most rural areas will gravitate more towards SUVs or pick-up trucks,so you might not have much chance if you’re selling smaller vehicles or electric vehicles, considering that there might be less infrastructure. You also have to know if the actual population of the area can support your business, and if there are other players in the same geographical area.

Then you have to consider visibility. Spots near highway exits tend to be popular, but expensive as well. On the other hand, you don’t want to end up on some obscure road.

The best spots tend to be high traffic roads and roadside locations,but try to find a spot near a busy intersection. And, like we said earlier, don’t be afraid of the competition. Customers will often have similar models from different brands in mind, so they’ll be able to easily switch from another dealer to yours.

Make Sure it is Accessible for Trucks

When you run a car dealership, you’re going to be getting a lot of shipments,and these will be done by large trucks. So, you have to make sure that there is enough space around your building for them to get there and to be able to unload. Avoid spots with small driveways leading to narrow side streets for instance, and make sure that you have enough space for parking as well as bays so that your team can have room to work. If you follow these few tips, you should be able to find a great location for your car dealership. Always make sure you do your homework, and ensure that you research your market thoroughly before you make your decision.